Forum

Charging sales tax
 

OK so eBay allows you to charge sales tax in every state by setting up a tax table. I have all states set to like 8 percent, instead of doing all 50 separately. Bad idea?

Re: Charging sales tax
 

You should collect and pay taxes for items you ship in your state only, unless you're doing large numbers annually. This is the conclusion I've reached from doing research.

Re: Charging sales tax
 

ok here's what ebay says:

You must charge sales taxes when selling merchandise that you ship or deliver to customers whom live in the same state that you resite in. (This is only if you live in a state that charges sales taxes.)

You DO NOT have to charge any sales taxes on merchandise purchased that is shipped to a location outside of the state that you live in.

is do not the same as cannot :confused:

Re: Charging sales tax
 

That is correct. You collect and pay taxes on merchandise shipped to customers within your state. You do not have to collect and pay sales tax on items shipped outside your state.

Re: Charging sales tax
 

eB won't stop you from charging from all 50 states.

Re: Charging sales tax
 

Im lost...

Why would you want to charge sales tax in states you are not paying sales tax?

IF you have a business location in say New York, you are supposed to collect NYs sales tax and pay into the state of NY.

It would be extremely sketchy to charge sales tax more than the states sales tax and even more sketchy to charge sales tax in states you dont report to.

Re: Charging sales tax
 

Yep there's an article on eBay about people doing this.... It's illegal guys :d well that was nice while it lasted.

Re: Charging sales tax
 

I never hear any seller was called by Comptroller, but it is really risky if found.