I sold something on ebay last week. I expected to see $206 in my paypal account. I recieved $222.XX instead. When I finally had a chance to look at my statement, it showed I was paid sales tax.
I'm not a business, I do not have a tax ID. I do not want this sales tax. I don't want to spend 15-20 years in jail for the ill-gotten $16 bucks. Should I just refund the difference, contact paypal, contact the seller?
In reply to DrBoost :
Are you sure the $222 ended up IN your PayPal account? eBay has begun administering sales tax for certain states and when they do they both charge the buyer and pay the state for the sales tax. I'm guessing you saw how much the buyer paid and not how much you actually received.
Either that, or eBay will be taking the $16 out of your paypal account as part of your monthly invoice.
Heyo. I actually just ran in to this on Thursday? Friday? Whatever. Anyways, I sold an intake manifold for $230 w/ free shipping.
eBay tells me guy paid $248 or something rather. I check my Paypal, and I have $222.50 from said transaction.
What likely happened is eBay charged guy for taxes upfront, took their fees from me, Paypal took their fees, and then I got the remainder.
If you checked your actual Paypal account, you'd likely see the same. Unless you don't, in which case it's likely eBay will collect it at the end of the month.
I think you will be seeing a lot more state and provincial taxes showing up. It has been a law, I think, for quite a few decades that you are supposed to pay your home taxes on stuff you buy out of jurisdiction. Online sales have made it a much bigger thing.
Tire Rack charges GST, Saskatchewan sales tax and our scrap tire fee as well.
In reply to DrBoost :
There is a spot on your Michigan tax return where you can put that. It's a state thing, not a federal thing, anyway.
It's interesting that Ebay/paypal does not take care of it- they pretend that they are not part of the transaction.... Even though they are the key to the transaction taking place, and part of the reason tax codes all over the country have change to deal with on like purchases and sales tax.
Marketplace facilitator laws now have EBay collecting tax for states that have passed them.
Streetwiseguy said:I think you will be seeing a lot more state and provincial taxes showing up. It has been a law, I think, for quite a few decades that you are supposed to pay your home taxes on stuff you buy out of jurisdiction. Online sales have made it a much bigger thing.
Tire Rack charges GST, Saskatchewan sales tax and our scrap tire fee as well.
It has. I hope the loss of the tax advantage will drive more sales back to local entities (wishful thinking I know). Even if it's a big box store, that's still local tax money staying in your community and someone with a job paying taxes, purchasing goods and services, etc.
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