Seller charging sales tax on shipping?

KoobaMe

KoobaMe

Hardware Junkie
O.G.
Apr 20, 2007
1,845
2
#1
Hi:

I've read the fairly recent post regarding ebay sellers charging sales tax and how to test for legitimacy of that charge, but I've another question:

I purchased a bag from a seller in my state who charged sales tax and the tax is on not just the bag, but the total of the bag + shipping. That is the total the tax is determined by. Is this legit??

Thanks for your help!
 
#2
Well, I've discovered that the state of California does *not* require sales tax be determined by item total + S&H. I've messaged the seller and am awaiting a response from them.

Any one else have experience with this?
 
#6
IMO some sellers are charging sales tax in CA without legally being able to do so. I just dealt with a seller like this. I asked for her tax ID# and she refused to give it to me, and then she refunded my money before sending the item because my question was too much trouble for her to answer.
 
#7
lorihmatthews said:
IMO some sellers are charging sales tax in CA without legally being able to do so. I just dealt with a seller like this. I asked for her tax ID# and she refused to give it to me, and then she refunded my money before sending the item because my question was too much trouble for her to answer.
Click to expand...

good for you!!!! not fair that this seller asking for a state tax, that's why you are buying on ebay to avoid tax then here they are charging you noe... think its greedy ness..IMO no offense.....
 
#8
KoobaMe said:
Well, I've discovered that the state of California does *not* require sales tax be determined by item total + S&H. I've messaged the seller and am awaiting a response from them.

Any one else have experience with this?
Click to expand...

The State of California DOES require sales tax on shipping and handling, unless it can be proved that only actual exact shipping cost is charged. This requires careful and written documentation on each and every sale and is so burdensome on the seller that it isn't worth it. Even if a merchant charges LESS than the actual cost, this will trigger the tax becasue it isn't the "actual" cost. If you live in California and buy from any company who has a presence in California, you are charged tax on the total, including shipping and handling. That includes eLuxury (who is headquartered in San Francisco and Neiman Marcus, who has stores in California (but no Bergdoff Goodman, which does not have stores in California.)
 
#9
KoobaMe said:
Hi:

I've read the fairly recent post regarding ebay sellers charging sales tax and how to test for legitimacy of that charge, but I've another question:

I purchased a bag from a seller in my state who charged sales tax and the tax is on not just the bag, but the total of the bag + shipping. That is the total the tax is determined by. Is this legit??

Thanks for your help!
Click to expand...

I have a tax id# and collect sales tax only for sales in CO. I have never charged it on the shipping charges. However, I have heard that CT and IN are required to charge tax on shipping and CA is not required to charge it on the shipping charge, but they are on the seller's handling charge because it is viewed as profit. I guess every state is different. How confusing! :confused1:
 
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