can a seller add tax as part of total cost?

  1. a previous post stated that californians will be asked to pay tax for online purchases and also on whatever was sold on eBay. this gets me thinking, can an eBay seller demand for tax as part of the purchase? i remember an eBay purchase a week ago, it was for a purse, and it cost around $280 with shipping. i received an invoice from the seller and it was $300+ instead :wtf:, it turns out she added CA tax.. i didnt know sellers can ask for tax.. is this new? or have i been hiding in a cave all these years? :confused1:

    (that purchase was the only one ive encountered that asked for tax.. maybe its just me :shrugs:)
  2. I think if you are in California, and she's in California, and the product is brand new, she can. I had to pay tax on some new wheelchair accessories I bought recently that fall into those guidelines. (Must both be in California, items were brand new from a business.) However, if the purse was used, she can't do that, as tax has already been paid on it.

    I'd also check the original auction and see if it stated she would be adding taxes to buyers in California. Not sure, but I do think you have to say that.
  3. I think if they are registered as a business and have a license, than they do need to collect tax, even if it is used.
  4. ^^ thanks speedy :tup:

    i rechecked and it turns out she was also from CA, the purse was used though. she did state in the auction she will be charging 8.25% tax for CA buyers.
    BUT i double checked the auction, and although she didnt mentioned the words "used" at all, she did say "the dust bag shrunk because i washed it"
    so wouldnt that be another way of saying that its a used bag.

    so was she still allowed to charge tax? even though the bag was used?

  5. ahh i see :thinking:, makes sense if it were a business

    but she was just selling from her personal collection, which means she already paid tax on it when she bought it, am i getting this right? im so clueless when it comes to taxes :sweatdrop:
  6. maybe she is a consignment shop which is a business that collects tax on used items. If she is selling from her personal collection, that would be sketchy...
  7. You can always ask her to show you copy of her reseller's permit, and see what she says.
  8. If it was used (and she didn't state that in the auction) you can file a SNAD. In order to ask for tax, she must have a business license in order to ask for tax. (I'm starting to wake up a little here!) Most sellers give their California Tax ID number somewhere in the auction to be on the up and up.

    When I sold my own jewelry and also did replair work on others, I remember having to ask for tax for the componants, but not for labor. Hmm..

    HOWEVER, that was cut and dried for me, I could only charge tax upfront for the item itself because the materials were used. (Forgive me if I'm kinda out in left field, I am sick this morning.) Okay, it boils down to: Does she has a resale liscense. If so, she's charging tax under this number. That money is supposed to go to the IRS. I am pretty sure (doesn't eBay have a search feature about taxes?) that if she collects taxes, she has to file and give that money to the government, so she should disclose her resale number somehwre in the auction?

    Fascinating question and I'm glad you asked. I hope someone come along with more knowledge abou tthis, since I'm planningon reselling soon and I'd really like to know myself.

    BTW, have tou got the bag yet?
  9. I thought that if the item was in the same state, whether new or used, tax is collected?
  10. sorry im also trying to wake up here :p

    i had the auction link just minutes ago, and i stupidly closed the window:push: arghhh ill find it later

    yes i did get the bag and it was in very good condition, just some normal wear like minor scratches and what not. but it was obviously worn a couple times since the inside had a penmark.

    oh and i previously stated that this happened last week when it was actually more like 3 weeks ago (sorry my brain wasnt functioning properly)

    but i dont recall a tax id number, the auction was pretty simple. just a brief description and then probably 4-5 pics of the item, none of the fancy ebay store stuff.
    im pretty sure she said it was for personal use somewhere in the auction.

    im planning on selling my old stuff soon, and i dont know whether to charge tax or not :shrugs: i dont wanna be doing something illegal
  11. this is what worry, that shes just charging tax so her profit would go up

    i should do that, im very curious.. i just hope she doesnt take it personally

    im curious about this too, but charging tax on something used is like charging tax at a yard sale :confused1:
  12. If you have a resale certificate from your state, you MUST collect tax. The tax goes to the state, not the federal government. A resale certificate allows you to purchase items and not pay sales tax for them because you are reselling them and the state will get their share then.

    Being used doesn't factor in at all.
  13. Learned a lot from here, it's really a complex issue.....

  14. You should not have to charge tax on anything you sell unless you're a reseller/store. Typically sellers have to charge tax when they are located in the same state as you, and they are a reseller.
    They can buy stuff "tax exempt" and when they resell it they have to charge tax.

    It's kind of weird that they charged tax on a used bag though -- I wonder if brick-and-mortar 2nd hand stores charge tax ?

  15. Agreed. I do not believe that a Ebay seller who just sometimes lists is required to add tax.