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<p>[QUOTE="Good Cents, post: 3712927, member: 100720"]THE SHORT ANSWER:</p><p><br /></p><p>The Seller's state is irrelevant as long as it is located within the USA. It is the end user's (the buyer's) state where the goods are delivered which determines the requirement that sales tax be collected (or not collected in the case of NH and the other 4 states which don't charge sales tax).</p><p><br /></p><p>It was ALWAYS required of Buyers to remit "Sales & Use Tax" to their home state if eBay or Amazon or Wayfair or ANY Online Seller did not collect Sales Tax for their state. The problem was that NOBODY was doing it because quite frankly, the 300 million consumers in the USA were not about to start doing their own accounting for every online or catalog purchase. </p><p><br /></p><p>THE LONG ANSWER:</p><p><br /></p><p>Before the Wayfair case if someone sold goods regularly on eBay, they were required according to the laws of their own state to register their business with the Sales Tax Authority of their own State and collect and remit Sales Tax on each purchase that was shipped inside their own state. So if a Seller residing in New York sold $____* of goods a year on eBay, New York State required them to collect Sales Tax ONLY on those Sales that were shipped to a New York location. BUT they had to REPORT ALL SALES to New York State, even those that were not New York State taxable. (* Each state had a minimum. If a Seller's gross receipts for the year was like a garage sale where a person sold $300 or less per year of goods, no state in their right mind would come after them. Where it got murky was at what point does it become Reportable within each state regardless of if it was Taxable or not.)</p><p><br /></p><p>All that was the law before the Wayfair decision. Each state had its own minimum of how much gross income an eBay seller made per year before requiring the seller to register and REPORT to the state (regardless of how much was actually state taxable). </p><p><br /></p><p>My understanding is that the Wayfair case ruling maintains that the state in which the goods or services reaches the end user (it's called "Sales & USE Tax") is the state to which Sales Tax should be paid based upon the rate of that state where the goods are delivered.</p><p><br /></p><p>So if a Seller in New York sells and ships goods to a buyer in New Jersey, the state of New Jersey should get paid Sales Tax based on the New Jersey Sales Tax Rate since that is where the goods were delivered.</p><p><br /></p><p>Since this Wayfair ruling, what eBay is doing now is covering it's butt since it fears the States where goods are shipped to will come after eBay for all that Sales Tax due to that state for sales which eBay facilitates since eBay is a bigger and easier target than going after thousands of individual Sellers.</p><p><br /></p><p>In the example above, the New York based eBay seller who is shipping goods to New Jersey in reality should collect and remit those taxes to New Jersey, but they are a small seller and so eBay is taking care of that FOR them. That same seller was already registered in its home state of New York and always collected sales tax on sales shipped to a location within New York. So eBay is not going to take care of collecting New York State sales tax on sales for them because they themselves have been doing it as they were always required to do it.</p><p><br /></p><p>There are 5 states, including New Hampshire, that do not charge Sales Tax on general goods and services. </p><p><br /></p><p>It was ALWAYS required of Buyers to remit "Sales & Use Tax" to their home state if eBay or Amazon or Wayfair or ANY Online Seller did not collect Sales Tax for their state. The problem was that NOBODY was doing it because quite frankly, the 300 million consumers in the USA were not about to start doing their own accounting for every online or catalog purchase. </p><p><br /></p><p>Due to the proliferation of online purchases, states like South Dakota (among 44 others which used to rely on Sales Tax Revenues) were feeling the pinch in terms of the loss of Sales Tax Revenue because they had no way to audit and retroactively charge the millions of individual buyers within their state on every person's online purchases. That's how the South Dakota V Wayfair case came to the Supreme Court. South Dakota wanted to put the burden onto Wayfair to collect the Sales Tax due to it based upon the goods that Wayfair was delivering to customers within South Dakota. But Wayfair claimed that since it did not have a "Nexus" (an office, warehouse or other physical presence) in South Dakota, that it should not be liable for collecting and remitting Sales Tax to South Dakota. Wayfair claimed this based upon the previous Supreme Court decision which was Quill V North Dakota where the SC said that Quill (the company) did not have to be burdened with collecting and remitting sales tax to North Dakota because it did not have a "Nexus" (an office, warehouse or other physical presence) in North Dakota.[/QUOTE]</p><p><br /></p>
[QUOTE="Good Cents, post: 3712927, member: 100720"]THE SHORT ANSWER: The Seller's state is irrelevant as long as it is located within the USA. It is the end user's (the buyer's) state where the goods are delivered which determines the requirement that sales tax be collected (or not collected in the case of NH and the other 4 states which don't charge sales tax). It was ALWAYS required of Buyers to remit "Sales & Use Tax" to their home state if eBay or Amazon or Wayfair or ANY Online Seller did not collect Sales Tax for their state. The problem was that NOBODY was doing it because quite frankly, the 300 million consumers in the USA were not about to start doing their own accounting for every online or catalog purchase. THE LONG ANSWER: Before the Wayfair case if someone sold goods regularly on eBay, they were required according to the laws of their own state to register their business with the Sales Tax Authority of their own State and collect and remit Sales Tax on each purchase that was shipped inside their own state. So if a Seller residing in New York sold $____* of goods a year on eBay, New York State required them to collect Sales Tax ONLY on those Sales that were shipped to a New York location. BUT they had to REPORT ALL SALES to New York State, even those that were not New York State taxable. (* Each state had a minimum. If a Seller's gross receipts for the year was like a garage sale where a person sold $300 or less per year of goods, no state in their right mind would come after them. Where it got murky was at what point does it become Reportable within each state regardless of if it was Taxable or not.) All that was the law before the Wayfair decision. Each state had its own minimum of how much gross income an eBay seller made per year before requiring the seller to register and REPORT to the state (regardless of how much was actually state taxable). My understanding is that the Wayfair case ruling maintains that the state in which the goods or services reaches the end user (it's called "Sales & USE Tax") is the state to which Sales Tax should be paid based upon the rate of that state where the goods are delivered. So if a Seller in New York sells and ships goods to a buyer in New Jersey, the state of New Jersey should get paid Sales Tax based on the New Jersey Sales Tax Rate since that is where the goods were delivered. Since this Wayfair ruling, what eBay is doing now is covering it's butt since it fears the States where goods are shipped to will come after eBay for all that Sales Tax due to that state for sales which eBay facilitates since eBay is a bigger and easier target than going after thousands of individual Sellers. In the example above, the New York based eBay seller who is shipping goods to New Jersey in reality should collect and remit those taxes to New Jersey, but they are a small seller and so eBay is taking care of that FOR them. That same seller was already registered in its home state of New York and always collected sales tax on sales shipped to a location within New York. So eBay is not going to take care of collecting New York State sales tax on sales for them because they themselves have been doing it as they were always required to do it. There are 5 states, including New Hampshire, that do not charge Sales Tax on general goods and services. It was ALWAYS required of Buyers to remit "Sales & Use Tax" to their home state if eBay or Amazon or Wayfair or ANY Online Seller did not collect Sales Tax for their state. The problem was that NOBODY was doing it because quite frankly, the 300 million consumers in the USA were not about to start doing their own accounting for every online or catalog purchase. Due to the proliferation of online purchases, states like South Dakota (among 44 others which used to rely on Sales Tax Revenues) were feeling the pinch in terms of the loss of Sales Tax Revenue because they had no way to audit and retroactively charge the millions of individual buyers within their state on every person's online purchases. That's how the South Dakota V Wayfair case came to the Supreme Court. South Dakota wanted to put the burden onto Wayfair to collect the Sales Tax due to it based upon the goods that Wayfair was delivering to customers within South Dakota. But Wayfair claimed that since it did not have a "Nexus" (an office, warehouse or other physical presence) in South Dakota, that it should not be liable for collecting and remitting Sales Tax to South Dakota. Wayfair claimed this based upon the previous Supreme Court decision which was Quill V North Dakota where the SC said that Quill (the company) did not have to be burdened with collecting and remitting sales tax to North Dakota because it did not have a "Nexus" (an office, warehouse or other physical presence) in North Dakota.[/QUOTE]
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