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kittenkat22



Posts: 175

PostPosted: Fri Jan 29, 2021 9:55 am    Post subject: Sales Tax Reply with quote

Hi, just wanted to ask a question about sales tax- haven't been in here much or listed etc and had first sale in over a year (been concentrating on other stores). I know on the other sites they collect and remit the sales tax for you so there is nothing to do- does ecrater do this to?

I tried the search engine and could not find it- probably because it goes back over a year when most places did the switch.

TIA
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SheilaDeesPostcards



Posts: 4249

PostPosted: Fri Jan 29, 2021 10:20 am    Post subject: Reply with quote

There has been no change on eCrater regarding the collection of sales tax. It is the individual seller's responsibility.

Welcome back, I've always thought you had lovely items. There have been a number of changes in the last few years. Some are listed under the news tab when you log into your admin. Most of the other changes are going to be in the eCrater Seller's Only section of the forum.
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pickychicky



Posts: 1552

PostPosted: Fri Jan 29, 2021 10:57 am    Post subject: Reply with quote

When you consider the individual seller's taxable sales in each state (rather than counting ALL sales as EVERY SELLER'S sales so they will ALL meet a state's threshold), most sellers wouldn't even come close to meeting the threshold required to collect for a state. So, technically, if we do not meet any state's threshold, then there's no need for us to collect (like they do on other sites. whether or not you're individually required).

ETA: This is one topic I will be taking up with my SAG, as well as related federal agencies (covering a number of eCommerce-related topics).
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kittenkat22



Posts: 175

PostPosted: Fri Jan 29, 2021 11:10 am    Post subject: Reply with quote

Thank you all for the response and the kind words.

I thought they did away with the individual threshold and were automatically collecting sales tax for every state that charges sales tax. ebay and etsy do this for every sale and every state, buyers no matter where they live are required to pay sales tax on every purchase online and it would be at their state sales tax. I don't understand how ecrater doesn't do this?

Here is an article from etsy that they are required as the marketplace to collect sales tax. https://www.etsy.com/seller-handbook/article/marketplace-sales-tax-where-etsy/321914904041
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kittenkat22



Posts: 175

PostPosted: Fri Jan 29, 2021 11:17 am    Post subject: Reply with quote

Just found this and thought it interesting- perhaps ecrater is not a marketplace facilitator and that is how they avoid having to collect and remit sales tax? Question is do we still need to collect and remit not in every state regardless of the threshold?

https://www.ecommercebytes.com/C/letters/blog.pl?/comments/2019/6/1559660749.html/2/20
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MrsDsHandKnits



Posts: 243

PostPosted: Fri Jan 29, 2021 11:40 am    Post subject: Reply with quote

@kittenkat22
If you are referencing the online/internet tax that is required to be paid by buyers residing in the 43 or so USA states that have now implemented that requirement for these sales taxes that now must be collected by marketplace facilitators such as eBay, Etsy & so forth & remitted to the buyer's state taxation department, then yes the buyer must pay the sales tax, NOT the seller and the marketplace facilitator must set up its method for collecting those taxes. I sell on eBay so I do know about how the internet/online purchase tax is applied & processed on that site.
As of yet I am assuming eCrater is not a large enough &/or qualifying marketplace facilitator to be mandated by these state laws.
If referencing sales taxes that must be collected by sellers from buyers from within the seller's state, well that is an entirely different matter...
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kittenkat22



Posts: 175

PostPosted: Fri Jan 29, 2021 12:11 pm    Post subject: Reply with quote

Thank you for that answer I think that is the one I was looking for- they are not large enough as a facilitator. State tax I have always paid that.
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MoonwishesStore
moderator


Posts: 17143

PostPosted: Sat Jan 30, 2021 8:13 am    Post subject: Reply with quote

While it is true that you most likely will not fall into the guidelines for states that you don't live in to collect sales tax, you do have to collect your own state's sales tax from buyers from your state. You need to find your state's official website and find the links to sales tax, how to collect it when to turn it in, is there a minimum amount to have to turn over in sales tax, etc. If I collected $4.23 in sales tax, I still have to turn it in.

In my state, if we turn our sales tax in before a certain date we get a small rebate of some of it. I have to turn mine in every 6 months. Some people have to pay fees for the privilege of collecting sales tax for their state, etc. So most of this depends on your own state. The marketplace facilitators will collect but eCRATER doesn't so. Unless you have over 200 orders from one state and/or go over a certain money amount, you don't have to collect sales tax for that state. If for some reason you get stuff flying out the door, you may have to backtrack the sales tax out of your own pocket.

Hope this helps.
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cosmicray



Posts: 7158

PostPosted: Sat Jan 30, 2021 12:54 pm    Post subject: Reply with quote

MoonwishesStore wrote:
Unless you have over 200 orders from one state and/or go over a certain money amount, you don't have to collect sales tax for that state.

My highest state count in 2020 was 85 to California. But some of those (all year on eBay, and partial year on BL) had sales tax collected by the marketplace. I'm guessing 20-30 did not.
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pickychicky



Posts: 1552

PostPosted: Sat Jan 30, 2021 2:15 pm    Post subject: Reply with quote

If you're familiar with how sales tax works (has worked all these years), you would see that the Marketplace Facilitator Act is actually unconstitutional. State residents previously had protections from being taxed by other states over state lines, but they unconstitutionally removed that protection, and then proceeded with their rush to get sales tax money in a completely backwards manner. The removal of those protections should have meant that a seller in one state can charge THEIR customers sales tax for THEIR state -- IF THEIR STATE REQUIRED THEM TO DO SO based on the threshold they set.

They did it the way they did to be the biggest burden on small businesses and to get an inflated injection of funds...quick! UNCONSTITUTIONAL! So, they basically stole money from any seller they collected sales tax from who wasn't individually required to do so.

Seriously, you cannot tell me that it's at all legal to consider the sales of every single seller on a site as ONE seller's sales just so they can collect tax from even those who don't individually meet their threshold. It's also unconstitutional to put such an unnecessary burden on small businesses, creating an environment where they cannot compete (due the time and expense related to sales tax alone), by requiring them to report to the 43 or whatever different states RATHER THAN JUST ONE (their own) as it SHOULD be.

Think about it...the landlord of a store in a mall has absolutely NOTHING to do with their tenant's businesses. Does a state say that all those businesses within a mall must pool their sales together just to make them all required to pay sales tax? No, they simply collect from EVERY customer, no matter where they live, and remit those taxes to their own state. THAT'S HOW WE SHOULD BE DOING IT ONLINE and the states are breaking laws left and right just to do what they're doing -- because they blame all their problems on small business, in general. They're even going to the extent of creating unconstitutional laws to make their criminal activity legal!

These lawmakers are completely confused by JUST the terminology related to our small businesses. We do not sell on marketplaces to give power or ownership of our businesses and products to ANYONE. We simply rent virtual space in a virtual mall to build our businesses...PERIOD! You can rest assured that the reason for their confusion are people like Bezos and the executives of these criminal sites. On one hand, they'll say they are not responsible for the businesses that sell on their site, yet on the other hand will make sure that their selling customers will be completely under their thumb. You can also rest assured that the reason for their confusion is because they don't have individual businesses joining the conversation to clarify. They simply do nothing to protect themselves.

Does a landlord of a mall act ANYTHING like that? NO! They have NO responsibility for the businesses within their mall and the only power they have over them are the typical terms within their lease, which only relates to their residency and what they're allowed as a resident.
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pickychicky



Posts: 1552

PostPosted: Sat Jan 30, 2021 2:41 pm    Post subject: Reply with quote

Let me put it to you this way...I live in Texas where an individual business's threshold is (or was, last I checked) $400. Before all this mess started, if I owned a site like eBay, my state would have been requiring me to charge all selling customers within my state a sales tax on the service fees I charge. I wouldn't have anything to do with their businesses or what they sell. I would simply be responsible for remitting sales tax on the services I provide to other Texas residents. Removing those protections mentioned above should have simply meant that I start charging sales tax to ALL customers and remitting it to ONE state...mine.

Do any of these sites charge sales tax on their service fees? Not that I've seen. No, instead, they're taking over my business with the help of states, making individual small business owners responsible for the illegal activity of all those business owners not collecting when they should -- or their own residents probably not even being aware that they owe Use tax on those items. Even if they were aware, there's no way to prove they owe anything, so why pay it? This whole thing is Unconstitutional on so many levels.

If they simply allowed us to collect for our own state on every transaction, then there wouldn't even be a need for a Use tax because they would be paying the taxes already (double taxation is illegal). Why even have a tax you have no way to enforce? It's more like a Useless tax. LOL

The problem is, if they let another state collect from their residents, then they can't tax them, too. So, states are simply being one-sided, wanting it all for themselves, blaming all their problems on innocent parties -- and even spitefully treating them as they move forward. Do you see the problem now? Are you willing to contact your Congressmen to help set them straight? At the very least, you know eCrater is doing it right.
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MrsDsHandKnits



Posts: 243

PostPosted: Sun Jan 31, 2021 9:57 am    Post subject: Reply with quote

I don't know about the USA, but Canadian sellers ARE charges taxes for "services" on eBay. The GST (taxes)is charged on all eBay fees and that is same for ALL Canadian sellers big or small, business or not, non-store seller or store owner seller, none of it matters, Canadian sellers are paying taxes to use eBay's site.
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pickychicky



Posts: 1552

PostPosted: Sun Jan 31, 2021 7:08 pm    Post subject: Reply with quote

@MrsDs...The state eBay is located in probably requires them to tax all international transactions. I was actually surprised to find out that my state started charging sales tax on services, like my virtual assistant services. It used to be that we didn't tax services, just products, but at least we still don't tax food and prescriptions, like Kansas does. I was appalled to find out just how much they tax their residents there -- it's no wonder many drive broken down vehicles. Fortunately, my car was paid off, so I didn't have to pay property taxes on a $25K price tag. Anywho, Texas probably started taxing services when they started seeing a drop in sales tax revenue. I'm just glad they left food and prescriptions alone.
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