NEW   USED   PARTS   ORDERING   PAYMENT   SHIPPING   WARRANTY   RETURNS

TECH   RESOURCES   GALLERY   WANTED   LINKS   NEWS   EBAY   FAKES

HOME   NAMM   FEEDBACK   TESTIMONIALS   CONTACT   EMAIL

TAXES

 

REMOTE SELLERS TAX COLLECTING OBLIGATIONS

This is going to be a fucking shit show as expected. I can already see this will add at least a week of unpaid work to each year, if not much more.

I will be using eBay's extensive resources in this area, and they will continue to add information to their Help page. At present there are 3 states that have enacted Marketplace Sales Tax laws to will affect you if you live in these states.

Pennsylvania - Washington - Oklahoma


PA - 6% Sales Tax - You will be affected as I believe I have sales over $10,000 to PA in any given year. I AM CURRENTLY DOING DATA ENTRY TO DETERMINE LAST YEARS SALES. This includes $10 Parts purchases to $5000 guitars. This went into effect 4/1/18. I will use the reporting method where I will notify you of your obligation as well as notify the state at the end of the year for all sales from 4/1/18 until 9/18/18. Sales taxes will be collected on all current sales going forward beginning 9/18/18 if sales were over $10,000 last year..

Marketplace Sales Act - Tax law explained.

http://www.mcall.com/news/nationworld/pennsylvania/mc-nws-pennsylvania-online-sales-amazon-20180307-story.html

Cliff notes -

The burden of this [law] isn’t on consumers in any way. Instead, it is asking people who sell things to Pennsylvania consumers on the Internet to do one of two things.

Companies that had at least $10,000 worth of online sales [in the previous year] have to register with the Revenue Department for how they will handle sales tax. They have the option of collecting and remitting sales taxes at the point of sale and then making monthly payment transfers to the state. Or they can opt to send annual tax notices to their customers and to the Revenue Department about each item purchased in the state.

The notice would come at the end of each year like other tax documents, such as a W-2 employment form. It would list the online purchases and advise consumers of the need to remit a “use tax” to the state. Citizens then would be required to add the tax information on the “use tax” line located on their annual income tax filing, starting in the 2019 reporting year.

Online businesses had until Feb. 28, 2018 to register their preferred reporting standard with Revenue. They have until April 1 to begin collecting the tax if that is what they are doing, or to send these notices.

The real nitty gritty from the State of Pennsylvania

https://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/SUT/MarketPlaceSales/Pages/Remote-Sellers.aspx


WA - 6.5% State Sales Tax

Effective 10/1/18

I do not have many sales to WA but the sale of a single EVO or DNA could bust the $10,000 threshold and mean all sales for the remainder of that, and the next calendar year I will have to collect WA State Sales tax.

https://dor.wa.gov/find-taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/registration-thresholds-out-state-businesses-retail-sales

Threshold two: Retail sales tax choice (Known as the marketplace fairness law)

Effective January 1, 2018, remote businesses making between $10,000 and 100,000 in retail sales to Washington consumers must make a retail sales tax choice, and may need to register their business. The $10,000 threshold applies to all of your retail sales, including sales made through a facilitator and through your own website or otherwise.

When you make a choice, you must continue that choice for one full calendar year. If, after that year, you would like to modify your choice, you must notify the Department 30 days before changing. Your new choice must go into effect on January 1.

If, at any time after October 1, 2018, you meet the requirements for threshold one you no longer have a choice and must begin to collect retail sales tax for all sales to Washington customers.

Choice #1:

Collect and submit sales/use tax for sales to Washington consumers:


OK - 4.5% State Sales Tax but with some Municipalities that could be as high as 11.5% - Passed a law in 2016 defining nexus pretty typical of most states but finding information of any revision that has eBay now collecting taxes is becoming, taxing! I'll update as I lear more but be advised, if you end up responsible for any OK State Sales taxes on anything purchased from Ibanez Rules that tax burden is yours and yours alone.

https://blog.taxjar.com/oklahoma-sales-tax-law-2016/


MANY MORE STATES WILL FOLLOW!

The most unnerving news is that so far 19 states do not have any "retroactive" language in this bills meaning if they want to they can dig back as far as they want in collecting Sales Taxes.

https://www.bna.com/state-online-sales-n73014477104/

 

 

 

Disclaimer - Ibanez Rules is not affiliated with Ibanez or Hoshino USA.

Copyright August 2000 by Ibanez Rules!!