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Post by kcatthedog on Feb 11, 2020 10:55:10 GMT -6
Are all US states charging. Sales taxes for on line private purchases even for used gear?
Can non resident reclaim the tax, obviously we don’t consume any US services ?
Or just a cash grab ?
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Post by EmRR on Feb 11, 2020 11:08:44 GMT -6
If you are physically in the US as a non-resident you will pay sales tax at the counter. If I'm in the EU I'll pay VAT of which I can request a refund when returning to the US. Not sure about your case. It seems unavoidable as more and more people see 'flat' taxes as being the way to go, as a US citizen I constantly see people voting for increased sales taxes while refusing property tax increases.
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Post by kcatthedog on Feb 11, 2020 11:26:27 GMT -6
If you receive benefit and service, I understand the tax, if you don’t, I don’t. Never been a fan of consumption taxes as you pay them with after tax dollars so the real rate of taxation or charge against your income is much higher than the stated rate ?
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Post by swafford on Feb 11, 2020 11:40:16 GMT -6
Are all US states charging. Sales taxes for on line private purchases even for used gear? Can non resident reclaim the tax, obviously we don’t consume any US services ? Or just a cash grab ? If you are asking if you are required to pay US state sales tax on online purchases, the answer is yes if 1. you live in a US state that requires it 2. when you purchased the item, no state tax was deducted.
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Post by EmRR on Feb 11, 2020 11:41:46 GMT -6
Are all US states charging. Sales taxes for on line private purchases even for used gear? Can non resident reclaim the tax, obviously we don’t consume any US services ? Or just a cash grab ? If you are asking if you are required to pay US state sales tax on online purchases, the answer is yes if 1. you live in a US state that requires it 2. when you purchased the item, no state tax was deducted. But he lives in Canada
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Post by drbill on Feb 11, 2020 12:17:41 GMT -6
If you receive benefit and service, I understand the tax, if you don’t, I don’t. Taxes are not meant to be understood. They are meant to separate you from your cash. Pure and simple. Be glad you have decent health care and be happy about paying your Canadian taxes. If you want to help us pay ours, please feel free to buy US!!
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Post by kcatthedog on Feb 11, 2020 12:40:28 GMT -6
exactly, where I consume services, I am happy to pay taxes but why be obligated to pay taxes for inputting my money into a state economy when I consume no services there? Was all set to pull trigger, now stopped: feel badly for the seller.
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Post by ericn on Feb 11, 2020 12:48:21 GMT -6
If the gear is shipped directly to an address out of the country it should not be subject to sales tax. If the gear is shipped to a US address it has always been subject to the sales tax of that addresses taxing district, it was just supposed to be self reported, nobody did so the courts ruled states could subject sellers to collect. Even if your not a US resident if the gear is subject to sales tax if it is shipped to a US address as if you walked into a store down the street. Here is where it gets tricky, not all states have passed or need to pass laws or rules as to weather they will order out of state dealers to collect their sales tax. Some dealers are collecting and putting these unsure states sales tax in escrow accounts because they know at some point they will collect. If you are set up as buisness sit down with your accountant and figure out if it makes more sense to buy gear through the company it may save you sales tax but you might end up paying more to your accountant.
As to you not receiving any benefits well if the gear was shipped to a US address you received the benefit of the roads and other infrastructure used so you could make that purchase.
Are there ways to skirt the tax? Sure but hey will cost you more than the tax in most cases and some legal jeopardy.
The best way to figure out what tax you maybe charged call the dealer.
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Post by swafford on Feb 11, 2020 13:30:29 GMT -6
If you are asking if you are required to pay US state sales tax on online purchases, the answer is yes if 1. you live in a US state that requires it 2. when you purchased the item, no state tax was deducted. But he lives in Canada Congratulations?
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Post by kcatthedog on Feb 11, 2020 14:15:26 GMT -6
I think he meant why do the state taxes apply ?
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Post by swafford on Feb 11, 2020 14:31:11 GMT -6
I think he meant why do the state taxes apply ? Right. Why do they apply? They don't. You live in Canada, US state taxes do not apply. Individuals who are buying online pay US state taxes based on the US state from which they are making the purchase, not where the seller is located. That tax may be applied at the time of purchase or, if not, is the buyers legal responsibility to calculate and pay at tax time. (Happy US Tax Time Everyone!) Who is the online seller who does business in Canada and is asking you to pay US state sales tax?
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Post by kcatthedog on Feb 11, 2020 14:41:27 GMT -6
Makes sense to me, it something listed on Gs and I think the seller is just wrong and I didn’t want to argue with him so thought I would check here.
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Post by kcatthedog on Feb 11, 2020 14:44:58 GMT -6
Have you guys heard anything about Reverb and GS are now automatically including these state taxes ?
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Post by swafford on Feb 11, 2020 15:24:20 GMT -6
Have you guys heard anything about Reverb and GS are now automatically including these state taxes ? GS, no. Taxes are applied to retail sales and the definition of retail varies from state to state, but in Ohio a private sale is not classified as a retail sale unless the person buying is engaged in "business." Obviously it's pretty easy to get around not paying that kind of sales tax, unless you are writing the purchase off your taxes and you get audited. (I'm regurgitating what my accountant tells me.) I think Reverb, like Ebay, would be classified by most states as a retail business - essentially they are acting as a consignment service. If you consign a guitar at the local shop, when it is sold, state (and local) taxes are collected. Reverb has been rolling out states to automatically add taxes to purchases this year. In Ohio, it was on the buyer to pay sales tax for online purchases as of 2018.
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Post by kcatthedog on Feb 11, 2020 16:04:57 GMT -6
The guy cross listed on gs which is where I saw it but seems to want to sell through Reverb: just a pain.
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Post by ericn on Feb 11, 2020 16:21:40 GMT -6
Have you guys heard anything about Reverb and GS are now automatically including these state taxes ? GS, no. Taxes are applied to retail sales and the definition of retail varies from state to state, but in Ohio a private sale is not classified as a retail sale unless the person buying is engaged in "business." Obviously it's pretty easy to get around not paying that kind of sales tax, unless you are writing the purchase off your taxes and you get audited. (I'm regurgitating what my accountant tells me.) I think Reverb, like Ebay, would be classified by most states as a retail business - essentially they are acting as a consignment service. If you consign a guitar at the local shop, when it is sold, state (and local) taxes are collected. Reverb has been rolling out states to automatically add taxes to purchases this year. In Ohio, it was on the buyer to pay sales tax for online purchases as of 2018. They charge a fee so they are considered consigners, but even without the fee since technically you don’t buy from the actual seller and the $ passes through them and PayPal as the banker even without the fee you are buying from Reverb or EBay and neither is a 501C3 non for profit so yes they need to collect taxes for the jurisdictions that have requested to do so.
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Post by seawell on Feb 11, 2020 17:16:59 GMT -6
Have you guys heard anything about Reverb and GS are now automatically including these state taxes ? I just got hit with tax on a reverb purchase for the first time. Looks like it's spreading everywhere. Bummer.
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Post by kcatthedog on Feb 11, 2020 18:16:08 GMT -6
Drag, I hate reverb: prefer gs and using PayPal directly.
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Post by ericn on Feb 11, 2020 18:46:47 GMT -6
Drag, I hate reverb: prefer gs and using PayPal directly. The thing is when you consider Reverb gives you some protection and how easy it is to scam somebody especially across the boarder that protection becomes pretty valuable.
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Post by kcatthedog on Feb 11, 2020 19:00:11 GMT -6
Paypal does to: you just need a tracking number. When you pay from your own pp account no trailing state fees etc,?
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Post by ericn on Feb 11, 2020 19:42:59 GMT -6
Paypal does to: you just need a tracking number. When you pay from your own pp account no trailing state fees etc,? Reverb is easier to get $ out of than PayPal, I now only link my Amex to PayPal because the second you threaten to call Amex they know Amex will take the $ away from them and they won’t know where that charge back came from till they get Amex’s response in the mail! For Buyers Amex is king, for sellers it sucks.
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Post by Bat Lanyard on Feb 11, 2020 23:00:16 GMT -6
Have you guys heard anything about Reverb and GS are now automatically including these state taxes ? Yes, Reverb is now charging taxes on used gear. Not going to waste time on the debate though.
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Post by howie on Feb 12, 2020 11:49:01 GMT -6
I have sold several used items through Reverb recently - taxes yes - but also efficient including the $$ transferred to my bank. For one item I temporarily used a stock photo of my item - and they caught that - and suspended my post until I put in my actual photo - I was impressed by that - they were on the ball.
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Post by johneppstein on Feb 12, 2020 16:42:15 GMT -6
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Post by swafford on Feb 12, 2020 17:26:54 GMT -6
Drag, I hate reverb: prefer gs and using PayPal directly. The thing is when you consider Reverb gives you some protection and how easy it is to scam somebody especially across the boarder that protection becomes pretty valuable. Reverb also discounts shipping quite a bit, especially on larger items. And as a seller, I prefer Reverb 99% of the time - after you've been down a UPS hellhole with a lost shipment for a couple of weeks and then have a similar thing happen via Reverb and Reverb takes care of it THAT AFTERNOON, fvck it, I'm sold.
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