I get where you’re coming from, and this is probably speaks more to my compliant nature than anything else, but I still don’t think this is a totally unfair thing that was done and honestly is more fair than not on a whole when comparing to physical stores (despite what my inner collector wants to think).
Online presence definitely has its own perks, the main ones being accessibility/exposure to anyone connected to the internet (not to say that physical stores can’t take advantage of this, but this is something exclusive to being online) and a lower barrier to entry (i.e. you can sell from the comforts of your own home).
I’m sure there are people who are going to subvert this system by using instagram/FB/etc. to conduct pp transactions, local transactions, etc. under the table, but this has always been prevalent and has its own drawbacks (lower exposure if you aren’t already established, a high barrier to entry since you need to build up trust to sell but in order to sell you need trust, and risks like scamming).
I think what sucks the most is that we have this expectation of not paying taxes on our online purchases. I was eying a $200 box for a bit and am slightly put off that I now need to pay $10+ for it.
Edit: Upon further reading, I think I may have misinterpreted - are you speaking from a buyer or a seller’s point of view? From the buyer’s point of view, I’m a little more against it, but I still think it’s fair, in this case the biggest perk being convenience (I can buy something from CA and get it shipped to PA in no time and the sales tax will probably not deter this behavior). I don’t think we’re getting screwed over per se, but moreso getting what we’ve always known was going to come along.
I’d have to agree with OP - eBay could have definitely been a bit more “transparent” when rolling-out this new policy… I like to think I keep-up with eBay News and Re-Selling (which I do - very often) - I knew that this policy was imminent and that it was just a matter of time before they rolled-out this new policy; however, I never realized it actually came into affect until WEEKS Later! I remember just a couple months ago, Washington was the first (and only) state within this policy - it’s quickly rolling-out across the nation (every state that charges a sales-tax anyway). O Well… It’s here now - and it’s here to stay!
I’m going to take a different approach to this whole situation and say that I LOVE IT!!! Seriously. Sure, it would have been MUCH BETTER to avoid this whole sales-tax thing all-together; however, we all knew that would never happen. But, this policy just made selling on eBay SO MUCH EASIER!!! eBay has this policy set-up so that they collect all sales-tax and deal with IRS themselves. eBay Sellers don’t have to deal with this stuff anymore - which is AWESOME!!!
All-in-All, I really cannot foresee this having any effect on selling. As an eBay Seller, you’re still netting the same amount as before - this new policy doesn’t change anything in that regard. As an eBay Buyer, you’re most likely going to have to pay sales-tax. However, I really cannot see an extra 5% to 10% making or breaking anyone. I Mean, is a 10% Increase on the buyer’s-part really enough to change our hobby completely (AKA Moving away from eBay)? I don’t think this will have any effect whatsoever.
It may have an indirect effect on sellers due to buyers purchasing at lower price points for cards, especially higher value cards, as they’ll factor in the tax to their total (which the seller does not get to realize), so we probably will see the most prominent behavior changes in high-value transactions.
Absolutely! What stops any business from competing online? Something people who don’t own a business truly misunderstand or underappreciated: there are no guarantees. Everything is in a constant state of effort and adaptation. No one came to me 15 years ago and said, “do x,y,z and you will be financially free”.
This law stems from ineptitude to adapt to the modern market. Moreover, I don’t get to buffer my online store with physical foot traffic perks. I don’t sell snickers bars and soda at 100% profit. But I am paying the same tax percentage? Its an arbitrary new law to appease dinosaurs. Ironically this won’t even bother Goliath entities like amazon, walmart, etc. Its just another fly for them to brush off their shoulder.
I don’t understand what the big deal is with their new policy effecting you as an eBay Seller?
It’s not an additional tax on you (the seller), it’s a sales-tax on your customer. I guess you could argue that more people will shift from eBay to IG, FB… now that they’re having to pay even more than beforehand. However, I really cannot see this being the case at-all! I cannot imagine anyone leaving eBay since they’re now required to pay an additional 5% to 10% (not exactly sure of every states rate).
We all knew this day was coming! Heck, it could have / should have been rolled-out MUCH SOONER! It’s been 2-3 Years since they started releasing 1099-K Forms for eBay Sellers. As far as I am aware, this has been in the talks MUCH LONGER! I’m going to have to side with eBay on this one - this new policy is set-up GREAT (coming from seller perspective). They could have rolled-out this new policy and said here you go Scott, you’re now responsible for collecting and paying sales-tax for every sale you make in whichever state - that would have been a nightmare!
Is anyone more knowledgeable in taxes able to say if there’s a reasonable limit to how much one item can be taxed? Even if it’s not enforceable. It seems insane in principle that the same item can be taxed well over its value over the lifetime of sales it might experience. It’s a built in sink, what I can’t tell with my very limited knowledge is if that’s by design, or a failure to address a time where things are bought, sold, rebought and resold.
This makes it a lot easier to move eBay message customers to deal privately. They save the 8% and sellers save 10%. Win win.
Do I feel bad? Nope. Already I pay for criminal aliens health care, schools, and other cash expenses. Cut that and get your money from there.
Amazon already pays $0 in taxes. So this law does nothing to help that scenario.
Also, Got That Saturation undercuts everyone in Pokemon with modern sealed product, yet physical stores still sell above their prices. That is one of the perks of actually being local, you get the in person sales. No online retailer can compete with their margins.
This sort of introduction doesn’t really surprise me, eBay automatically charges Australians 10% tax at checkout on any item bought that doesn’t originate from Australia that is being sent to an Australian address. The only way around paying the 10% was middle manning purchases to a US address then having thm forwarded to Australia, it will suck if that option gets cut off too due to local sales tax.
If I buy on eBay living in NY as a reseller I do not pay sales tax. I have a tax exemption for items bought for resale.
If flippers were legitimately buying and selling and paying proper income taxes then the answer would be 1. Since people buy and sell and flip without paying any income taxes they don’t have the proper sales tax certs and will be subject to paying taxes on their buys.
I do see both sides of the argument, I feel we do pay a lot of money to our government already and they should be choosing a lot more wisely what they spend our hard earned money on so we don’t have to pay so much. Also I agree it is bogus companies like Amazon pays no tax, it should be weighted a lot different an eliminate big companies loop holes around taxes. I won’t argue my point anymore before I am hated by the whole forum but it will be interesting to go over the numbers in a year or two how it has impacted online businesses and local businesses.