I would double check a receipt to make sure. If they’re not charging sales tax or taking it out of the final sale price, they’ll have the IRS breathing down their neck.
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It wasn’t directly invoiced to me. Their POS could be subtracting that on their end though.
???
You drop-shipped an item? Was the end-buyer in a state with 0% sales tax? I would be curious.
Leonhart is an attorney. Shouldn’t he understand basic sales tax laws?
Not sure what you’re referring to but I was the buyer in these scenarios not a seller. They only recently started accepting applications for third party sellers.
I don’t understand what you meant here then:
How would your name and address not be on the invoice if you’re the buyer (and not drop-shipping)?
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I was saying the state sales tax wasn’t on the invoice. Just the total amount owed lol.
I have no idea if it’s being taken out on Stripe or whoever’s end.
The first two sentences make it clear that Rare Candy should be taking out sales tax on purchases if applicable. They are required by law to collect sales tax on items that they sell to jurisdictions that collect it (e.g., states other than Alaska, Delaware, Montana, New Hampshire, and Oregon).
I’m no lawyer but I did look into the sales tax changes when ebay was forced to roll them out
My understanding is that any marketplace that reaches “economic nexus” status (based on quality and/or dollar amount of sales) is required to collect tax on behalf of the buyer.
Not sure how it works given this is more for third-party sellers on their platform
Economic nexus is a gross receipt of $500,000 or less in all U.S. states.
Every state with a sales tax has economic nexus requirements for remote out-of-state sellers following the 2018 South Dakota v. Wayfair decision. Economic nexus generally requires out-of-state sellers to register and collect and remit sales tax once they meet a set level of sales or number of transactions within a state.
Rare Candy exceeds the level to become an economic nexus by a large margin. It may be that they haven’t received that business provision in every state.
Hoping for someone with more knowledge to enlighten us.
On June 21, 2018, the U.S. Supreme Court issued a decision in South Dakota v. Wayfair, Inc. , overturning the physical presence requirement for sales and use tax nexus. The statute at issue in the case required out-of-state retailers who lacked physical presence in South Dakota to nonetheless collect and remit the state’s sales tax if the retailer has $100,000 in sales or 200 transactions delivered into South Dakota in the preceding year.
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Interesting. I think economic nexus is defined by the state and each state has a different definition. Once you hit the economic nexus in that state, then you need to register within the timeframe given by the state and start paying sales tax.
Here is a link to the Sales Tax Institute page on economic nexus. Although I don’t know how accurate it is and you’d probably want to go to the each state website to find out if these are correct.
Yep, that’s what I’m thinking. They haven’t become a nexus in a given state where a buyer is from, so they don’t collect sales tax.
The consignee and buyer are not properly informed and likely don’t know how to individually pay state sales tax even if they were informed. Feels a bit slimey. I get that they may be within the timeline/cutoff by law, but they should be paying sales tax if they’re selling many millions annually. 
How long have they even been doing their auctions? I thought they were relatively new the first time I ever used them.
Everything I’ve won from them have also been consignments.
Wow! Just ping me in the future, lol! There’s a threshold for each state, once that threshold is hit, we have to charge sales tax. There’s a system that automates that for us, I don’t know if it’s stripe or something else, but everything is perfectly in line with all current laws, etc. Some states hit that threshold faster than other. California hit that threshold much faster than a state like Oklahoma for instance.
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We also accept reseller’s license just like everyone else. Those can be filed with help@rarecandy.com
Tried telling people my whole life Iowa was where it is 
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Should buyers be paying sales tax to their state if they were not charged sales tax by Rare Candy even though it would normally apply to the sale?
Like the discussion above was referring to, an online merchant has to hit a certain threshold in sales before they are legally required to start collecting state sales tax. And that would be handled through their POS system that has your billing/shipping information.
You the buyer don’t have to go out of your way to reimburse the state for the items you bought from Texas. That would be wild.
The merchant does not have to legally collect sales tax until they hit the nexus. They pass that burden on to the buyer like it says on their website in my post above. Legally if you were not charged sales tax by Rare Candy on a purchase that would normally have sales tax applied, then you would be responsible to remit that tax to your state. I’m sure no buyers are actually reporting it, but that doesn’t mean they aren’t responsible for it.