My understanding is that the seller is obligated to remit sales tax, not the buyer. The marketplace that facilitates the sale only has to remit the sales tax on behalf of the seller if they reach the relevant economic nexus threshold.
Charging the buyer the sales tax takes money from the buyer but ultimately the seller (or marketplace) is the one that has to remit the tax.
gonna be honest i thought RC was gone already lol i dont pay attention to things outside pwcc/ebay/heritage/goldin these days. but im also not an active market participant.
This is why they avoid remitting the sales tax until they are legally required to do so. And I believe you are right that the seller is responsible for all sales tax. But when the seller does not collect a sales tax on a taxable purchase, then I believe the buyer is responsible for a use tax.
I’m pretty sure use tax completely relies on the purchaser to report it so it is almost never reported. Overall it is not a big deal, but I’m pretty sure the buyer is responsible, whether it’s enforced or not, for the tax that Rare Candy does not collect.
The enforcement of these Nexus laws change from time to time, but rest assured we are up to date on all of these. Most payment processors do this automatically
The buyer would be responsible for the use tax if the item in question is being sent to a state with a sales tax. If the buyer buys an item that is to be shipped or the intended use is in a state with sales tax, than the buyer must remit that tax themselves.
All states are going to be different but here is a few things on New York’s website;
“Use tax is a tax imposed on taxable items or services used in New York when the sales tax has not been paid. If a sales tax has not been collected by the seller on a taxable sale, or when taxable items or services are used in New York and the New York sales tax has not been collected, you must report and pay tax directly to the Tax Department.”
“You are required to pay use tax when you purchase taxable property from a seller who is located outside of New York and you use that property in New York.”
Example:You buy furniture in Massachusetts and you bring it to New York State to use it in your home. You owe use tax on the furniture.
While the buyer is responsible for remitting the use tax, most people do not and that is one reason why nexus changed after the Wayfair decision.
I just wanted to share publicly that the primary role of a company employee on E4 is to respond to questions. Threads like this where people are sharing their honest opinions won’t be swayed by companies doing damage control. This is nothing personal, in fact I know most everyone who works for collectible companies and they are nice people, this is simply to make users aware!
Via a thread of E4 users posting their most expensive buys/sells for the IRS to peruse at their leisure (collectibles tax on sales profits over initial buy price is a thing too…)
Yes. Which is why it is almost never reported. The purchaser would have to file the forms to pay the use tax that they are responsible for. I’m not saying the purchaser must absolutely pay that tax, but that they are responsible for it. If the state had a way to enforce the use tax, then they could make a purchaser pay it. Luckily, they don’t.