adding tax to auctions

[cabbagepatchdolls]

hi is there anyway to add tax by bulk edit to auctions, i live in ca and have been hit by the tax man! i have alot of auctions and it will take forever to change each one. thanks

[hurryb4itsgone]

You can try doing a bulk edit. Link to more info below:

http://mootango.webspace.virginmedia.com/ebidkb.htm#a0005

[cabbagepatchdolls]

hi thanks so much for that info, i did try but there isn't any way there to do so, it would be nice if it was added, as right now i will have to go to each auction to do so.

[JanetB]

My question is why are you wanting to charge tax on your items if your status states you are an individual seller? I thought only businesses were allowed to charge tax.

[cabbagepatchdolls]

hi i thought so as well, but i had a long argument with the tax person and if you sell more than 600 in ca you are required to get a sellers permit and have to charge state tax for the state you live in ie ca! they are trying to get back 3 yr taxes from me, which is going to be hard as i don't have the money and i didn't sell much in ca anyway. also even if you sell on craigs list. or have more than 2 garage sales. who knew!!!!! not me!

[HaleysComics]

In the U.S. even hobby sellers are required to pay taxes if they sell over a certain amount a year & it is not a very high dollar amount you have to reach, as C.P has stated it is $600.00 where he is at it is also $600.00 here in KY.
A lot of people don't realize that & if Uncle Sam comes knocking on your door they will get their money. Once they audit you & if you don't have the money then be sure to call the IRS & set up a payment plan because if not they will put a lean on any property you own house car or whatever they can. They will also take whatever money you have in the bank.
That happened to me many years ago, so start keeping receipts for anything you buy to resell, keep track of mileage driving to stores or yardsales when looking for inventory.

Keep Track of all listing fees, fvf fees, shipping costs & supplies & the list goes on & on.

[JaBek1]

Frankly, as a business owner I think it is only fair that someone selling for the purpose of receiving income should be required to collect sales tax and/or be licensed in accordance with the laws of the jurisdiction in which they operate. After all, if they are attempting to earn income from their sales efforts, why should they be exempt from such things. This would give them an advantage over a business which is obligated to collect such taxes and obtain such licenses as is required. Regardless of how a seller is registered here on eBid, they are a business if they are engaging in sales in an attempt to earn income.

Not being familiar with California statutes regarding sales tax and its collection, I have no idea of the $600 limitation. I do believe that the IRS requires that tax be withheld from things like lottery and gambling winnings of that amount and above. However, that applies to federal income tax as opposed to state sales tax. I suppose it would apply to state income tax for those states that have them, but I'm not sure.

One issue that seems to be a problem with many online sites it that a seller can only set up their listings to include only one sales tax rate per state. This is a problem when their state requires them to collect at a rate which is dependent on where the goods are delivered rather than the seller's home location. For example, Florida requires sales tax be collected based on the point of delivery, so the rate can be anywhere from 6% to 7½% depending on the buyer's delivery address.

Of course, an advantage to being registered to collect sales/use tax is that purchases of goods for resale is usually tax exempt. I assume California works in a similar fashion in that respect.

[AddyGirl]

Hello ,all! I just opened up here from being a new Seller on eeee***bucks, and am learning quickly.

EXCEPT; SALES TAX. There are many tax rates for different zips or jurisdictions; as well, my state has a clothing exemption that varies from juri to juri. Can't overcharge or undercharge. What to do??? Thanks!

[Policequilts]

@cabbagepatchdolls

I build the sales tax into the price of the item. At the end of the year, I divide the sales tax out.

The county I am in charges .5% extra.
An item that is $100.00 is then taxed at 5.5% = $105.50 for the price. (I will price a tad higher for any errors).
The extra will cover for any errors.
Then at the end of the year, your total sales is $105.50, then divide this by 1.055 equals $100.
You take $105.50, total sales, minus $100, net sales, equal $5.50 is the sales tax you collected.

I would do this for my mom when she would go to craft shows. The total price of the items had the built in sales tax.

[AddyGirl]

Thank you, Policequilts!
Ok - just a follow-up stupid question (what the hey...) I was told by NYS on the phone that I was required to charge the correct ST.
SOooo... she didn't say anything about actually posting ST; therefore, I don't have to show it in my online listing?
My Q is: mightn't we get into trouble if it is not separated and specified in our listings?

Also: do you include the ST as you said only by invoice? What if someone from a different state purchases?

I'm not judging; just trying to learn what to do and how to do it best.

Just a bit nervous about ST. Thanks for your patient indulgence. :0