Sales Tax for online orders
I just ordered an item here on Agon. The invoice is showing sales tax ($26.00) and a service charge ($2.99). I live in SC and the vendor is in PA. Kind of surprised as I thought sales tax was only applied when you purchase and pick up in the same state? And, the ad doesn't state sales tax and service charge will be applied. Should sales tax be applied in this application?
There is no sales tax for items bought between states. However, states differ on their online sales tax rules. I find it repulsive that online retailers like eBay, etc. were all excited to become tax collectors. Retailers that charge sales tax and pocket the money can be prosecuted if they are caught. Retail sales are very hard to track/audit. Most retailers will knock off the tax if you pay cash. That should tell you something. Perhaps several somethings. |
@yesiam_a_pirate" There is no sales tax for items bought between states.Do You Charge Sales Tax on Items Shipped Out of State? + FAQs"
Yes, in some cases, sales tax must be charged on items shipped out of state. In fact, 45 states (plus Washington, D.C.) now require out-of-state sellers to collect sales tax, generating over $23 billion from remote sales in 2021 alone |
Most states are requiring taxes be paid for internet sales whether in state or out of state. Since most of the audio related businesses are small companies, they often outsource the tax collection and reporting to companies like Taxjar....but there are many others and most sellers discuss their tax policy somewhere in their "fine print" pages. As for fees, Audiogon lists all of its fees upfront but you have go go to he help page to get the link to the fees page. https://support.audiogon.com/hc/en-us
|
There are a couple of issues at play here. If the selling party has economic Nexus with your state they are required to collect and remit sales tax to your state. Thresholds vary by state, but generally if the seller exceeds a certain number of transaction or a dollar threshold they are required to collect and remit sales tax. Audiogon as an online market place facilitator is subject to the same rules and thresholds if they facilitate transactions and also process the payment transactions. |
