We don't have sales tax here (although we used to). However, when we did have sales tax prior to 1999, it only applied at the wholesale stage, so was only paid on business to business transactions. Of course, it formed part of the price to the customer, but was calculated at an earlier stage of the supply chain on the wholesale selling price.
Sales tax was replaced with a Goods and Services Tax (GST), but it doesn't apply to non-business transactions. Only businesses with an annual turnover exceeding $75,000 have to register and pay it.
It would certainly annoy me if it was payable on private transactions!
Sales tax was replaced with a Goods and Services Tax (GST), but it doesn't apply to non-business transactions. Only businesses with an annual turnover exceeding $75,000 have to register and pay it.
It would certainly annoy me if it was payable on private transactions!
You guys in the USA are going to pay additional tariffs now as well. I don't think foreign suppliers will be able to absorb them. Another bummer.
We've had import duties for audio components for quite a while.
But for used stuff, I've bought them from Canada and Europe with no duties. They don't levy the import duties on used stuff that you buy from non commercial sources..
But for used stuff, I've bought them from Canada and Europe with no duties. They don't levy the import duties on used stuff that you buy from non commercial sources..
From what I've read, the tariffs will be in addition to existing duties and taxes on imports. I'm sure you know more about it than me though!
Canadians get hammered with taxes and duties over the border. Used is treated as new, and we pay taxes on the shipping .... and the taxes!!!
Canada is severely broken in that way. It is ugly and unfair.
Canada is severely broken in that way. It is ugly and unfair.
I do not have an ebay or Reverb store front, but I do dabble in buying broken gear and selling, as well as selling off junk I have around the house.
I handle the taxes on my "Hobby Sales" like stock gains/losses - sale cost minus the cost basis, shown on a simple spreadsheet, given to my tax accountant.
I do not know if you can offset a summed loss position from "Hobby Sales" against ordinary income, like you can with stock losses (you can still only offset $3000 of stock loss against ordinary income, which has been the antiquated law since the 1978 - don't get me started on this sham), but any accountant worth his weight in salt should know. I am not an accountant.
Taxes on Hobby sales is just annoying. But being a bit more organized and having that cost basis of all sold items helps. At end of year I do a little "Tax Loss Harvesting" on my Hobby sales.
Or just stick with local sales like Craigslist / OfferUp / Garage sales and save yourself the new tax headache.
I handle the taxes on my "Hobby Sales" like stock gains/losses - sale cost minus the cost basis, shown on a simple spreadsheet, given to my tax accountant.
I do not know if you can offset a summed loss position from "Hobby Sales" against ordinary income, like you can with stock losses (you can still only offset $3000 of stock loss against ordinary income, which has been the antiquated law since the 1978 - don't get me started on this sham), but any accountant worth his weight in salt should know. I am not an accountant.
Taxes on Hobby sales is just annoying. But being a bit more organized and having that cost basis of all sold items helps. At end of year I do a little "Tax Loss Harvesting" on my Hobby sales.
Or just stick with local sales like Craigslist / OfferUp / Garage sales and save yourself the new tax headache.
My bitch with eBay is their Global Shipping Program, which seems to be joyfully used by Americans who can't, or won't, do the necessary paperwork to ship an item to Canada by mail. Their GSP slows the arrival time and increases the cost. Even before the tariff issue I've stopped looking at anything on eBay from the US. (I believe eBay has implemented their GSP in the UK, too.)
I still file a 1040-C even though I have mostly shut down the webstore.
It's not just the echo from COVID, but one of the reasons that "Currency in Circulation" in the US has increased from $1.8tn to $2.35tn (2020 to 2025) is the gray-economy which is largely untaxed.
California's underground economy is estimated at $100bn to $150bn per year.
We have to deal with VAT for our European operations, then get a rebate for materials exported. Very complex and a lot of quacking ducks which need to be fed.
It's not just the echo from COVID, but one of the reasons that "Currency in Circulation" in the US has increased from $1.8tn to $2.35tn (2020 to 2025) is the gray-economy which is largely untaxed.
California's underground economy is estimated at $100bn to $150bn per year.
We have to deal with VAT for our European operations, then get a rebate for materials exported. Very complex and a lot of quacking ducks which need to be fed.
Foreign suppliers never absorb tariffs, the local importer has to pay them. Basically tariffs are a form of tax raised by a government of a country and paid by the consumers of that country.
There is talk that they are trying to make the situation even worse.
It has always been that you are supposed to pay sales tax on a private sale between two people that are essentially next door neighbors. Rent a space at the local flea market, you are supposed to report profits and pay the calculated state sales tax.
Now they want to go after any/all transaction they can identify. E.g. They are monitoring Venmo style transactions. Low dollar value Venmo transactions makes for a great to pay your baby sitter. The various taxing agencies will use their power to coerce banks into compliance and disclose transactions. At the end of the day, they want your baby sitter to report on their tax return the money you paid them to watch your toddler while you and the wife have a date night.
I do not want to go all Chicken Little over this. Say what you want about the Orange Man in the White House. We need to wait to see how all this shakes out.
It has always been that you are supposed to pay sales tax on a private sale between two people that are essentially next door neighbors. Rent a space at the local flea market, you are supposed to report profits and pay the calculated state sales tax.
Now they want to go after any/all transaction they can identify. E.g. They are monitoring Venmo style transactions. Low dollar value Venmo transactions makes for a great to pay your baby sitter. The various taxing agencies will use their power to coerce banks into compliance and disclose transactions. At the end of the day, they want your baby sitter to report on their tax return the money you paid them to watch your toddler while you and the wife have a date night.
I do not want to go all Chicken Little over this. Say what you want about the Orange Man in the White House. We need to wait to see how all this shakes out.
More convenient for you as the shipper, less convenient for me as the purchaser.
As far as I know, there has never been an exemption on sales tax for used items in the US.
All marketplaces that handle payments on behalf of the seller or buyer are required to collect sales tax.
It is as simple as that.
This isn't a US only issue, nor is it confined to a political leaning. Governments worldwide see the amount of money flowing through online classifieds and marketplaces, and want their cut.
All marketplaces that handle payments on behalf of the seller or buyer are required to collect sales tax.
It is as simple as that.
This isn't a US only issue, nor is it confined to a political leaning. Governments worldwide see the amount of money flowing through online classifieds and marketplaces, and want their cut.
True, but in Canada this was not always the case. Most times, they ignored small purchases of used stuff even once they decided to charge tax. Early it was aimed at retailers as part of there business. That is fair. But your average casual seller (their own stuff) ought to be exempt.
Jeez. What are you buying? All I pay on import is the GST. When I import metal chassis I sometimes pay a duty. Probably because the chassis are made of aluminum. Whoopti-doo.
The vast majority of my sales are outside of Canada so I get the vast majority of GST paid back at the end of the year.
Taxes are the price we pay to live in a civilized society.
Tom
This is false, although I know the point you are trying to make. If you are interested in the real economics, Google tax/tariff "incidence".
Here is a scholarly IMF article...
https://www.imf.org/external/pubs/ft/wp/2004/wp04182.pdf
Until the South Dakota vs Wayfair case, it was up to buyers to self declare, but yes they were supposed to.
By the way, you only need to pay sales tax on profitable items (in most states). Thus, something like a garage sale, where you are selling stuff used, for less than it cost, you wouldn't usually need to keep track of, nor pay, sales tax.
The problem for eBay and Amazon is that the RISK they face for tax fraud is huge, so they will add tax to everything. Even though technically, used stuff, is probably exempt.
USPS First Class is now tracked as well. And much lower cost. The GSP may be "very convenient" but it's also very expensive.
I used to use eBay quite a bit but don't much anymore. Like Amazon it's becoming a cesspool of cheap junk. And sometimes not all that cheap either. My eBay purchases made within the last many years have been from a local eWaste recycler who occasionally has good deals one computer gear and offers local pickup.
Tom
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