Why does Amazon and eBay not charge Sales Tax?
I have been buying from eBay and Amazon sellers for years. I always wondered why they do not collect tax. Is there some type of law that says you have to pay uncollected sales tax? Has anyone ever been billed for uncollected sales tax from online purchases?
- NALv 76 years agoFavorite Answer
If Amazon has a warehouse in your state, you will be charged sales tax. If Amazon does NOT have a presence, you, the consumer are liable for the tax, now called a use tax. Many states have a line on their state tax return for you to enter an amount and stay legal.
If a seller on eBay has a presence, they too are subject to the law. If a seller is occasionally reselling their old junk, they state may not care if they don't collect it.
As for uncollected taxes, many states have been issuing subpoenas to tobacco vendors to get the names and addresses of the people from their state. The state compares the names and addresses to the use tax lists and if they can't find the person has paid, will send a bill with penalty and interest.
- MLv 66 years ago
Just going to add to NA's excellent answer. Don't be surprised if you buy an item from a seller on ebay or Amazon & you get charged sales tax if the seller lives in your state because most sellers are required by state law to pay sales tax on items they sell which are shipped to an address in the same state they do business in -- unless its only an occasional sale & they do NOT sell on any type of reg basis..
Otherwise you are on the honor system & you're supposed to pay use tax to your state at the end of the year for any taxable purchase you made on line which your were not charged sales tax on.
- troLv 76 years ago
if there is no nexus in your state they do not charge sales tax
there was a big turmoil a yr or so ago about Amazon and in some cases Amazon has been required to charge sales tax
on EBay, they as a corporate business do not actually sell you anything, only the people who advertise their stuff on their site, and if seller is in your state they should have a tax id number of your state to charge and collect sales tax for your state
- JudyLv 76 years ago
Amazon does in many states, to buers anywhere they have some kind of facility. On ebay, depends who you're buying from, where they are and where you are.
NA, as usual, gives a good exxplanation.