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e-bay taxing Pre-Owned watches?

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Nanook65

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Discussion starter · #1 ·
I guess it has been a while since I sold a watch on e-bay, but I now see another reason to keep my buying Pre-Owned watches to the WUS m2m forum.

Yesterday I sold a Seiko Gen 3 Sumo that I bought here for $550. It was really nice and has only been worn a few times. I am NOT buying and selling watches to make a profit. Like many others here I buy and sell as my eye desires. I wound up selling it for the exact price that I bought it for so I wound up losing out on e-bay and PayPal fees + what I paid for shipping on the front end. I completely expected this and I just consider that a cost of trying out a watch I want to try out. What I did not expect is to see that the buyer had to pay $45.20 in Taxes. I don't mind so much on this one as I am the seller, but If I was on the other end of this one it would make me think twice about buying on e-bay.

Seriously....another 8.2% tax on top of the already high 10% e-bay fees and 3% PayPal. dang...

Anyone else feel this is sort of wrong and taking advantage of people? Geez, they already got their tax on the the original purchase and now they are going to tax it again. Seems unfair. I guess they do it on Cars and Boats and such.. idk
 
#2 ·
The states are taxing you. Ebay is just collecting for them. Ebay stopped being an online garage sale 15 years ago unfortunately. You were supposed to be reporting online sales when you filed income taxes anyway.
 
#4 ·
Used items are still subject to sales tax in places that have sales tax and always have been. Likewise, many states have a use tax that you are supposed to pay on items purchased out of state (typically claimed on your annual income tax filing). That you neglected to claim or pay such taxes in the past doesn't mean they didn't exist. With the increase in e-commerce, local vendor losing business, and states losing sales tax revenue, because few people are claiming or paying taxes on online purchases, states have cracked down and forced online sales platforms to report, collect, and pay these taxes. A window many used to skirt paying taxes has simply closed.
 
#5 ·
I recently bought a watch on eBay at a price that I thought I could make a small profit on (at least enough to cover shipping and PayPal fees selling on WUS) if I didn’t like it. When I hit buy eBay came up with a warning “after you hit this button you are committed to buying”. I figured ok whatever. It wasn’t until after I hit ok that it informs me that I would have to pay sales tax and gave me the new total (sales tax in my area is just under 10%). So now a watch I thought I could break even on pretty easily will likely go for a loss. I get that you legally have to pay taxes, but I wish they were a little more transparent about what the overall cost will be before you are committed to buying


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#6 ·
badgerracer said:
I recently bought a watch on eBay at a price that I thought I could make a small profit on (at least enough to cover shipping and PayPal fees selling on WUS) if I didn't like it. When I hit buy eBay came up with a warning "after you hit this button you are committed to buying". I figured ok whatever. It wasn't until after I hit ok that it informs me that I would have to pay sales tax and gave me the new total (sales tax in my area is just under 10%). So now a watch I thought I could break even on pretty easily will likely go for a loss. I get that you legally have to pay taxes, but I wish they were a little more transparent about what the overall cost will be before you are committed to buying

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This seems a common complaint, and I struggle to understand it. If you go to a local shop and buy something, does the shop publish the final price, including sales tax, on the price tag, or do you not find out until after the cashier has rung it up and you've committed to buy what the final, out-the-door price is? In my experience, that's how sales taxes get applied in the US.
 
#7 · (Edited)
The only issue I have is that ebay charges the highest tax rate for my state which is roughly 10%. The sales tax I should pay is 7.5%. When I contacted ebay about the discrepancy I was told that it was their policy to charge for the highest rate in the state and my responsibility to file for a refund with the state at the end of the year. Needless to say I take that into consideration when looking at ebay prices.
 
#8 ·
Nanook65 said:
I guess it has been a while since I sold a watch on e-bay, but I now see another reason to keep my buying Pre-Owned watches to the WUS m2m forum.

Yesterday I sold a Seiko Gen 3 Sumo that I bought here for $550. It was really nice and has only been worn a few times. I am NOT buying and selling watches to make a profit. Like many others here I buy and sell as my eye desires. I wound up selling it for the exact price that I bought it for so I wound up losing out on e-bay and PayPal fees + what I paid for shipping on the front end. I completely expected this and I just consider that a cost of trying out a watch I want to try out. What I did not expect is to see that the buyer had to pay $45.20 in Taxes. I don't mind so much on this one as I am the seller, but If I was on the other end of this one it would make me think twice about buying on e-bay.

Seriously....another 8.2% tax on top of the already high 10% e-bay fees and 3% PayPal. dang...

Anyone else feel this is sort of wrong and taking advantage of people? Geez, they already got their tax on the the original purchase and now they are going to tax it again. Seems unfair. I guess they do it on Cars and Boats and such.. idk
Click to expand...
Have you not bought anything on Amazon, a brick and mortar auction or at a local business? It's a sale subject to tax in most states. Ebay has been collecting sales tax for quite a while.
 
#12 ·
A) You are not getting a thing from the "state" that is taxing you.
B) I seriously doubt EBay is sending all the tax money it is collecting to where it is supposed to go
C) They also tax you if you order from overseas. I am supposed to be able to import up to 450 USD in goods duty free.
 
#13 ·
Pallet Spoon said:
A) You are not getting a thing from the "state" that is taxing you.
B) I seriously doubt EBay is sending all the tax money it is collecting to where it is supposed to go
C) They also tax you if you order from overseas. I am supposed to be able to import up to 450 USD in goods duty free.
Click to expand...
You can import without paying federal import duty on something of that value, but depending on what state you live in, you may still be on the hook for use tax to your state. Technically, if you travel to another state for vacation and buy some souvenirs to take back home with you, you are on the hook to claim those and pay use tax if your state has such a tax (and I believe most states with sales tax have a use tax as well).
 
#15 ·
MX793 said:
If you go to a local shop and buy something, does the shop publish the final price, including sales tax, on the price tag, or do you not find out until after the cashier has rung it up and you've committed to buy what the final, out-the-door price is?
Click to expand...
You can look up your state + county (or local) tax online. For instance, Florida has a 6% state income tax and then you add your country tax (around 1% to 2.5%). Presumably any store/retail cashier will know off the top of their head what the complete, local sales tax rate is.

That said, I bought a Speedmaster from a Mayor's in Florida back in February which had their own method for calculating sales tax which I thought was bizarre. I don't quite recall, but they said it was 6% + a fixed amount if the purchase was over a certain amount. It came out to save ~$25-30 on my specific transaction so it's not clear why or how they do that with the state. Unless it's a "perk" to the consumer and Mayor's is eating the difference as a sales/marketing expense.

But either way, just simply ask before a purchase.
 
#16 ·
Seems basic ... but sales tax is a tax on a sale. They don't only apply to the sale of a brand new item and the State will collect a sales tax each and every time that item is sold. Just go to an antique store - besides some knick-knacks at the front counter, you may not find one 'brand new' item in the store, but sale tax is still collected.
 
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#17 ·
If I purchase a preowned watch through eBay outside of Canada I expect to pay duty or tax. This also applies to items other than watches. However, when I purchase a preowned watch in Canada there is no addition fee.
 
#18 ·
FatalException said:
I just can't believe pre-owned products are subject to tax in the us.

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Do antique shops in the UK not collect taxes? I've not been there in a while
 
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#19 ·
1981Eagle said:
Do antique shops in the UK not collect taxes? I've not been there in a while
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I just looked it up, apparently they do [emoji44] but private sellers can practically get away with selling what they like tax free. I wouldn't expect vat from a used watch on eBay. Although our system works a little different. The price you see is the price you pay. It's up to the seller to declare and pay it. eBay do report sellers to the tax man, a workmate got caught but he was turning over a lot of money through it.

I think in theory there are limits on private selling but you'd have to take the piss to get caught.

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#20 ·
If buying from a dealer, call him up, give him a valid address in DE/NH/AL, offer to pay in bank wire, and you're golden.

If buying from a private party, for high value items sneakily give him a number and offer to fly over to pick up the item in person. Works every time.
 
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