eBay adding "Sales tax" for buyer in the US

[love_of_cars]

I went to invoice a buyer in the US who hasn't paid for an item and saw it added "Sales tax".  I have never seen this before.  I was wondering if someone knows what it is.

It doesn't appear to be GST-related as it's not 10% or a division by 11.  Is it tax added for the buyer's local importing tax?

Subtotal (1 item)AU $36.00

Postage via Australia Post Air Mail ParcelAU $19.00

Sales tax:AU $4.35

Estimated total AU $59.35

Thanks!

[lyndal1838 · Accepted solution]

It would be the sales tax applicable in the buyer's home state.

I imagine ebay would be responsible for that just as they are responsible for GST on items coming into Australia through their portal.

Overseas sellers will have no idea about GST, as you are not aware of the sales tax in their state.

[gutterpunkz05]

Have a vague recollection of some US states requiring sales tax to be collected.  Similar to Australia requiring  GST to be collected on overseas purchases.

[digital*ghost]

This varies state by state - it started with just one, now more than 20 US states collect tax this way. The buyers will be aware of it, at least, so it won't be a nasty surprise for them or anything. 

This is yet another reason not to alter addresses post-sale (I sell internationally on another site that collects taxes from sales as well - I get some US buyers using a delivery address in a state that doesn't have sales tax applied, and then trying to request I ship instead to a state where it would have been applied -  I always cancel the orders and make them purchase again, not that I necessarily feel duty-bound to ensure the US gov. gets their $2, but since I'm using a third-party site where full records of this stuff is available, I don't want any indication that I'm participating in or facilitating any form of tax evasion).

[love_of_cars]

Thanks for the replies, that's pretty much what I thought it was.  Damn, that's gonna impact my sales to the US which has almost always been my #1 market. 😞

[lyndal1838]

But most states have had their sales tax in operation for many years.

I doubt that it is new to your US buyers....they must have been paying it somehow if not through ebay.

[whoisbiggles]

In the US the Supreme Court has upheld a ruling to allow states to collect sales tax on online sales.

This has been a "thing" for the last couple of months.

[brerrabbit585]

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@lyndal1838 wrote:

But most states have had their sales tax in operation for many years.

I doubt that it is new to your US buyers....they must have been paying it somehow if not through ebay.

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I thought they previously only paid it if the buyer was in the same state as the seller.

The buyers will be aware of it, at least, so it won't be a nasty surprise for them or anything. 

Yeah, like all Aussies are aware they have to pay GST on overseas purchases.  

[digital*ghost]

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@brerrabbit585 wrote:

The buyers will be aware of it, at least, so it won't be a nasty surprise for them or anything. 

Yeah, like all Aussies are aware they have to pay GST on overseas purchases.  

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It's not really the same - in Australia, the vast majority of prices are listed inclusive of GST, so a price plus GST is something new.

In the US sales tax is always added on afterwards, so price + sales tax is not new.