With the new requirement that Bonanza collect taxes on behalf of 4 States, and I’m sure there are more States to follow. The question came up, regarding how we ship. Since I’ve offered free shipping, flat, and calculated, depending what items I am selling. Is, there a general rule as to which is better for the buyer when it comes to paying taxes on shipping?
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tegger Reputation: 44 See tegger's booth |
I was just trying to edit my question, to clarify, what I was asking.
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tegger Reputation: 44 See tegger's booth |
My opinion would be the option which routinely charges the least amount or the closest to actual shipping cost would be the best.
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MommyOf2QTsScentWork Reputation: 76 See MommyOf2QTsScentWork's booth |
Why are they charging taxes on shipping? That seems illegal
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Tidewater50 Reputation: 22 See Tidewater50's booth |
2 Comment
There are some states that do charge taxes on shipping as well as the item.
I usually charge a flat rate..I have found that mostly calc shipping costs on many sites using USPS webtools charge retail shipping prices and since I print shipping at PayPal, I get USPS commerical base prices which are some what less (not includes the big sites..since they have a whole different set up with USPS to get deeper discounts). And in many cases I pick up a small portion of shipping..it happens…
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ccmom Reputation: 12648 See ccmom's booth |
So, Paypal will charge a little extra based on the sales, tax, too? But not Bonanza..no extra FVF on that hopefully?
I do declare that if this is the case, we are charged as sellers every which way….but all we can do is pass it onto the buyers.
Try like heck to buy cheap in order to sell decent at least.
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EmpressDepot Reputation: 7344 See EmpressDepot's booth |
4 Comment
I was thinking about that very thing. I know NJ does not assess sales tax on services and I believe (although I haven’t had a chance to confirm) that shipping would be a service. With that in mind, I believe “free” shipping would effectively lead to a slightly higher price for buyers.
I hadn’t thought about the paypal charge on the tax. In NJ sales tax is 6.625%. If I sell a $25 taxable item, then the tax is $1.66 and paypal’s share of that is 5 cents. If you’re selling generally higher priced items, then this could amount to a bit of change, but for me it’s not a big deal. According to an article I just read, Tennessee has possible sales tax rates above 9.75% but this would still just amount to 7 cents lost to paypal in a $25 taxable transaction.
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AbbysAttic Reputation: 395 See AbbysAttic's booth |
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