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| | | Author: | susan.maly  | | Posted: | Aug 1, 2021 19:21 | | Subject: | Taxes | | Viewed: | 190 times | | Topic: | Sales | |
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| I live in Colorado and so I am just now being taxed by the state for LEGO purchases.
The rate I am being taxed at is WIDELY different for one seller to the next.
Can someone please clarify? A google search showed me that they should collect
taxes on shipping...but the spread is 10 to 15% taxes on my purchases! Much more
that the city of Denver sales tax.Would like to understand
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| | | | | Author: | tjb01527 | | Posted: | Aug 2, 2021 04:00 | | Subject: | Re: Taxes | | Viewed: | 59 times | | Topic: | Sales | |
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| As most of my transactions are via Paypal, I get charged by Paypal for collecting
tax fees!! You could never have predicted this.
In Sales, susan.maly writes:
| | I live in Colorado and so I am just now being taxed by the state for LEGO purchases.
The rate I am being taxed at is WIDELY different for one seller to the next.
Can someone please clarify? A google search showed me that they should collect
taxes on shipping...but the spread is 10 to 15% taxes on my purchases! Much more
that the city of Denver sales tax.Would like to understand
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| | | | | | | Author: | yorbrick | | Posted: | Aug 2, 2021 04:17 | | Subject: | Re: Taxes | | Viewed: | 56 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | As most of my transactions are via Paypal, I get charged by Paypal for collecting
tax fees!! You could never have predicted this.
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They did say this would happen prior to it going live.
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| | | | | | | | | Author: | tjb01527 | | Posted: | Aug 2, 2021 06:51 | | Subject: | Re: Taxes | | Viewed: | 52 times | | Topic: | Sales | |
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| That does not make it right! They need to revisit it. I have now questioned this
with admin. Paying VAT or Taxes is one thing, being charged to collect them is
another.
In Sales, yorbrick writes:
| | In Sales, tjb01527 writes:
| | As most of my transactions are via Paypal, I get charged by Paypal for collecting
tax fees!! You could never have predicted this.
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They did say this would happen prior to it going live.
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| | | | | | | | | | | Author: | yorbrick | | Posted: | Aug 2, 2021 06:56 | | Subject: | Re: Taxes | | Viewed: | 48 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | That does not make it right! They need to revisit it. I have now questioned this
with admin. Paying VAT or Taxes is one thing, being charged to collect them is
another.
In Sales, yorbrick writes:
| | In Sales, tjb01527 writes:
| | As most of my transactions are via Paypal, I get charged by Paypal for collecting
tax fees!! You could never have predicted this.
|
They did say this would happen prior to it going live.
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They said that (at least for US sales tax calculations) this is because they
were paying for the tax calculation. It happens for any retailer though. When
you pay for something including VAT, the PayPal fees are charged on the whole
transaction amount, not the ex-VAT amount.
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| | | | | | | | | | | | | Author: | peregrinator | | Posted: | Aug 2, 2021 07:34 | | Subject: | Re: Taxes | | Viewed: | 41 times | | Topic: | Sales | |
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| In Sales, yorbrick writes:
| | They said that (at least for US sales tax calculations) this is because they
were paying for the tax calculation. It happens for any retailer though. When
you pay for something including VAT, the PayPal fees are charged on the whole
transaction amount, not the ex-VAT amount.
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I can confirm that eBay also charges to collect sales tax - that is, they assess
their fee on the whole amount, just as PayPal does, and then take out the tax.
The difference is that their fee is much higher (12.55%).
So if I sell something worth $100 on eBay, and the sales tax on it is $10, the
eBay fee on that transaction is $13.81 not $12.55.
BL's fee to enable the collection of sales tax is **much** lower.
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| | | | | | | | | | | | | Author: | tjb01527 | | Posted: | Aug 2, 2021 10:13 | | Subject: | Re: Taxes | | Viewed: | 47 times | | Topic: | Sales | |
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| So a buyer has to pay his/her state taxes and I have to pay to collect them and
people agree with this!! Blimey, why not send me the bill for the delivery of
Boris's wall paper! You get taxed on your wage. You get taxed when you buy.
You get taxed when you save. Now people are happy to collect taxes and pay to
do it. Sorry, there is no logic to this. Some people get sucked into anything.
In Sales, yorbrick writes:
| | In Sales, tjb01527 writes:
| | That does not make it right! They need to revisit it. I have now questioned this
with admin. Paying VAT or Taxes is one thing, being charged to collect them is
another.
In Sales, yorbrick writes:
| | In Sales, tjb01527 writes:
| | As most of my transactions are via Paypal, I get charged by Paypal for collecting
tax fees!! You could never have predicted this.
|
They did say this would happen prior to it going live.
|
|
They said that (at least for US sales tax calculations) this is because they
were paying for the tax calculation. It happens for any retailer though. When
you pay for something including VAT, the PayPal fees are charged on the whole
transaction amount, not the ex-VAT amount.
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| | | | | | | | | | | | | | | Author: | yorbrick | | Posted: | Aug 2, 2021 11:35 | | Subject: | Re: Taxes | | Viewed: | 44 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | So a buyer has to pay his/her state taxes and I have to pay to collect them and
people agree with this!! Blimey, why not send me the bill for the delivery of
Boris's wall paper! You get taxed on your wage. You get taxed when you buy.
You get taxed when you save. Now people are happy to collect taxes and pay to
do it. Sorry, there is no logic to this. Some people get sucked into anything.
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It was pointed out at the time, and BL justified it through the costs of them
outsourcing the costs and the collection/paperwork of VAT. Sellers are not collecting
the tax, they are getting someone else to collect it. Even if you collected it
yourself, you'd still pay PayPal fees on the vat element.
If you don't want yo pay the fees on the tax, you can charge a higher handling
fee to cover it for US and EU orders, although then you'd also pay extra
fees on the handling fee too just that the buyer compensates you for it. Or don't
sell to those countries.
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| | | | | | | | | | | | | | | | | Author: | tjb01527 | | Posted: | Aug 2, 2021 12:08 | | Subject: | Re: Taxes | | Viewed: | 47 times | | Topic: | Sales | |
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| You are perhaps missing the point. It is not down to me to pay to collect taxes
for the US or anyone else. BL/Lego should charge the US states to collect the
fees. We could argue all day about taxes. Whilst I am not a fan, I will pay them
but I will not just smile when I get charged over £8 by Paypal to collect US
taxes. I certainly am not going to start charging fees to buyers to cover them.
I know a lot of sellers charge silly fees, but I NEVER will. I don't go to
a supermarket checkout to be told there is an extra fee on my shopping bill.
So I will not do that to my buyers. If we all sit back & never complain, Governments
will just keep increasing taxes. But to make me pay is totally unfair.
In Sales, yorbrick writes:
| | In Sales, tjb01527 writes:
| | So a buyer has to pay his/her state taxes and I have to pay to collect them and
people agree with this!! Blimey, why not send me the bill for the delivery of
Boris's wall paper! You get taxed on your wage. You get taxed when you buy.
You get taxed when you save. Now people are happy to collect taxes and pay to
do it. Sorry, there is no logic to this. Some people get sucked into anything.
|
It was pointed out at the time, and BL justified it through the costs of them
outsourcing the costs and the collection/paperwork of VAT. Sellers are not collecting
the tax, they are getting someone else to collect it. Even if you collected it
yourself, you'd still pay PayPal fees on the vat element.
If you don't want yo pay the fees on the tax, you can charge a higher handling
fee to cover it for US and EU orders, although then you'd also pay extra
fees on the handling fee too just that the buyer compensates you for it. Or don't
sell to those countries.
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| | | | | | | | | | | | | | | | | | | Author: | peregrinator | | Posted: | Aug 2, 2021 12:15 | | Subject: | Re: Taxes | | Viewed: | 39 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | You are perhaps missing the point. It is not down to me to pay to collect taxes
for the US or anyone else. BL/Lego should charge the US states to collect the
fees. We could argue all day about taxes. Whilst I am not a fan, I will pay them
but I will not just smile when I get charged over £8 by Paypal to collect US
taxes. I certainly am not going to start charging fees to buyers to cover them.
I know a lot of sellers charge silly fees, but I NEVER will. I don't go to
a supermarket checkout to be told there is an extra fee on my shopping bill.
So I will not do that to my buyers. If we all sit back & never complain, Governments
will just keep increasing taxes. But to make me pay is totally unfair.
|
Unless the sales tax on the order was around £200, you did not get charged over
£8 for PayPal to collect the U.S. sales tax. I'm guessing that the £8 was
the sum of the sales tax (which doesn't belong to you, so you weren't
charged for it) as well as the small fee for PayPal/BrickLink to collect it.
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| | | | | | | | | | | | | | | | | | | | | Author: | tjb01527 | | Posted: | Aug 3, 2021 06:01 | | Subject: | Re: Taxes | | Viewed: | 36 times | | Topic: | Sales | |
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| The order was well over £1k. I was charged for the collection of fees. Wish I
had shares in Paypal!! Well perhaps not since they lost Ebay.
In Sales, peregrinator writes:
| | In Sales, tjb01527 writes:
| | You are perhaps missing the point. It is not down to me to pay to collect taxes
for the US or anyone else. BL/Lego should charge the US states to collect the
fees. We could argue all day about taxes. Whilst I am not a fan, I will pay them
but I will not just smile when I get charged over £8 by Paypal to collect US
taxes. I certainly am not going to start charging fees to buyers to cover them.
I know a lot of sellers charge silly fees, but I NEVER will. I don't go to
a supermarket checkout to be told there is an extra fee on my shopping bill.
So I will not do that to my buyers. If we all sit back & never complain, Governments
will just keep increasing taxes. But to make me pay is totally unfair.
|
Unless the sales tax on the order was around £200, you did not get charged over
£8 for PayPal to collect the U.S. sales tax. I'm guessing that the £8 was
the sum of the sales tax (which doesn't belong to you, so you weren't
charged for it) as well as the small fee for PayPal/BrickLink to collect it.
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| | | | | | | | | | | | | | | | | | | | | | | Author: | peregrinator | | Posted: | Aug 3, 2021 08:45 | | Subject: | Re: Taxes | | Viewed: | 31 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | The order was well over £1k. I was charged for the collection of fees. Wish I
had shares in Paypal!! Well perhaps not since they lost Ebay.
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Hmmm, well, I'd be happy to pay £8 for someone to place an order of well
over £1k in my store
Just set your prices accordingly - with the knowledge that you'll have to
pay a small fee to sell to the USA and EU. You can always offer a discount to
domestic buyers (e.g. free shipping).
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| | | | | | | | | | | | | | | | | | | | | | | | | Author: | tjb01527 | | Posted: | Aug 4, 2021 02:37 | | Subject: | Re: Taxes | | Viewed: | 30 times | | Topic: | Sales | |
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| I do not charge fees other than a very small packaging fee. That is one of the
problems with BL, some sellers add silly fees such as Paypal. I was once told
by someone that he charged Petrol money to go to the post office! I am a fan
of America, some great people there but paying to collect your taxes is a cheek.
In Sales, peregrinator writes:
| | In Sales, tjb01527 writes:
| | The order was well over £1k. I was charged for the collection of fees. Wish I
had shares in Paypal!! Well perhaps not since they lost Ebay.
|
Hmmm, well, I'd be happy to pay £8 for someone to place an order of well
over £1k in my store
Just set your prices accordingly - with the knowledge that you'll have to
pay a small fee to sell to the USA and EU. You can always offer a discount to
domestic buyers (e.g. free shipping).
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| | | | | | | | | | | | | | | | | | | | | | | | | | | Author: | SylvainLS | | Posted: | Aug 4, 2021 03:35 | | Subject: | Re: Taxes | | Viewed: | 30 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | I do not charge fees other than a very small packaging fee. That is one of the
problems with BL, some sellers add silly fees such as Paypal. I was once told
by someone that he charged Petrol money to go to the post office! I am a fan
of America, some great people there but paying to collect your taxes is a cheek.
|
First, I would stress that it’s not only the USA, it’s also UK and EU countries
(and others, but not yet on BL). It’s worldwide.
Non-UK sellers selling to you (or your compatriots) have to pay the PayPal fees
on the 20% UK VAT BL collects for your gouvernment.
Then, the gouvernments don’t make you pay to collect their taxes, they force
BL to collect the taxes and, incidentally, there’s fees on money transfers and
the seller is the one who pays those fees.
Like all regulations, compliance means work and time, and work and time means
money, and someone has to pay.
For BL sales, that someone is the seller. And if BL were to pay the PayPal fees
on the added taxes directly, they would have to recoup them some way (that is,
increasing their fee on all sales or only on taxed sales, but increasing their
fee nonetheless) and, in the end, the seller’d still have to pay for those fees.
Finally, any way you look at it, all the money eventually comes from the buyer,
so it’s the buyer who pays, not the seller, and I believe that was peregrinator’s
point: if you want more money in your pocket once everyone has taken their due,
increase your prices.
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| | | | | | | | | | | | | | | | | | | Author: | yorbrick | | Posted: | Aug 2, 2021 13:06 | | Subject: | Re: Taxes | | Viewed: | 42 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | You are perhaps missing the point. It is not down to me to pay to collect taxes
for the US or anyone else.
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Yes it is down to you, if you want access to the US (or other) markets.
It used to be that sellers could just post stuff around the world and leave it
to the buyer to pay any taxes due. That has changed. Fortunately for sellers
using marketplaces it is simple if they collect it so we do not have to register
for tax collection in each country/state.
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| | | | | | | | | | | | | | | | | | | | | Author: | tjb01527 | | Posted: | Aug 2, 2021 13:18 | | Subject: | Re: Taxes | | Viewed: | 32 times | | Topic: | Sales | |
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| I get that, but you stray from the point. Paying to collect USA taxes!! They
have a heart attack if the UK dare tax their companies.
In Sales, yorbrick writes:
| | In Sales, tjb01527 writes:
| | You are perhaps missing the point. It is not down to me to pay to collect taxes
for the US or anyone else.
|
Yes it is down to you, if you want access to the US (or other) markets.
It used to be that sellers could just post stuff around the world and leave it
to the buyer to pay any taxes due. That has changed. Fortunately for sellers
using marketplaces it is simple if they collect it so we do not have to register
for tax collection in each country/state.
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| | | | | | | | | | | | | | | Author: | Fr0stByt3 | | Posted: | Aug 3, 2021 09:01 | | Subject: | Re: Taxes | | Viewed: | 35 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | So a buyer has to pay his/her state taxes and I have to pay to collect them and
people agree with this!! Blimey, why not send me the bill for the delivery of
Boris's wall paper! You get taxed on your wage. You get taxed when you buy.
You get taxed when you save. Now people are happy to collect taxes and pay to
do it. Sorry, there is no logic to this. Some people get sucked into anything.
|
Been upset about the online sales taxes my state started back in July to try
and fail to offset tax cuts for the wealthy. Used to be able to buy almost anything
online and not have to pay taxes on it so as long as the seller had no location
in my state so now I'm buying LEGO more from sites like Mercari that somehow
confused my state for Missouri and I'm not getting taxed to buy from. So
I feel you.
The real fun would be the government beginning to tax the heck out of people
selling on Craigslist or Facebook Marketplace, if you've got equivalent sites
in your country. Bet you they're going to attempt it.
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| | | | | | | | | | | Author: | 3001Bricks | | Posted: | Aug 2, 2021 08:24 | | Subject: | Re: Taxes | | Viewed: | 40 times | | Topic: | Sales | |
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| In Sales, tjb01527 writes:
| | That does not make it right! They need to revisit it. I have now questioned this
with admin. Paying VAT or Taxes is one thing, being charged to collect them is
another.
In Sales, yorbrick writes:
| | In Sales, tjb01527 writes:
| | As most of my transactions are via Paypal, I get charged by Paypal for collecting
tax fees!! You could never have predicted this.
|
They did say this would happen prior to it going live.
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Why is that not right? If you would handle the full tax admin yourself, you would
charge taxes, and you would pay your paypal/creditcard fees over the full amount
including taxes. The same with shipping, these costs are passed through, yet
you pay paypal/creditcard fees over those as well.
This is part of doing business. If you have a brick and mortar store, you would
also pay a 1-2% fee over every maestro or credit card transaction, including
the taxes you have to charge.
I'm happy I don't have to go through the hassle of doing the sales tax
admin myself in every single state. Happy to pay a few bucks to bricklink to
have them do it.
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| | | | | | | | | | | | | Author: | tjb01527 | | Posted: | Aug 3, 2021 10:07 | | Subject: | Re: Taxes | | Viewed: | 35 times | | Topic: | Sales | |
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| Why is not right? Have a think about it. Paying tax is one thing, then having
to pay to collect it is another. Goverment's should pay to collect their
own taxes. By the the time you get to spend your pound, you probably get about
5p out of it. But some people think that's okay!!
In Sales, Gmid writes:
| | In Sales, tjb01527 writes:
| | That does not make it right! They need to revisit it. I have now questioned this
with admin. Paying VAT or Taxes is one thing, being charged to collect them is
another.
In Sales, yorbrick writes:
| | In Sales, tjb01527 writes:
| | As most of my transactions are via Paypal, I get charged by Paypal for collecting
tax fees!! You could never have predicted this.
|
They did say this would happen prior to it going live.
|
|
Why is that not right? If you would handle the full tax admin yourself, you would
charge taxes, and you would pay your paypal/creditcard fees over the full amount
including taxes. The same with shipping, these costs are passed through, yet
you pay paypal/creditcard fees over those as well.
This is part of doing business. If you have a brick and mortar store, you would
also pay a 1-2% fee over every maestro or credit card transaction, including
the taxes you have to charge.
I'm happy I don't have to go through the hassle of doing the sales tax
admin myself in every single state. Happy to pay a few bucks to bricklink to
have them do it.
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| | | | | Author: | peregrinator | | Posted: | Aug 2, 2021 07:35 | | Subject: | Re: Taxes | | Viewed: | 35 times | | Topic: | Sales | |
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| In Sales, susan.maly writes:
| | I live in Colorado and so I am just now being taxed by the state for LEGO purchases.
The rate I am being taxed at is WIDELY different for one seller to the next.
Can someone please clarify? A google search showed me that they should collect
taxes on shipping...but the spread is 10 to 15% taxes on my purchases! Much more
that the city of Denver sales tax.Would like to understand
|
Can you give a couple of examples?
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USA, Colorado
United Kingdom, England
France, Nouvelle-Aquitaine
