| Discussion Forum: Thread 327948 |
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| | | Author: | CCBricks  | | Posted: | Oct 2, 2022 11:28 | | Subject: | Seller Exemption Status/Process | | Viewed: | 189 times | | Topic: | Taxes | |
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| Has anyone heard anything regarding the sales tax exemtion for stores? If BL
is collecting the sales tax (and remitting it back to our respective states),
should we not be allowed to be exempt from paying sales tax for inventory being
resold?
Maybe this is in the works? 🤔
Brian
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| | | | | Author: | Shiny_Stuff | | Posted: | Oct 2, 2022 13:11 | | Subject: | Re: Seller Exemption Status/Process | | Viewed: | 65 times | | Topic: | Taxes | |
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| In Taxes, CCBricks writes:
| | Has anyone heard anything regarding the sales tax exemtion for stores? If BL
is collecting the sales tax (and remitting it back to our respective states),
should we not be allowed to be exempt from paying sales tax for inventory being
resold?
Maybe this is in the works? 🤔
Brian
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It would be nice. BL sellers and buyers could use some sale tax relief.
BL is likely making a nice profit by collecting the ENTIRE sales tax amount and
not sharing any of it with BL sellers. And it is the BL sellers who are paying
the (Paypal) fees on these sales taxes.
In most (all?) US states that have a sales tax (for internet commerce), the merchant
who collects the taxes on behalf of the state gets to keep a certain percentage
of that tax money for their efforts to do the collecting and accounting and submitting
of the tax. As BL is the merchant, they are the ones doing the record keeping
and submission of the tax to tax authorities, but it is BL sellers who actually
do the collecting on behalf of BL. And, as I said, BL sellers are the ones paying
the Paypal fees on those tax funds.
As for the issue of sales tax exemptions for BL buyers, that would be beneficial
for anyone who is also a re-seller (on BL or anywhere) and also for non-profit
based buyers such as schools and school teachers or First Lego League organizations,
etc who are legally exempt from having to pay sales taxes.
Basically, anyone who has a legal tax exemption should be able to present these
credentials to BrickLink and avoid paying sales tax on purchases. It should
be part of a users account profile so that their exemption is automatically recognized
each time they place an order. It may require a (legal) confirmation step, such
as asking if this particular purchase is for personal use (Taxable) versus for
business or educational or other tax-exempt purposes (Non-Taxable).
At this time, I am guessing that taxes paid that are not legally required to
be paid can be claimed against taxes paid (in the form of tax rebates). That
action is for each individual user to deal with.
Taxes are a complicated matter. For our BL corporate owner (THE LEGO GROUP),
I am sure it is just easier to collect taxes from everybody until such time
that their team of lawyers and tax attorneys can figure out how to manage the
more complicated details of who is and who is not required to pay such taxes,
involving all possible tax jurisdictions and tax rules from all over the world.
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| | | | | | | Author: | peregrinator | | Posted: | Oct 2, 2022 13:35 | | Subject: | Re: Seller Exemption Status/Process | | Viewed: | 46 times | | Topic: | Taxes | |
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| In Taxes, Shiny_Stuff writes:
| | BL is likely making a nice profit by collecting the ENTIRE sales tax amount and
not sharing any of it with BL sellers. And it is the BL sellers who are paying
the (Paypal) fees on these sales taxes.
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Sorry, where would the profit be for BL when they remit the sales tax to the
State?
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| | | | | | | | | Author: | Shiny_Stuff | | Posted: | Oct 2, 2022 14:07 | | Subject: | Re: Seller Exemption Status/Process | | Viewed: | 64 times | | Topic: | Taxes | |
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| In Taxes, peregrinator writes:
| | In Taxes, Shiny_Stuff writes:
| | BL is likely making a nice profit by collecting the ENTIRE sales tax amount and
not sharing any of it with BL sellers. And it is the BL sellers who are paying
the (Paypal) fees on these sales taxes.
|
Sorry, where would the profit be for BL when they remit the sales tax to the
State?
|
Most (all?) states allow the merchants who collect the sales tax to keep a portion
of that tax.
For example, if the sales tax in a jurisdiction is 8 percent, the merchant charges
his customers the 8 percent, but gets to keep a portion, such as 1.5 percent,
and they only send in 6.5 percent to the state tax authority. So, for every
$100 in taxes that BL takes in, they get to keep 15 dollars.
For an entity as big as BrickLink, the amount of tax they get to keep should
far outweigh their actual costs to deal with it. Leaving some amount as profit
or perhaps a better term would be additional or remainder revenue.
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| | | | | | | | | | | Author: | macebobo | | Posted: | Oct 2, 2022 14:17 | | Subject: | Re: Seller Exemption Status/Process | | Viewed: | 48 times | | Topic: | Taxes | |
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| In Taxes, Shiny_Stuff writes:
| | In Taxes, peregrinator writes:
| | In Taxes, Shiny_Stuff writes:
| | BL is likely making a nice profit by collecting the ENTIRE sales tax amount and
not sharing any of it with BL sellers. And it is the BL sellers who are paying
the (Paypal) fees on these sales taxes.
|
Sorry, where would the profit be for BL when they remit the sales tax to the
State?
|
Most (all?) states allow the merchants who collect the sales tax to keep a portion
of that tax.
For example, if the sales tax in a jurisdiction is 8 percent, the merchant charges
his customers the 8 percent, but gets to keep a portion, such as 1.5 percent,
and they only send in 6.5 percent to the state tax authority. So, for every
$100 in taxes that BL takes in, they get to keep 15 dollars.
For an entity as big as BrickLink, the amount of tax they get to keep should
far outweigh their actual costs to deal with it. Leaving some amount as profit
or perhaps a better term would be additional or remainder revenue.
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State equalization board citation required.
Any time I filed my sales tax reports in California, I did not get to keep even
a penny. So, I'm going to need some proof otherwise...
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| | | | | | | | | | | Author: | peregrinator | | Posted: | Oct 2, 2022 14:19 | | Subject: | Re: Seller Exemption Status/Process | | Viewed: | 61 times | | Topic: | Taxes | |
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| In Taxes, Shiny_Stuff writes:
| | Most (all?) states allow the merchants who collect the sales tax to keep a portion
of that tax.
For example, if the sales tax in a jurisdiction is 8 percent, the merchant charges
his customers the 8 percent, but gets to keep a portion, such as 1.5 percent,
and they only send in 6.5 percent to the state tax authority. So, for every
$100 in taxes that BL takes in, they get to keep 15 dollars.
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If there's a discount of 1.5% when remitting sales tax that's 1.5% of
the tax, not 1.5% of the purchase price of the goods. So in the above scenario,
collecting $100 in taxes would mean a discount of $1.50.
But BL also works with a third-party vendor to collect and remit sales tax -
they may well be the ones who are receiving any discounts.
(FWIW, there is no discount in my state - if I collect sales tax I remit the
full amount.)
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| | | | | Author: | watch505 | | Posted: | Oct 2, 2022 21:38 | | Subject: | Re: Seller Exemption Status/Process | | Viewed: | 41 times | | Topic: | Taxes | |
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| Bricklink has promised sales Tax exemptions for buyers on the forums almost 2
years ago.
They then held a roundtable in January and communicated that it was on their
radar. Silence sense then...
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| | | | | Author: | cosmicray | | Posted: | Oct 3, 2022 19:43 | | Subject: | Re: Seller Exemption Status/Process | | Viewed: | 39 times | | Topic: | Taxes | |
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| In Taxes, CCBricks writes:
| | Has anyone heard anything regarding the sales tax exemtion for stores? If BL
is collecting the sales tax (and remitting it back to our respective states),
should we not be allowed to be exempt from paying sales tax for inventory being
resold?
Maybe this is in the works? 🤔
Brian
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That would be where a seller (acting as a buyer) buys from another seller, and
then has to select a (currently non-existent) B2C or B2B option. The B2B would,
in theory, specify that the purchaser has been granted permission to buy for
resale without tax being charged. This exists in B&M retail, provided that the
selling store accepts a reseller certificate.
Nita Rae
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| | | | | | | Author: | Nubs_Select | | Posted: | Oct 3, 2022 19:48 | | Subject: | Re: Seller Exemption Status/Process | | Viewed: | 46 times | | Topic: | Taxes | |
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| and then you have Canada where I don't even know if its an option to not
pay tax when buying inventory 
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USA, Florida
Canada, Ontario