im new to online shopping and just started to buy on ebay.. a friend told me that next year when i go do my taxes i would have too pay cause you don't pay tax.. i assume this only apply for ebay shopping cause i don't pay sale taxes but my other online purchases i have made i had to pay sale taxes... so could someone please tell me how this all works out.
2007-05-01 05:01:55 · 6 answers · asked by thomas g 2 in Business & Finance ➔ Taxes ➔ United States
i ment when i go and file taxes every april.. does that effect me on the amount i would have coming back to me each year ? does it mean i have to pay up ?
2007-05-01 05:27:06 · update #1
For Federal taxes, on-line sales have no effect. What your friend is probably referring to is a state 'use tax'. Most states that have a sales tax also have a use tax at the same rate that applies to items purchased out of state and brought into the state. If you paid sales tax to another state, that item is usually exempt from use tax. Both the sales and use taxes generally only apply to NEW items. If you are buying used goods , you should not have to worry.
Historically, use taxes have been very hard to enforce. Many states are working on enforcement for on-line stores, but private E-Bay sales are not likely to draw attention.
2007-05-01 12:16:34 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
I disagree with the person who said you don't have to worry about use tax if the items are used. If you go to a second hand store in your state and buy goods, they charge sales tax. It's the same thing with buying used goods on-line. You are responsible for the use tax. Many states are now putting a line on their income tax returns for people to declare the use tax liability. They usually have an option to pay a standard amount based on your income. Since the income tax return is signed under penalty of perjury, if you file it without declaring use tax that you legally owe, you could be prosecuted under the provisions of the state's income tax law. In practice, they would probably just bill you for the tax and if you pay, they go on their merry way. States are all in a cash crunch these days and are aggressively looking for ways to enforce the provisions they already have. It's more politically acceptable than raising other taxes.
2007-05-01 14:09:43 · answer #2 · answered by dwagsfive 2 · 0⤊ 0⤋
Hi there, Yes you have to pay taxes even after VAT. VAT can be combined in selling price of the product. But that the value added tax for that product. The other thing is your Income Tax which you are gaining after selling the product and gaining profit from the same.
2016-05-18 00:26:59 · answer #3 · answered by ? 3 · 0⤊ 0⤋
If you're buying on ebay, no it doesn't have any effect when you get your income taxes done. If you're selling, and it's become a business for you (you're making a profit or trying to) then yes, you'd report the business income and expenses.
2007-05-01 10:03:19 · answer #4 · answered by Judy 7 · 0⤊ 1⤋
No you won't have to pay taxes for things your purchased online. You only pay taxes if you are employed.
2007-05-01 05:10:54 · answer #5 · answered by sappergirl 3 · 0⤊ 1⤋
Amazon.com doesnt charge any taxes at all. I do all my online shopping there.
2007-05-01 05:08:50 · answer #6 · answered by Mr. Wizard 2 · 0⤊ 1⤋