As currently defined, the Marketplace Fairness Act of 2013, if passed will require merchants in one state to collect tax on purchases made from a different state, even if there is no other connection between the business and the other state. In other words, even if the seller has no store in that state.
There is a exemption for businesses with annual revenues of less than $1 million.
What will be the impact on eBay, which certainly has sales in excess of $1 million a year.
They could argue they are only a distribution service or an advertising medium; therefor they have no financial interest in the prices collected for items purchased trough them.
But, consider that they charge % fee for each sale. Doesn't that sound like financial interest to you?
So, will they be required to add an appropriate tax for each purchase and forward it the taxing authority for the buyer's state of residence? Will that 5% to 7% tax collection be added to the purchase price of the seller? Will that diminish eBay's attractiveness for "bargain-hunters" and the listers who sell to them, many of whom deal in Indian arts?
'tis a puzzlement.
Do you sell through eBay? What is your opinion of the Marketplace Fairness Act ? What are your plans to cover the shortfall of revenue this may cost you? Join the conversation.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment