Discogs tax starting today!

Discussion in 'Marketplace Discussions' started by Strat-Mangler, Jul 1, 2019.

  1. Strat-Mangler

    Strat-Mangler Forum Resident Thread Starter

    Location:
    Toronto
    According to what Discogs stated, they should be charging tax starting today! Yet, I just paid for an order and was not charged taxes. Maybe it has something to do with my billing address being in Canada, even though I had the album shipped from one state to another?
     
    Dave likes this.
  2. badfinger54

    badfinger54 Forum Resident

    Location:
    Victoria, TX USA
    So, if we are a collector just selling a few records we have to allow them to collect tax for us or we must do it? That seemed to be what I gathered from reading some of the stuff on there.
     
  3. MYKE

    MYKE Analog Upstairs, Digital Downstairs

    I just made a purchase there, and no tax was charged.
     
  4. Strat-Mangler

    Strat-Mangler Forum Resident Thread Starter

    Location:
    Toronto
    It's automatically calculated and taken care of with no additional effort needed by the seller.
    Weird. I sold a record to an American who was charged taxes. I'm not a business nor an American so I don't understand how that makes any sense. The taxes offset the PayPal fees and I actually got an extra 50 cents on top of the 40-odd dollars for which the record sold. :doh:
     
    Dave likes this.
  5. greelywinger

    greelywinger That T-Rex Guy

    Location:
    Dayton, Ohio USA
    Only time I started seeing a sale tax charge was after August 1.
    Had a few in July, but saw no sales tax.

    Darryl
     
    Matthew Tate likes this.
  6. cdash99

    cdash99 Forum Resident

    Location:
    Mass
  7. Raynie

    Raynie Hyperactive!

    Location:
    Portland, OR
    I believe eBay and discogs (and everyone else) is doing it now, they have to. It is left to a state whether they want to impose their sales tax on items sold online. It stems from a new federal court ruling that any business with an economic (instead of physical) presence in a state can be subject to tax. This helps to regain state revenue lost from previous storefront sales that have moved to the internets. Makes good sense... especially since I live in Oregon that has no sales tax :whistle: . The highest rate I've seen so far is NY which is something like 10%.
     
  8. Matthew Tate

    Matthew Tate Forum Resident

    Location:
    Richmond, Virginia
    How does discogs and eBay have a physical presence anywhere? The sellers don’t work for them
     
  9. R. Totale

    R. Totale The Voice of Reason

    That's why they had to supplement the physical presence requirement with an "economic" one to get them ducats.
     
    Matthew Tate likes this.
  10. Dillydipper

    Dillydipper Sultan Of Snark

    Location:
    Central PA
    I just wonder, how soon before the State requires us to set up local Dragoons and Magistrates to send horse patrols out every Saturday to watch over us as we cruise the yard sales...:mad:

    Maybe our dads will be required to furnish receipts to their kids with their weekly allowances to help them with their own recordkeeping.

    And the school bullies will have to keep track of every sheckel of lunch money taken from the Chess Club members, to defer funding for Hall Monitors. :rolleyes:
     
    12" 45rpm, Dave and Matthew Tate like this.
  11. InStepWithTheStars

    InStepWithTheStars It's a miracle, let it alter you

    Location:
    USA
    I say we put taxes on free will, thought, and expression. That sounds like a great idea!
    -(insert corporation of your choice here)
     
    Dave and Matthew Tate like this.
  12. Dillydipper

    Dillydipper Sultan Of Snark

    Location:
    Central PA
    Well, if it's a "corporation of my choice", then I refuse, since it would incur taxes on the expending of my free will!
     
  13. InStepWithTheStars

    InStepWithTheStars It's a miracle, let it alter you

    Location:
    USA
    :shh:
     
  14. Sprague Dawley

    Sprague Dawley Forum Resident

    Location:
    Sapporo, Japan
  15. R. Totale

    R. Totale The Voice of Reason

    From the practical standpoint for those who like me didn't really understand how it works on Discogs, I sold a record to a state on the MPF where I am usually not required to collect sales taxes. Discogs put sales tax for his state on his bill, it was paid to me by the customer. Discogs put the same amount on my next bill and I paid it back to them.
     
    GentleSenator likes this.
  16. 12" 45rpm

    12" 45rpm Forum Resident

    Location:
    New York City
    Strange. Why not just do it in one-step?
     
  17. Strat-Mangler

    Strat-Mangler Forum Resident Thread Starter

    Location:
    Toronto
    I don't believe Discogs allows for the tax to be optional.
     
    Matthew Tate likes this.
  18. eddiel

    eddiel Forum Resident

    Location:
    Toronto, Canada
    Matthew Tate likes this.
  19. eddiel

    eddiel Forum Resident

    Location:
    Toronto, Canada
    If I understand all those posts about this on Discogs, essentially, Discogs is classified as an MPF so anyone selling on there would be required to charge tax to those states.

    Do you sell on eBay? Just wondering how eBay handles the MPF situation.
     
  20. R. Totale

    R. Totale The Voice of Reason

    In the 30 or so MFP states, Discogs as a "market facilitator" is responsible for collecting tax on all sales and paying it to that state. In most cases (although this is changing) buyers do not pay Discogs, they pay the vendor. The only way for Discogs to fulfill its requirement to collect sales tax is to have it paid to the vendor and collect it back from her to pass on to the state in question.

    I do, and none out my out of state eBay sales have visibly been taxed as described above so far. Discogs has set up an optional payment system where the buyer directly pays them and they then deduct the sales tax (not to mention their own fees) before paying the vendor. eBay is moving in that direction but is much larger and faces more hurdles along the way.
     
  21. Dave S

    Dave S Forum Resident

  22. Partyslammer

    Partyslammer Forum Resident

    I got a pretty pricey shock tonight when I won an auction for a $1,000 piece of used audio gear off eBay and went to pay for it and had almost $90 tacked on to the payment as a state tax. Nothing in the auction said anything about added sales tax and this was the first time in any auction I've won that had a sales tax added on. For eBay auction sales like this, is eBay collecting the tax or is the seller getting it as part of their final auction payment and it becomes their responsibility to report and pay the state for it?
     
    Matthew Tate likes this.
  23. Matthew Tate

    Matthew Tate Forum Resident

    Location:
    Richmond, Virginia

    as far as i know its ebay collecting it
     
    eddiel likes this.
  24. eddiel

    eddiel Forum Resident

    Location:
    Toronto, Canada
    Like Matthew Tate wrote, eBay is collecting it. The buyer never sees the cash.
     
    Matthew Tate likes this.
  25. R. Totale

    R. Totale The Voice of Reason

    According to the email I got yesterday from eBay, that is not the case. They are (or in the future will be) handling it just like Discogs as described above. They will add the tax to the buyer's bill, it will be included with the payment to the seller and recovered on the seller's next bill. Then eBay will pay the individual state.
     

Share This Page