Sales tax on Reverb

tillerva

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I recently purchased a cymbal on Reverb and was unknowingly hit with sales tax, bringing the purchase price up (guess I haven’t bought/sold anything on there for awhile but anyway....)
This week I SOLD another cymbal and my sale revenue was REDUCED by the tax amount.
So I was charged sales tax as both the buyer and the seller. How does that work?
 

repete

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I bought a kit that was marked as pick up only so I got hit with the state tax but since that was added before the seller offered to ship it I just paid the difference on the shipping amount. Was the seller in your home state?
 

ARGuy

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I recently purchased a cymbal on Reverb and was unknowingly hit with sales tax, bringing the purchase price up (guess I haven’t bought/sold anything on there for awhile but anyway....)
This week I SOLD another cymbal and my sale revenue was REDUCED by the tax amount.
So I was charged sales tax as both the buyer and the seller. How does that work?
That is strange. Why didn't the buyer of your cymbal get charged sales tax for the state they live in? Is there a setting on your sellers account that has to be enabled in order to allow sales tax to be added, otherwise it's considered part of the selling price?
 

supershifter2

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About 2 years ago the SCOTUS ruled that all states can charge internet sales tax. The law went into effect January 2019. Sellers dont post the sales tax. It is automatically posted by the payment method at checkout and the amount charged depends on the state the buyer is in.
 

Rich K.

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I recently purchased a cymbal on Reverb and was unknowingly hit with sales tax, bringing the purchase price up (guess I haven’t bought/sold anything on there for awhile but anyway....)
This week I SOLD another cymbal and my sale revenue was REDUCED by the tax amount.
So I was charged sales tax as both the buyer and the seller. How does that work?
The total sale amount shown was with the sales tax, but the total you got was the amount without sales tax less fees and shipping if you used reverb to ship. Pretty sure that's what happened. At least that's what should have happened. Sellers shouldn't be charged sales tax.
 

supershifter2

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I recently purchased a cymbal on Reverb and was unknowingly hit with sales tax, bringing the purchase price up (guess I haven’t bought/sold anything on there for awhile but anyway....)
This week I SOLD another cymbal and my sale revenue was REDUCED by the tax amount.
So I was charged sales tax as both the buyer and the seller. How does that work?
Thats not right. Only the buyer is suppose to be charged sales tax not the seller. Something is wrong.
 

Mcjnic

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Double check your numbers. I believe you will find if you add them up, it is more than your total asking price. The sales tax is put on top of the sell ask. It stopped me, too when I sold my first item after it kicked in. The numbers are correct, though. They actually total more than your ask ... by the amount the buyer paid in tax.
 

Tama CW

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Rich K is correct. Your seller's invoice shows ALL the fees and costs of the transaction, including the sales tax paid for by the buyer. The seller only gets the listed purchase price less the 6.0-6.3% Reverb/PayPal fees.....and a slight adjustment for shipping depending on whether you over-charged or under-charged for it. On initial glance, it does seem "too good to be true" what the final price paid by the buyer is. But in totality, the seller only nets slightly under 80% of the buyer's paid price. That's what I've been averaging recently. I've sold about 2 dozen items this year on Reverb.....not once has the sales tax come out of my pocket. And I check those invoices very closely for what the final payout to me is. Ebay hits you up for the same sales taxes.....same change in law that came into being in 2019.
 

tillerva

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Yep, exactly right. The buyer paid the extra for tax, included in my gross sale and my net sale was reduced by that amount, making it a wash on my end. Thanks for the help.
 

NobleCooleyNut

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Yup - I cancelled my Reverb account for this and other annoying things they do now .
 

studrum

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This "annoying" thing is tax law. If you don't like taxes, only buy on Craig's List and FaceBook.
This is correct. It's a state-by-state thing. In Michigan, it became the law in January, 2020, that internet sales will be taxed. Don't blame Reverb. It will slow my online purchasing a little, but I don't buy that much. What will slow internet purchasing more is the ever-increasing shipping costs, but I think it's good to get away from what I regard as the narcissistic, slothful "click, and it better appear in my living room tomorrow" behavior. Those low costs were an illusion. I welcome the sales tax money into my state's coffers.

It seems some folks actively buy things, on a regular basis, more as a tryout. I am not just wagging my finger at 65 year-olds with a lot of disposable income ordering another $700 snare: many a tween orders a t-shirt, or few pens, cat food, through the internet. The waste! All that packaging and all of those trucks. It has encouraged people to buy things that they don't really need. Just click, right? Our grandparents would not understand or tolerate this frivolous waste.

One of my former tenants, a good guy, had been moved out for a couple of years. One day I was finding a box that I would need to ship a book that I sold on Amazon (don't get me started about college kids - and their parents, more likely - who've never been in a bookstore and seem to order different copies of the same book, waiting to see which one arrives first: "I'll just send the other ones back. The seller better accept it, or I'll give him a bad review."). Anyway, the former tenant's box that I found, upon finding the packing info inside, was used to ship WEIGHTS! I burst out laughing, couldn't believe it. You can get weights practically for free at the Sally Ann or Goodwill! Talk about the ultimate desire to pay for shipping!
 

tillerva

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Great post Studrum . I find myself in that trap more all the time. I used to play old Zildjian As exclusively, happily. Then I got a few Paiste cymbals and I’ve been buying so many trying to find “the one”.
 

Tama CW

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What I've found since the sales tax thing showed up on Reverb is that the buyers effectively back it out of what they are willing to offer. In essence, I'm the one paying it. And probably 1/2 to full shipping as well. What someone would buy at $150 a year ago, they'll mostly only pay $140 for today, to counter the sales tax. Buyers aren't stupid. I do the exact same thing when buying.

Studrum, I've been looking for "free" weights for my nephew the past 6 months on FB and CL. No luck. They are consistently at 2c to 3c per pound....for used. And essentially every seller abides by that range....especially for dumb bell pairs. It's like they work together. Yeah, maybe once every few months some baby boomer clearing out the basement offers a weight set for $20-$50.....but those are getting rarer.
 

bongomania

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Decades ago I used to see whole weights sets, bench and bells and all, just sitting on the curb, or in the papers listed for free or cheap. I haven’t seen that in ages.
 

studrum

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What I've found since the sales tax thing showed up on Reverb is that the buyers effectively back it out of what they are willing to offer. In essence, I'm the one paying it. And probably 1/2 to full shipping as well. What someone would buy at $150 a year ago, they'll mostly only pay $140 for today, to counter the sales tax. Buyers aren't stupid. I do the exact same thing when buying.

Studrum, I've been looking for "free" weights for my nephew the past 6 months on FB and CL. No luck. They are consistently at 2c to 3c per pound....for used. And essentially every seller abides by that range....especially for dumb bell pairs. It's like they work together. Yeah, maybe once every few months some baby boomer clearing out the basement offers a weight set for $20-$50.....but those are getting rarer.
Hey, fair enough. I was sort of thinking like bongomania, I guess. Who'd have thought: weights = hot item?
 


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