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Post by chapeaunoir on Mar 28, 2019 22:15:59 GMT
Posh will begin collecting and remitting taxes in applicable states - the UA was amended as of 3/28:
As you may have heard, new laws have been enacted that require marketplaces to collect sales tax on all eligible orders. This means that Poshmark is required or may be otherwise obligated to collect sales tax on sales and submit these taxes directly to states and localities.
To simplify sales tax for our community, we created Posh Remit—one of the first country-wide tax remittance services.
Posh Remit is an innovative, hassle-free service that calculates state and local sales taxes, collects it from shoppers, and submits the appropriate amount to the state on behalf of our Seller Stylists—so you can focus on your business, not your taxes. This allows Poshers to continue to reach shoppers across the United States, while at the same time supporting their local communities directly.
Starting in April, Posh Remit will begin collecting and submitting sales tax on all taxable orders and we’ve updated our Terms of Service, effective as of March 28th, to reflect these changes.
Seller Stylists are quickly becoming the next generation of retailers, and we’re committed to continuing to scale our services to make it easy for anyone to run and grow their own business on Poshmark.
Regards,
(Manish - CEO)
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Post by RetroMonde on Mar 29, 2019 15:10:02 GMT
I saw that- fantastic news!
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Post by chapeaunoir on Mar 29, 2019 17:51:27 GMT
Yes, it is - one last thing to do at tax time! Some poshers are concerned that it may dent sales, though, when people learn they have to pay their own state tax. I've never sold anything to Washington there, though.
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val2525
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Post by val2525 on Mar 29, 2019 19:26:23 GMT
"Posh Remit" means they've contracted with one of the major tax software services. There is no way Posh would have the funds to pay for development of new software and setting up of remittance enrollments with all the states.
Don't be surprised if your seller fees go up in the near future. That software/service isn't cheap.
But I'm glad they're collecting. I wondered when they would, they were on several state's radar.
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Deleted
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Post by Deleted on Apr 2, 2019 3:36:02 GMT
I might not understand something., but buyers in ALL states paid sales tax today - NY, TX, IN, SC and FL... I don't get it. Only a few states now do this tax thing (California, Washington etc)... why are they charging it for ALL states now?
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val2525
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Post by val2525 on Apr 2, 2019 7:30:15 GMT
It's possible Posh may have meet the economic nexus limits in all states for the year and has decided to collect tax rather than pushing it off on to the sellers. They have the option to do that. They don't have to limit themselves to just the marketplace facilitator tax states (last count, 12 states + DC). As many as 20 other states are considering adding a marketplace facilitator law to their economic nexus law.
Personally, I wish all the marketplaces would collect for all states with sales tax. Take us totally out of the equation.
BTW, registering as an individual seller with some of the states when you hit their economic minimum is opening up a huge can of worms. I belong to a private FB group whose main topic is sales tax for online sellers. California is using a sellers' first time registration as an opportunity to request prior years sales records to determine if that seller should have registered earlier and if that seller may owe sales tax for prior years. A couple of other states may start doing this as well.
The big advantage to the Streamlined Online Sales Tax Initiative, or whatever the name was, was that it prohibited member states from doing exactly what CA is doing. However, since Congress couldn't get their heads out of their azzes and pass a federal law, the Wayfair/SD decision makes it possible for states to toss the SOST and do their own thing. Which may involve auditing new sellers to determine the issue of potential back taxes owed.
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val2525
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Post by val2525 on Apr 2, 2019 18:49:33 GMT
Ah ha. Posh IS collecting for all states with sales tax on items sold on Posh: www.ecommercebytes.com/2019/03/28/poshmark-tells-sellers-not-to-worry-about-sales-tax/Poshmark Chief Operations Officer John McDonald told EcommerceBytes, “Poshmark will be collecting sales tax in all states and municipalities that have sales tax. In states without existing or proposed marketplace facilitator laws, we have reached agreements to collect and remit on behalf of our Seller Stylists.”
Marketplace Facilitator laws (and Poshmark’s new practice) serve many sellers well, since it lifts a huge burden off their shoulders in the aftermath of the Supreme Court ruling in the Wayfair case.
McDonald said, “Our goal is to make commerce on our platform simple and hassle-free for our Seller Stylists so they can focus on growing their business on Poshmark. With Posh Remit, Seller Stylists will not have to worry about collecting and remitting sales tax on our platform. For multi-channel sellers, this should reduce their overall tax collection and remittance burden.”
McDonald confirmed that rather than building a solution in-house, a third-party software vendor is powering the system it’s using to collect and remit sales tax from buyers.
What about transactions that are tax exempt, whether it’s because a particular state may exempt certain products, or a buyer may be tax-exempt for some or all purchases?
“At launch, we will honor product-level exemptions for each state and municipality,” McDonald told us. “Shortly after launch, we plan to create a system to enable tax-exempt buyers (e.g. reseller, nonprofit, etc.) to submit tax exemption certificates to us and begin making tax exempt purchases.”
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Post by chapeaunoir on Apr 2, 2019 21:26:17 GMT
I just saw sales tax charged for a buyer in California, so it's going now.
BTW, registering as an individual seller with some of the states when you hit their economic minimum is opening up a huge can of worms. I belong to a private FB group whose main topic is sales tax for online sellers. California is using a sellers' first time registration as an opportunity to request prior years sales records to determine if that seller should have registered earlier and if that seller may owe sales tax for prior years. A couple of other states may start doing this as well.
This is a problem - I had over 400 sales to California last year - I should NOT be penalized for the Cali residents not remitting tax to their own state.
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val2525
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Post by val2525 on Apr 2, 2019 21:48:02 GMT
CA won't look at it that way, Chap. They may or may not send you an inquiry letter asking for more info.
The good news is if you did not have physical nexus in CA, and did not hit the economic nexus requirements when that law started, there isn't anything they can get you on. I don't think that many eBay sellers are being hounded, but CA is really going after Amazon sellers as they have a better chance of meeting the physical nexus on prior years if they were FBA sellers.
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Post by chapeaunoir on Apr 3, 2019 0:01:47 GMT
I was thinking that the administrative hassle of going after two-bit sellers like me doesn't seem worth it.
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Deleted
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Post by Deleted on Apr 4, 2019 17:24:01 GMT
Posh charged a buyer in MN (my home state) sales tax, however MN does not charge tax on clothing. Looks like they're going through the same glitches eBay did.
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val2525
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Post by val2525 on Apr 4, 2019 20:30:59 GMT
Posh charged a buyer in MN (my home state) sales tax, however MN does not charge tax on clothing. Looks like they're going through the same glitches eBay did. Drop an email to Posh and let them know. It's possible they haven't customized their tax software product yet.
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