Discogs and US Taxes

[Craig W]

I have had various messages from Discogs stating that new US tax laws will come in from 1st July and the seller will be responsible for calculating and paying? these taxes and should appoint an accountant to work out what to pay.

Does anyone know exactly how this will work and affect sellers as all that I have read seems very confusing.

I sell very little on Discogs and find it like a Record fair late in the afternoon when there is just one buyer walking round the room and everyone just wants to go home it really is that quiet.

If it is going to be costly and awkward to work out I will probably  close my Discogs account.

[Headsy]

I assume on your invoice he will include a sales tax as part of the total payable when you buy.

The seller will then be liable to pay this back to the state he is in or the IRS as part of his tax return.....or discogs will transfer this on the sellers behalf.

Either way your purchase price is more than before.

If you are outside the US you should not be affected ???

At the silly prices being charged for common records on there it's getting less worthwhile by the day to buy on there.

Edited June 27, 2019 by headsy

[Craig W]

Thanks for the reply.

I'm still confused and I have now just taken USA off my list of countries I will post to on Discogs as probably plenty of other Discogs sellers will do.

[Soundsokeh]

I regularly look on discogs for records but I agree with the above that some of the prices being asked are ridiculous, so I look elsewhere to obtain them

eg:- I have just bought one on ebay UK which even with postage costs was a lot less then the cheapest discogs price (which the discogs one didnt include the postage either - so postage and packing was extra and would have cost me several pounds more for the same item)

if most (but not all) discogs sellers got real with their prices they would sell many more records , but I suspect the green eyed monster of greed gets the better of them and I know this to be true over a Dee Dee Warwick record I bought on there recently , where I offered half the highest price it was on there for to another seller with a "make me an offer" option, that highest price had not budged in over 2 years until recently. my offer to the alternative seller was accepted, so why would I pay another discogs seller twice the price ?

I have no idea about the USA taxes though , but I assume it could be worse for buyers and sellers in the prices being asked for (but not necessarily paid as buyers may shy away even further unless the prices being asked for come down to a more realistic level) - I have found that the Canadian sellers are usually more reasonable in their expectations and will help the buyers too

 

 

 

[Modernsoulsucks]

I don't use Discogs really. Odd thing very very rarely.

However I have noticed buying off USA eBay that I am being charged sales tax. Not sure when it came in but I think at least for over a month now.

That may be because I use a mate's US address to have records sent to him rather than direct to me. He then sends on "in bulk" to me which does work out cheaper.

Does someone buying on the US eBay site but having them sent direct to UK pay the sales tax ?

If you sell to the US would you pay sales tax ?

It's the buyer who pays sales tax isn't it, not the seller ?

Confused !

 

Edited June 27, 2019 by Modernsoulsucks

[Blackpoolsoul]

50 minutes ago, Modernsoulsucks said:

I don't use Discogs really. Odd thing very very rarely.

However I have noticed buying off USA eBay that I am being charged sales tax. Not sure when it came in but I think at least for over a month now.

That may be because I use a mate's US address to have records sent to him rather than direct to me. He then sends on "in bulk" to me which does work out cheaper.

Does someone buying on the US eBay site but having them sent direct to UK pay the sales tax ?

If you sell to the US would you pay sales tax ?

It's the buyer who pays sales tax isn't it, not the seller ?

Confused !

 

I assume it's the same as the other well know auction site, as for expensive on Discogs, I have seen more expensive records on Soul Source to be fair

https://tamebay.com/2019/06/ebay-collect-online-sales-tax.html

[Modernsoulsucks]

Link has cleared some of the confusion.

Looks like buyers who pay. Sellers pass that on to tax offices in each state but eBay do it for them for certain states.

My address is NJ so collecting sales tax already. Still not sure if UK buyers using UK address are now or in future going to have sales tax added on to purchase price.

I didn't mention expensive but yes everywhere is but despite "evil" eBay I get bargains IMO on there most weeks.

I mean bargains compared to what is being asked over here. At least 50% cheaper.

Edited June 27, 2019 by Modernsoulsucks

[Blackpoolsoul]

3 hours ago, Modernsoulsucks said:

Link has cleared some of the confusion.

Looks like buyers who pay. Sellers pass that on to tax offices in each state but eBay do it for them for certain states.

My address is NJ so collecting sales tax already. Still not sure if UK buyers using UK address are now or in future going to have sales tax added on to purchase price.

I didn't mention expensive but yes everywhere is but despite "evil" eBay I get bargains IMO on there most weeks.

I mean bargains compared to what is being asked over here. At least 50% cheaper.

I will look in to it, it may be the same rule that already has applied to Australia for the last year