Sales Tax options
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There is currently a thread in the Forums regarding sales tax issues for some states like NY where figuring in the tax rate is not as simple as putting in your location. NY charges sales tax based on county of the buyer, not the seller, and county doesn't always equal zip code. This certainly isn't an easy situation to deal with for any NY seller (or any other state that has similar interesting sales tax requirements).
Many of us currently have to refund a purchase and ask the buyer to REBUY the same items using the "other" payment option so we can issue them an invoice through Paypal. An absolute pain for all involved. The problem now is that with DC, there's really no way to do that sort of invoicing.
So... Admin... could you address this please? Perhaps have the buyer put in their county of residence during their purchase so it can calculate a tax rate? Or somehow let us put in a tax rate manually for a sale prior to completing the payment? We need some way to deal with this now that Paypal isn't really the standard form of payment on Etsy.
Posted at 3:14pm Jun 8, 2012 EDT
At the moment, the best way to address this would be to charge the highest amount for NY and then refund buyers who are in a lesser amount zip code (since refunds work well). Being able to input tax rates by county is something on our radar, but until then, this might be the easiest way to address this.
Posted at 3:08pm Jun 18, 2012 EDT
Carol -- Is there a problem with DC and CA sales tax? I have not done anything different! Gosh everyone, I though CA sales tax was a nightmare, and I don't see why the NY Board of Equalization or whatever they are called, should care who pays the tax, as long as it's paid. I mean, what if there's a legitimate error, you don't contact the customer 6 months down the road and ask for more tax.
Posted at 6:32pm Jun 18, 2012 EDT
Camilla - sales tax in NYS really needs to be by county where the item is delivered. In the near future that is going to be even more important as the USPS goes through all the proposed changes. NYS does require the sales tax to be based by county not by ZIP Code.
Posted at 8:55am Jun 19, 2012 EDT
Thank you, Camilla, for letting us know we're on your radar. I'm pleased to know that this may be something available in the future... I just hope it's the near future if possible. There are lots of us who would really like to be able to do this an accurate way based on the state, and at this point it's not really possible at all.
I've heard from some people that are charging the average 8% sales tax in the state, but that's still not quite according to the laws (and Last Ditch Laura, you're so right... it's just not all that comforting to know that we have no alternative until this issue is really addressed directly)
Posted at 10:01am Jun 19, 2012 EDT