Sales tax on Ebay sale where commercial seller doesn’t have nexus?
I recently agreed to purchase a piece of Machinery from someone in California. The company I’m purchasing from does not have nexus in Washington state where I live.
They asked if I would have the machine shipped or be picking it up myself. When I offered to drive down and pick it up they sent me an invoice requesting I pay 9.25% sales tax.
This does not sound legal to me.
I understand the Walmart analogy. Does that hold true if I pay for something in advance? In essence, acting as my own shipping company by going down to pick it up.
It doesn’t matter if the company has nexus in Washington. You are paying California sales tax because possession and title to the product passed in California. It doesn’t matter when you paid for it and it doesn’t matter if you are removing it from the state.
If the company had shipped the product, title and possession would pass when you receive the product in Washington, which would make it exempt from CA tax.
Either way, you would still be liable for Washington use tax.
Recent Comments