United States Sales Tax
Do I have to fill out or submit any forms or paperwork to all 50 states?
No, Ruby Lane handles all the necessary tax returns, whether quarterly, monthly or yearly for each state.
Does this apply to shops outside the USA?
Yes, because states collecting sales tax view all sellers on Ruby Lane collectively. Shops located outside of the USA, selling to buyers located in the USA, are required to pay sales tax to the buyers respective state.
Do you need to charge sales tax on used items?
Yes. Many sellers (and their buyers) often have questions about whether used items are subject to sales tax. After all, if the item is used, tax likely was paid on the original purchase.
Every state has its own rules and regulations about tax on used items.There are some general guidelines that most states follow, however. If you regularly buy items to resell them for a profit, which covers all Ruby Lane sellers, the law typically views you as a business owner, even if those items are used. That likely means one needs to collect sales tax on all transactions.
When are you going to start collecting sales tax?
We are working as quickly as we can to implement something in 2019.
Why are there extra fees and how much are they?
We are incurring 3rd party costs for handling tax calculations, plus registering and filing in most states, and additional staff is needed just to administer the collection and distribution of the sales tax. And since the sales tax funds change hands between the buyer, seller and Ruby Lane, we are incurring extra PayPal fees on the sale tax amount and in handling any returns. Since we have not yet nailed down the entire process and know all the fees that are projected, we don't have a fee schedule yet.