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Admiral Gloval
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Message 1687680 - Posted: 4 Jun 2015, 11:55:59 UTC

Now don't forget the changes to the VAT. Each country now charges their own on e-commerce. 20 different amounts to file at end of year.

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Message 1687691 - Posted: 4 Jun 2015, 12:40:22 UTC

They (we) are the ones propping up the post office, not the pensioners coming in to draw their pension or buy one solitary stamp using coins Boudicca would find nostalgic, once they've found their glasses of course!
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Message 1687700 - Posted: 4 Jun 2015, 13:28:35 UTC
Last modified: 4 Jun 2015, 13:29:51 UTC

I sell things on ebay from time to time. Guess we have diffrent systems. Here the seller is expected to list the cost of postage in the auction. So I package the item before I create the auction listing, measure and weigh it. I enter that information as part of the auction listing. After the auction closes and the buyer pays, I just click a button to buy and print the postage. I get a shipping label with the correct postage on it, stick on the package and take it to the post office. Most post offices here have a large cart in the lobby for pre-paid items. I just drop the package into the cart. I don't get in line. I have no impact on the postal patron in line, nor they me.
As for reporting the sale, well I don't really make a profit. I am selling stuff I no longer need or want. Example an intel cpu that I bought for over $1,000 five years ago just sold for $50. If I reported I would have a $950 loss, excuse $975, I get to deduct postage and costs of sale too.
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Message 1687709 - Posted: 4 Jun 2015, 13:40:45 UTC - in response to Message 1687700.  

I sell things on ebay from time to time. Guess we have diffrent systems. Here the seller is expected to list the cost of postage in the auction. So I package the item before I create the auction listing, measure and weigh it. I enter that information as part of the auction listing. After the auction closes and the buyer pays, I just click a button to buy and print the postage. I get a shipping label with the correct postage on it, stick on the package and take it to the post office. Most post offices here have a large cart in the lobby for pre-paid items. I just drop the package into the cart. I don't get in line. I have no impact on the postal patron in line, nor they me.

Unless you sell to outside the USA when the customs form needs to be done face to face, but that is Post Office doing Customs job.

As for reporting the sale, well I don't really make a profit. I am selling stuff I no longer need or want. Example an intel cpu that I bought for over $1,000 five years ago just sold for $50. If I reported I would have a $950 loss, excuse $975, I get to deduct postage and costs of sale too.

Now, are you doing your sales as a business or a hobby? If it is a hobby you can't deduct the costs! Watch out for the 1099-K. And don't forget the 3/5 year rule. (The tax man steals)
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Message 1687718 - Posted: 4 Jun 2015, 14:01:41 UTC

Of course here in the USA, We have no VAT Tax, that would be up to Congress, but ya have 50 different states represented here, I doubt it will happen anytime soon.
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Message 1687724 - Posted: 4 Jun 2015, 14:19:11 UTC - in response to Message 1687709.  

Unless you sell to outside the USA when the customs form needs to be done face to face, but that is Post Office doing Customs job.


Ebay even made that eazy. You ship to the closest ebay global distribution center, they then take care of the international shipping, customs, etc.
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Message 1687728 - Posted: 4 Jun 2015, 14:25:23 UTC - in response to Message 1687712.  
Last modified: 4 Jun 2015, 15:23:35 UTC

That is irrelevant Carlos! Bought for $1000 sold for $50, in a business you could put that down to depreciation and get a tax rebate. As a private individual you have $50 of untaxed income. As I said these Ebayers are "unofficially" in business for all intents and purposes.

After the auction closes and the buyer pays, I just click a button to buy and print the postage. I get a shipping label with the correct postage on it, stick on the package and take it to the post office. Most post offices here have a large cart in the lobby for pre-paid items.

That would be good to see over here, but it doesn't happen in the UK. Yes you can print pre-paid postage from the Internet, but nobody that I see seems to want to do that.

I'm surprised nobody has asked how I know they are Ebayers. I asked one woman I see fairly regularly up there and she admitted it :-) What am I doing up in the post office so regularly? I have many friends and family that I regularly send gifts to.

You're only see the ones that don't use pre-paid postage. Your line maybe twice as long or more if no one did.

As a private individual you have $50 of untaxed income.

How is that income? He didn't get the item he sold for free.
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Message 1687737 - Posted: 4 Jun 2015, 14:52:52 UTC - in response to Message 1687712.  

That would be good to see over here, but it doesn't happen in the UK. Yes you can print pre-paid postage from the Internet, but nobody that I see seems to want to do that.

One can print postage from the internet, but what does one do then?
Answer, one still has to take it to the post office, however that office now gets no commission for the parcel that they still have to process.
So, since i'm going to the post office either way, i buy the postage there (same price) so that they get the commission for handling the parcel.
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Message 1688044 - Posted: 5 Jun 2015, 10:18:58 UTC - in response to Message 1688033.  

Gonna buy any?

Royal Mail sell off

I did last time. Bought £500 worth and sold them for £906.30.
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Message 1688055 - Posted: 5 Jun 2015, 10:37:37 UTC - in response to Message 1688050.  

Ooooh you capitalist you :-))

Guilty as charged.
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Message 1688056 - Posted: 5 Jun 2015, 10:46:05 UTC
Last modified: 5 Jun 2015, 10:46:52 UTC

In October 2008, amidst the 2008–2011 Icelandic financial crisis, one seller put up Iceland for sale on eBay. The auction started with a bid of 99 pence and reached 10 million pounds (US $17.28 million). However, singer Björk was "not included" in the sale.
The notice read:
Located in the mid-Atlantic ridge in the North Atlantic Ocean, Iceland will provide the winning bidder with — a habitable environment, Icelandic Horses and admittedly a somewhat sketchy financial situation. Bidders' questions included: "Do you offer volcano/earthquake insurance?"[11]
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Message 1688072 - Posted: 5 Jun 2015, 12:09:34 UTC - in response to Message 1687728.  

As a private individual you have $50 of untaxed income.

How is that income? He didn't get the item he sold for free.


Because you don't start with the price you paid for an item when claiming income tax. What you paid for it might be what it was worth when you bought it, but when you sell it, the price you sell it for is income. It might be a net loss for you, but the sale still adds to your overall income.
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Message 1688086 - Posted: 5 Jun 2015, 12:56:25 UTC - in response to Message 1688072.  

As a private individual you have $50 of untaxed income.

How is that income? He didn't get the item he sold for free.


Because you don't start with the price you paid for an item when claiming income tax. What you paid for it might be what it was worth when you bought it, but when you sell it, the price you sell it for is income. It might be a net loss for you, but the sale still adds to your overall income.

That's not how my accountant says it works.
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Message 1688092 - Posted: 5 Jun 2015, 13:22:28 UTC - in response to Message 1688086.  
Last modified: 5 Jun 2015, 13:42:07 UTC

As a private individual you have $50 of untaxed income.

How is that income? He didn't get the item he sold for free.


Because you don't start with the price you paid for an item when claiming income tax. What you paid for it might be what it was worth when you bought it, but when you sell it, the price you sell it for is income. It might be a net loss for you, but the sale still adds to your overall income.

That's not how my accountant says it works.


Then your accountant is wrong. But don't just take my word for it, read the IRS publication yourself.

While most people are aware they must include wages, salaries, interest, dividends, tips and commissions as income on their tax returns, many don’t realize that they must also report most other income, such as:


    cash earned from side jobs,
    barter exchanges of goods or services,
    awards, prizes, contest winnings and
    gambling proceeds.



This fact sheet, the 18th in the Tax Gap series, will help taxpayers better understand miscellaneous income and what they are required to report as taxable on their Form 1040.
The tax gap, or the amount of taxes that go unpaid each year, results from taxpayers underreporting their taxable income. Fortunately most people want to pay their fair share of taxes and many simply need a better understanding of their obligations.

What is Taxable?

Taxpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code. There may be taxable income from certain transactions even if no money changes hands.
Generally, the IRS considers all income received in the form of money, property or services to be taxable income unless the law specifically provides an exemption. This document discusses a few types of reportable income. Information on how to report other types of income can be found in Publication 525, Taxable and Nontaxable Income.



Furthermore, you can read more about it directly on eBay's site and from various tax professionals across the US.
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Message 1688102 - Posted: 5 Jun 2015, 13:44:53 UTC - in response to Message 1688096.  

Is not that VAT?
The US doesn't have VAT (Value Added Taxes).
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Message 1688135 - Posted: 5 Jun 2015, 15:20:10 UTC - in response to Message 1688132.  

You need to do some homework Janne.

CGT

VAT took over from Purchase Tax.

VAT

Janne is half right in one respect, the USA has no VAT tax, Congress could levy one, as that is within their power to do so, according to Article 1, Section 8 of the US Constitution..
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Message 1688153 - Posted: 5 Jun 2015, 16:08:42 UTC - in response to Message 1688092.  

As a private individual you have $50 of untaxed income.

How is that income? He didn't get the item he sold for free.


Because you don't start with the price you paid for an item when claiming income tax. What you paid for it might be what it was worth when you bought it, but when you sell it, the price you sell it for is income. It might be a net loss for you, but the sale still adds to your overall income.

That's not how my accountant says it works.


Then your accountant is wrong. But don't just take my word for it, read the IRS publication yourself.

While most people are aware they must include wages, salaries, interest, dividends, tips and commissions as income on their tax returns, many don’t realize that they must also report most other income, such as:


    cash earned from side jobs,
    barter exchanges of goods or services,
    awards, prizes, contest winnings and
    gambling proceeds.



This fact sheet, the 18th in the Tax Gap series, will help taxpayers better understand miscellaneous income and what they are required to report as taxable on their Form 1040.
The tax gap, or the amount of taxes that go unpaid each year, results from taxpayers underreporting their taxable income. Fortunately most people want to pay their fair share of taxes and many simply need a better understanding of their obligations.

What is Taxable?

Taxpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code. There may be taxable income from certain transactions even if no money changes hands.
Generally, the IRS considers all income received in the form of money, property or services to be taxable income unless the law specifically provides an exemption. This document discusses a few types of reportable income. Information on how to report other types of income can be found in Publication 525, Taxable and Nontaxable Income.



Furthermore, you can read more about it directly on eBay's site and from various tax professionals across the US.

I think you forgot to read this...

For tax purposes, your cost basis...

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Message 1688158 - Posted: 5 Jun 2015, 16:17:38 UTC

Of course there is one seller on ebay that I'd like to buy an MSI GTX 590 card from, but the seller doesn't do international shipping.. And there aren't many of these 590 cards for sale anymore.
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Message 1688166 - Posted: 5 Jun 2015, 16:29:14 UTC - in response to Message 1688153.  
Last modified: 5 Jun 2015, 16:32:04 UTC

As a private individual you have $50 of untaxed income.

How is that income? He didn't get the item he sold for free.


Because you don't start with the price you paid for an item when claiming income tax. What you paid for it might be what it was worth when you bought it, but when you sell it, the price you sell it for is income. It might be a net loss for you, but the sale still adds to your overall income.

That's not how my accountant says it works.


Then your accountant is wrong. But don't just take my word for it, read the IRS publication yourself.

While most people are aware they must include wages, salaries, interest, dividends, tips and commissions as income on their tax returns, many don’t realize that they must also report most other income, such as:


    cash earned from side jobs,
    barter exchanges of goods or services,
    awards, prizes, contest winnings and
    gambling proceeds.



This fact sheet, the 18th in the Tax Gap series, will help taxpayers better understand miscellaneous income and what they are required to report as taxable on their Form 1040.
The tax gap, or the amount of taxes that go unpaid each year, results from taxpayers underreporting their taxable income. Fortunately most people want to pay their fair share of taxes and many simply need a better understanding of their obligations.

What is Taxable?

Taxpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code. There may be taxable income from certain transactions even if no money changes hands.
Generally, the IRS considers all income received in the form of money, property or services to be taxable income unless the law specifically provides an exemption. This document discusses a few types of reportable income. Information on how to report other types of income can be found in Publication 525, Taxable and Nontaxable Income.



Furthermore, you can read more about it directly on eBay's site and from various tax professionals across the US.

I think you forgot to read this...

For tax purposes, your cost basis...


That was preceded by:

If you call selling stuff on eBay a business, different rules apply,


For deducting expenses related to selling while running a business.
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Message 1688178 - Posted: 5 Jun 2015, 16:49:04 UTC - in response to Message 1688132.  

You need to do some homework Janne.
CGT
VAT took over from Purchase Tax.
VAT

I Think you should do your homework Chris!
At very least read your own links that you are giving to us that "supports" your statement!
http://en.wikipedia.org/wiki/Value-added_tax#Different_systems
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