Thanks in advance for any advice from tax experts here!
I live in the UK and often make online purchases from a US company (The RealReal). At checkout sales tax (20%) is applied, despite my shipping and billing info being based in the UK. I didn't think this was right, because as an international customer I shouldn't be paying US sales tax, but rather am subject to import customs/duties as determined/charged by the UK (every order is shipped duty unpaid or DAP). So I reached out and customer service, which raised the issue with an internal team and ended up refunding the sales tax. Super!
I ordered from them a few more times, was still automatically charged sales tax at checkout for an international order, but am refunded after reaching out to customer service.
Until recently... I place an order, reach out to customer service to have the sales tax refunded, am and told:
[As a note, I had been getting sales tax refunds post January 1, 2021--they sent this message in 2024.]
This confused me because all shipments from this company are duty unpaid so I pay UK VAT upon import. I explain this and ask if they were collecting this to pay to the UK on my behalf. They respond:
I have since had a lot of unproductive back and forth with their customer service where they haven't been able to give me any clear answer on what the sales tax is, other than, per their website "The RealReal has a fiduciary responsibility and is obligated by law to collect sales tax on orders shipped to U.S. jurisdictions that charge sales tax." When I explain that my order has not been shipped to a US jurisdiction, they tell me the sales tax is applied because it is shipped from a US jurisdiction (specifically Kentucky or NJ).
So, am I missing something obvious about being charged sales tax on an international order as a non-resident of the US, or is this a class-action lawsuit waiting to happen?
TLDR; I placed an online order from a US company shipped directly to the UK with duty unpaid and was charged 20% "sales tax." Should I be charged sales tax from a US company for an international order?
Hi everyone, day chilly, night even colder. I have an online store that sells digital products and is based in Maryland. I know I have to charge Maryland customers 6% sales tax on every purchase. My question to you is... Do I have to charge customers who are out-of-state also 6% sales tax? For example if someone from California bought one of my products, would I charge them 6% sales tax, 7.25% which is the California rate, or 0%? Also the same question for customers who are out-of-country. Someone from England purchased a product would I charge them 6% sales tax or nothing? Thankyy :D