User agreement - forced tax collection

[shipscript]

@Anonymous 

https://pages.ebay.com/seller-center/seller-updates/2019-fall/index.html

"Our updated eBay User Agreement, effective August 30, 2019, relates to eBay’s ongoing rights and responsibilities pertaining to marketplace tax collection."

I assume this applies only to sellers on the US platform?

https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259

"In any jurisdiction where eBay has an obligation to collect sales taxes on sales you make using eBay Services, we may collect such sales taxes from you via the payment method on file under the terms of the Billing Agreement or via any other means available to us."

I'm having trouble understanding, since eBay will collect sales tax from the buyer in marketplace facilitator states. The wording seems to indicate there will be circumstances where the seller may, or must, collect sales tax from the buyer, and that eBay might collect that tax directly from the seller. Do such eBay obligations already exist, or is this a look to the future?

[dtexley3]

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@shipscript wrote:

@Anonymous 

https://pages.ebay.com/seller-center/seller-updates/2019-fall/index.html

"Our updated eBay User Agreement, effective August 30, 2019, relates to eBay’s ongoing rights and responsibilities pertaining to marketplace tax collection."

I assume this applies only to sellers on the US platform?

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Probably not, they collect VATs for Canada and Australia right now.

[shinwell_johnson]

Wait, WHAT?!?

No response?  No debate, dialog, or even RECOGNITION of such a HUGE question, which would have potential repercussions for ALL OF US?!?

This is DISTURBING.

SPEAK UP, SELLERS.

SPEAK UP, eBAY - SPECIFICALLY TRINTON, who was called upon during business hours on a day that we ALL KNOW eBay personnel were carefully monitoring this very board.  Here we are, 14 HOURS LATER, STILL AWAITING SOME KIND OF A RESPONSE.

Answers, please.  Critical issue here.  Follow the "new strategy" - support your sellers.  I know the Fall Seller Update isn't "officially" in effect yet, but show us you are really serious in your new seller-friendly policies by actually BEING FRIENDLY TO SELLERS.

Just sayin...

[lacemaker3]

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@shipscript wrote:

@Anonymous 

https://pages.ebay.com/seller-center/seller-updates/2019-fall/index.html

"Our updated eBay User Agreement, effective August 30, 2019, relates to eBay’s ongoing rights and responsibilities pertaining to marketplace tax collection."

I assume this applies only to sellers on the US platform?

https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259

"In any jurisdiction where eBay has an obligation to collect sales taxes on sales you make using eBay Services, we may collect such sales taxes from you via the payment method on file under the terms of the Billing Agreement or via any other means available to us."

I'm having trouble understanding, since eBay will collect sales tax from the buyer in marketplace facilitator states. The wording seems to indicate there will be circumstances where the seller may, or must, collect sales tax from the buyer, and that eBay might collect that tax directly from the seller. Do such eBay obligations already exist, or is this a look to the future?

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Hi @shipscript,

Your two quotes are not talking about the same thing. They are completely independent, so there is no conflict between them.

The first quote is about collecting sales tax from the buyer, according to the Marketplace Facilitator regulations that have been rolled out by various states this year.

The second quote is about collecting sales tax from sellers, on the services that eBay has provided to them. This tax is on the eBay fees, and is paid by the sellers who received the services. This is separate from the tax on the purchases, which is paid by the buyers who received the items. That is why this tax is collected from the sellers, not from the buyers.

I'm not aware of any jurisdictions within the USA that require eBay to collect tax on their services, but some countries already require eBay to collect taxes on their services provided to sellers. For example, Canada and the European Union requires that tax be collected on services provided to sellers (unless they are registered as business sellers in the EU). This is described under "Other terms and conditions" in the last bullet point at the bottom of the page:

USA: https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364

Canada: https://www.ebay.ca/help/selling/fees-credits-invoices/selling-fees?id=4364

In the UK (under EU regulations at this time) the VAT is supposed to be included in the price shown, it is not supposed to be a separate line item, so for private sellers in the EU, the 20% VAT is included:

UK: https://www.ebay.co.uk/help/selling/fees-credits-invoices/selling-fees?id=4364

[jaz_zy89]

"The second quote is about collecting sales tax from sellers, on the services that eBay has provided to them. This tax is on the eBay fees, and is paid by the sellers who received the services."

So does this mean that on top of Ebay fees that Ebay is now charging/collecting sales tax on those fees? That doesn'r seem right since not all states have sales tax so only some sellers will be taking another hit. Is this correct or am I misunderstanding?

[penguins_dont_fly]

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@jaz_zy89 wrote:

"The second quote is about collecting sales tax from sellers, on the services that eBay has provided to them. This tax is on the eBay fees, and is paid by the sellers who received the services."

So does this mean that on top of Ebay fees that Ebay is now charging/collecting sales tax on those fees? That doesn'r seem right since not all states have sales tax so only some sellers will be taking another hit. Is this correct or am I misunderstanding?

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@jaz_zy89 

No ...

The UK, Australia, Canada and EU countries have National VAT/GST on services.

Sellers in those countries get charged tax on their eBay Invoice amount.

The U.S. and other countries do not have national VAT/GST on services.

[ypdc_dennis]

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@jaz_zy89 wrote:

"The second quote is about collecting sales tax from sellers, on the services that eBay has provided to them. This tax is on the eBay fees, and is paid by the sellers who received the services."

So does this mean that on top of Ebay fees that Ebay is now charging/collecting sales tax on those fees? That doesn't seem right since not all states have sales tax so only some sellers will be taking another hit. Is this correct or am I misunderstanding?

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eBay will only be charging sales tax on eBay fees for States that require them to do so. Have not heard of any States require that (so far).

But, yes, in the event that sales tax is collected on fees some Sellers will feel the pinch more than others.

-..-

[lacemaker3]

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@jaz_zy89 wrote:

"The second quote is about collecting sales tax from sellers, on the services that eBay has provided to them. This tax is on the eBay fees, and is paid by the sellers who received the services."

So does this mean that on top of Ebay fees that Ebay is now charging/collecting sales tax on those fees? That doesn'r seem right since not all states have sales tax so only some sellers will be taking another hit. Is this correct or am I misunderstanding?

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No, that's not what I said. You missed the next sentence, which was this:

"I'm not aware of any jurisdictions within the USA that require eBay to collect tax on their services, but some countries already require eBay to collect taxes on their services provided to sellers. ..."

[Anonymous]

Hi All - So sorry for the delay!

As you know, eBay is obligated to collect and remit sales tax to certain states and foreign jurisdictions. More states and foreign jurisdictions are adopting new sales tax policies, and we regularly review and update our sales tax collection provisions in the user agreement.

Thanks much,

Kristi

[computeraidllc]

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@lacemaker3 wrote:

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@jaz_zy89 wrote:

"The second quote is about collecting sales tax from sellers, on the services that eBay has provided to them. This tax is on the eBay fees, and is paid by the sellers who received the services."

So does this mean that on top of Ebay fees that Ebay is now charging/collecting sales tax on those fees? That doesn'r seem right since not all states have sales tax so only some sellers will be taking another hit. Is this correct or am I misunderstanding?

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No, that's not what I said. You missed the next sentence, which was this:

"I'm not aware of any jurisdictions within the USA that require eBay to collect tax on their services, but some countries already require eBay to collect taxes on their services provided to sellers. ..."

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When they are saying collecting sales taxes on fees that is only for states that require that. Currently non have this. This has been added in case a state requires it. So sellers shouldn't have to worry. The only sales tax eBay collects is from the buyer in states that require them to do so.

[lacemaker3]

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@computeraidllc wrote:

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@lacemaker3 wrote:

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@jaz_zy89 wrote:

"The second quote is about collecting sales tax from sellers, on the services that eBay has provided to them. This tax is on the eBay fees, and is paid by the sellers who received the services."

So does this mean that on top of Ebay fees that Ebay is now charging/collecting sales tax on those fees? That doesn'r seem right since not all states have sales tax so only some sellers will be taking another hit. Is this correct or am I misunderstanding?

---

No, that's not what I said. You missed the next sentence, which was this:

"I'm not aware of any jurisdictions within the USA that require eBay to collect tax on their services, but some countries already require eBay to collect taxes on their services provided to sellers. ..."

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When they are saying collecting sales taxes on fees that is only for states that require that. Currently non have this. This has been added in case a state requires it. So sellers shouldn't have to worry. The only sales tax eBay collects is from the buyer in states that require them to do so.

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It has been added because some countries require it already. That has already been made clear. There was no need to reply to this to point this out again.

I don't expect that any states are going to add this any time soon. But, there are many sellers on eBay that are not in the USA. Even on eBay.com. 

[azbeadingaddict]

Hi Kristi,

I think the concern, or confusion, at least to me, is that this indicates sellers are responsible for paying sales tax when obligated by a state, on the items they sell, rather than the tax being added to the purchase/invoice and paid for by the buyer:

"In any jurisdiction where eBay has an obligation to collect sales taxes on sales you make using eBay Services, we may collect such sales taxes from you via the payment method on file under the terms of the Billing Agreement or via any other means available to us."

Could you clarify this please?

Thank you,

Debbie

[rams614]

eBay does add the tax to the buyer now, where they are required. Tonight I sent an invoice to AK and it was the first time eBay added the tax, and it stated it had to but that eBay would remit the tax to AK. I hope this helps some. I have been searching for hours to figure this out because this is the first time it has happened to me.