eBay

silverfox_records · ‎09-29-2023

I am trying to figure out how often Ebay remits the payment to the states. I started selling in August (I am in Oklahoma) and to date, there hasn't been a payment made to my state Sales Tax office. With September coming to a close, I'll need to file again for the month of September and want to ensure that the state isn't going to hunt me down for this money that Ebay collected for my sales.

I tried calling and chatting with Ebay's India support but they couldn't understand my question and kept telling me to talk to a tax advisor. How is a tax advisor going to know when Ebay makes tax payments? Come on Ebay, train your people better....ugh.

brightlightbookseller · ‎09-29-2023

Because eBay is a Marketplace Facilitator, they remit taxes on their schedule (yes, probably quarterly) for themselves. Not in your name. You have no sales taxes to remit to the state yourself, the marketplace (eBay in this case) handles that all for you and it does not go into your business name. Imagine how much more of a hassle that would be if you had to make sure they were doing that! You simply report the sales and deductions, etc, on your taxes and do not need to account for sales taxes for those sales.

turtles-trading-post · ‎09-29-2023

And when folks whine that eBay is charging their fee including the sales tax, remember that they are providing this service to you.

Sending America's collectibles where they belong, one auction at a time!

albertabrightalberta · ‎09-29-2023

@silverfox_records wrote:
I am trying to figure out how often Ebay remits the payment to the states. I started selling in August (I am in Oklahoma) and to date, there hasn't been a payment made to my state Sales Tax office. With September coming to a close, I'll need to file again for the month of September and want to ensure that the state isn't going to hunt me down for this money that Ebay collected for my sales.

I tried calling and chatting with Ebay's India support but they couldn't understand my question and kept telling me to talk to a tax advisor. How is a tax advisor going to know when Ebay makes tax payments? Come on Ebay, train your people better....ugh.

Your own sales don't make you liable for sales tax to your state.

The sales tax is collected from buyers who must pay based on the buyers' own state's sales tax policies. Ebay collects when buyers pay and they submit taxes to each buyer's state.

If you live in a state with a sales tax, you pay that sales tax when you purchase and item (on ebay) and ebay submits the payment to your state. Again, you don't need to claim it.

If you pay quarterly taxes, that's based on the amount of income you're expected to owe taxes on from your sales. Even the 1099k you will receive doesn't include the sales tax collected by ebay since it was never in your possession. The 1099k will include the total payment on which the FVF is charged.

albertabrightalberta
Volunteer Community Mentor

buyselljack2016 · ‎09-29-2023

@silverfox_records

eBay has been collecting/submitting sales tax to Oklahoma since 2019.

Do you have an Oklahoma "sales tax" form that you are attempting to complete/submit?

Do you have sales to buyers in Oklahoma subject to Oklahoma sales tax?

bafosdeals · ‎09-29-2023

eBay will submit sales taxes to your and other states based on each state’s requirement. Usually that is monthly, as only very small businesses are typically allowed to file quarterly. The filing requirements will vary by state but are usually based on sales volume.

colfaxstation · ‎09-29-2023

And EBay collects the discount the states pay sellers. So you pay the commission on the tax and EBay gets a refund from the states. EBay collects on both ends.

monroe67 · ‎09-29-2023

"I am trying to figure out how often Ebay remits the payment to the states. I started selling in August (I am in Oklahoma) and to date, there hasn't been a payment made to my state Sales Tax office. With September coming to a close, I'll need to file again for the month of September and want to ensure that the state isn't going to hunt me down for this money that Ebay collected for my sales.

I tried calling and chatting with Ebay's India support but they couldn't understand my question and kept telling me to talk to a tax advisor. How is a tax advisor going to know when Ebay makes tax payments? Come on Ebay, train your people better....ugh."

Concerning your sales that are done solely through eBay:
Nothing about sales taxes on those transactions are Your Job. They are eBay's Job.

eBay calculates the sales taxes. eBay collects the sales taxes. eBay reports the sales taxes to the states where your items were delivered. eBay remits the taxes to those states.

If eBay makes an error anywhere along the line, eBay is responsible for fixing it and paying any penalty that might be incurred.

All this is because of state laws on Marketplace Facilitators -- such as eBay -- which came about as a result of the US Supreme Court decision in South Dakota v Wayfair, in 2017, I think. (I really ought to have learned that year by now; I will work on it . . . . .)

And because eBay does all that work, eBay retains the final value fee percentage on the amount of sales tax processed on each transaction. This is a very good deal, in my opinion.