Need Help With Upcoming Sales Tax States for 2019

[lqq2289]

It is still unclear to me about EBay collecting sales tax on 4 States next year. I live in Florida & have never charged sales tax anywhere. After calling EBay, they said I don’t have to change any ads about sales tax. They will automatically collect from Buyer & remit.

Does Not sound correct to me! They also said tax money collected does not go into my PayPal account at. Unsure about possible refunds, does EBay refund sales tax money if something is returned.

Any help would be greatly appreciated!

[orangehound]

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@lqq2289 wrote:

It is still unclear to me about EBay collecting sales tax on 4 States next year. I live in Florida & have never charged sales tax anywhere. After calling EBay, they said I don’t have to change any ads about sales tax. They will automatically collect from Buyer & remit.

Does Not sound correct to me! They also said tax money collected does not go into my PayPal account at. Unsure about possible refunds, does EBay refund sales tax money if something is returned.

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What you heard from eBay is exactly how Amazon does it.  Amazon charges the sales tax and then pays it on behalf of the seller ... seller never handles the sales tax money.  In other words, you do not have to do anything, unless you reside in one of those states, and things in 2019 should operate just like they do in 2018.

If you are looking for an example here on eBay, think of the Global Shipping Program ... the buyer has to pay a hefty shipping fee on top of what you might charge, but (as far as you are concerned), the buyer just paid for the item and whatever domestic shipping you had on the item.  You never see those GSP added charges.

[lacemaker3]

@lqq2289,

Since you live in Florida, you should be registered with Florida, and collecting and remitting sales tax to the state of Florida for all sales that are delivered within Florida. Here is the Florida web site about this. You can find out how to register, how much to collect, and when and how to remit it here:

Florida Dept. of Revenue - Sales and Use Tax

When eBay starts collecting sales tax for those states with Marketplace Facilitator laws (beginning in Jan 2019, 4 states scheduled so far, more to come), you will not need to do anything. eBay will handle all of the sales tax collection. If you need to refund someone, just make sure you refund through eBay (which you should be doing anyway).

If/when eBay starts collecting for Florida, then you will not need to collect or remit for sales to Florida any more.

[lqq2289]

Thanks, very helpful. So I do not have to show any sales tax charge thru any of my ads? I use immediate payment process rather than send invoices. Seems to me the Buyer won’t be aware of sales charge until its bought & paid.  Are you planning on doing anything with your ads regarding sales tax?

[lacemaker3]

Sales tax is already shown on the Payment & Shipping tab, if the listing has been set up to charge it.

You don't need to add anything to the description.

[orangehound]

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@lqq2289 wrote:

Thanks, very helpful. So I do not have to show any sales tax charge thru any of my ads? I use immediate payment process rather than send invoices. Seems to me the Buyer won’t be aware of sales charge until its bought & paid.  Are you planning on doing anything with your ads regarding sales tax?

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Nope, I'm not changing a thing.  I only collect and pay sales tax in Virginia (that is my only tax nexus).

[dirk12955]

I'm already seeing my customers in Australia paying sales tax. Ebay is collecting it and I'm not even aware that my customer paid sales tax (Or whatever kind of tax) until after the fact.