Sales Tax Collected by eBay

[amyo48]

eBay has collected the sales tax on the last 2 orders in NY .

This sales tax amount is not listed on the packing slip or on the order details, or in Pay Pal.

I have collected the NY sales tax  in the past and sent it in as required.

Questions:

Now that eBay collects the tax, do I have to report this ?

Do I still need a sales tax number?

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Thanks for any help, Amy

[slippinjimmy]

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@amyo48 wrote:

eBay has collected the sales tax on the last 2 orders in NY .

This sales tax amount is not listed on the packing slip or on the order details, or in Pay Pal.

I have collected the NY sales tax  in the past and sent it in as required.

Questions:

Now that eBay collects the tax, do I have to report this ?

Do I still need a sales tax number?

-

Thanks for any help, Amy

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Contact the NY State Tax Department: 518-485-2889
https://www.tax.ny.gov/help/contact/default.htm

If you do not sell through ANY other venue/method you may not need to continue to file but you need to ask.

[mam98031]

You are correct.  Ebay is now collecting the sales tax for NY.  So for any sale you have on Ebay you will not be collecting the tax and remitting it to NY, Ebay will do that from here on out.

You need to check the requirements for your state.  Yes you are likely to have to report the sales you have had on Ebay that was subject to NY sales tax, with a deduction for the amount of sales that Ebay collected the taxes and remitted them directly to NY.  So make sure you track everything.  But make sure you check for your responsibilities to report in your state.

[amyo48]

Thank you for your reply.

Would you know where the eBay collected sales tax information can be found?

I always used my Pay Pal Reports for sales tax that I collected - along with my own

eBay records printed out for each NY sale.

Thanks, Amy

[goodluckselling]

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@amyo48 wrote:

Thank you for your reply.

Would you know where the eBay collected sales tax information can be found?

I always used my Pay Pal Reports for sales tax that I collected - along with my own

eBay records printed out for each NY sale.

Thanks, Amy

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You can download a CSV file with all your sales and the tax info is included in that report.  From seller hub and using all orders page select the time frame you want to download and use the download tab located top right area.

Good Luck Selling!

[7606dennis]

As another has recommended, contact your state's taxing authority and find out how you should handle it.  

[amyo48]

Hi,

I just downloaded the report as you instructed.

These last 2 NY sales do not have a sales tax amount listed.

So it would seem that I am not connected to the sales tax and therefore do not have to report anything.

I will continue to find out for sure.

There  must be many sellers that are in this same situation and who need this information.

I will post any further progress in solving this and look forward to any information from fellow eBayers.

Thank you, Amy

[gracieallen01]

ebay, generally, works on a 'need to know' basis.  If you don't have a personal involvement or business reason to know how much tax they are collecting or how much tax they are reporting to the various states, you will, more than likely, not have the information provided to you in a convenient or easy-to-find manner. 

As already stated, you really need to TALK to YOUR state tax agency', to confirm what you need- and do not need - to do.  Most people will probably get the response of, 'You don't have to do anything for interstate sales', and if you sell other than online, it will probably be, 'report the same as always', but you need to check.  It may be as easy as going online to their (the tax board) website and checking the FAQ's.

[mam98031]

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@gracieallen01 wrote:

ebay, generally, works on a 'need to know' basis.  If you don't have a personal involvement or business reason to know how much tax they are collecting or how much tax they are reporting to the various states, you will, more than likely, not have the information provided to you in a convenient or easy-to-find manner. 

As already stated, you really need to TALK to YOUR state tax agency', to confirm what you need- and do not need - to do.  Most people will probably get the response of, 'You don't have to do anything for interstate sales', and if you sell other than online, it will probably be, 'report the same as always', but you need to check.  It may be as easy as going online to their (the tax board) website and checking the FAQ's.

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I don't think that is accurate for most states if not all states that have facilitator laws.  

Most states will likely have something similar that we have here in the state of Washington.  We still have to report our TOTAL gross sales to in state customers.  We can then take a deduction for the sales in which Ebay collects sales tax for or any other site we might be selling on that collects sales tax, then to the net amount.  And if you sell in other ways, you could have a balance in which you still need to remit sales tax to the state on.

It's seems pretty logical that each state will have some similar way of doing this as there are many many Ebay sellers that sell on multiple sites and maybe other venues.  So track EVERYTHING.  It is likely you will need the information.

[fab_finds4u]

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

 eBay began collecting and remitting tax on June 1 for NY sales.     

[gracieallen01]

True.  Sorry, I should have qualified that to specifically say something in regards to 'collecting' interstate taxes.  Otherwise it is business as usual.  The reporting all sales is just a part of the regular 'chore'. 

[mam98031]

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@gracieallen01 wrote:

True.  Sorry, I should have qualified that to specifically say something in regards to 'collecting' interstate taxes.  Otherwise it is business as usual.  The reporting all sales is just a part of the regular 'chore'. 

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Yes it but there are different section on the tax reports for different types of sales.  So it is important to make sure you track everything so that you can fill the reports out properly.

While I'm sure that some sellers on Ebay only sell on Ebay, that also will not hold true for many.  So sellers can easily have a mixture of what needs to be reported on their state forms.  They will be better served to make sure they have all the data so they can properly report to their states and not end up having to pay a taxes that have already been collected by a facilitator or have to pay sales taxes on their own because they didn't collect it from their customer.

[timestreasuresllc]

Per the NY information that appears from the eBay page listing it as one of the states where they are collecting sales tax, eBay (marketplace facilitator) is supposed to provide us with a form ST-150.  I know I read something about how eBay is going to do this - but I can't find it - can you help ?

[timestreasuresllc]

Re New York sales tax collection by eBay -

Here is the state explanation - https://www.tax.ny.gov/pdf/memos/sales/m19-2s.pdf

Here is New York's explanation/summary of a "Marketplace Provider" and their responsibilities - https://www.tax.ny.gov/pdf/memos/sales/m19-2s.pdf

which specifically says:

"Except as provided below, a marketplace provider must issue Form ST-150, Marketplace Provider Certificate of Collection,to its marketplace sellers for sales of tangible personal property that it facilitates for such sellers."

How do we get the ST-150 form from eBay for our tax records ?

[timestreasuresllc]

RE: NY sales tax - I looked further on the ST-150 form and found the text below. Note I marked a couple of important statements in RED - I "assume" eBay's Seller agreement is what's meant by the publicly available - but have they updated this ? Or where else do they "provide" us with the ST-150 form that NY wants us to retain in our records ?

Marketplace sellers

A marketplace seller is defined as any person who has an agreement with a marketplace provider under which the marketplace provider will facilitate sales of tangible personal property for the marketplace seller.

Liability relief for marketplace sellers

A marketplace seller who is registered to collect New York State sales tax is relieved from the duty to collect tax on a sale of tangible personal property and should not include the receipts from the sale in its taxable receipts if:

• the marketplace seller can show that the sale was facilitated by a marketplace provider from whom the marketplace seller has received, in good faith, a properly completed Form ST-150 certifying that the marketplace provider is registered to collect sales tax and will collect sales tax on all taxable sales of tangible personal property by the marketplace seller facilitated by the marketplace provider; and

• any failure of the marketplace provider to collect the proper amount of tax on a sale was not the result of the marketplace seller providing the marketplace provider with incorrect or insufficient information.

This relief of liability does not apply if the marketplace seller and marketplace provider are affiliated. Form ST-150 is one of the records that must be retained by a marketplace seller. See Tax Bulletin ST-770,

Recordkeeping Requirements for Sales Tax Vendors.

Where the statement provided above is not included in a publicly-available agreement between the marketplace provider and its marketplace sellers, the marketplace provider must provide its marketplace sellers with a properly completed Form ST-150 not later than ninety days after facilitating such marketplace sellers’ sales.