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?

-

Thanks for any help, Amy

[perfumenmore]

That's not what I was lead to believe.  From what I understand eBay now collects the tax on orders and remits them to each state that now has online sales tax.  The seller doesn't need to do anything unless the seller sells more than 200K a year.  Then they need to have a tax ID and remit the tax themselves. Most small time sellers and hobbyists, like myself, don't need to report anything or need to have a tax ID #.  Since I'm a small time seller who doesn't get a lot of sales a week and just does this as a sideline it would be stupid for me to go through all that.  I wouldn't do it if I had to remit taxes to every state that now demands it.  

[timestreasuresllc]

Amy, I am in the same situation - a NY business.

[timestreasuresllc]

Sorry, anamandy, I believe you are incorrect. eBay as the Marketplace Provider/Facilitator is the one that collects and remits sales taxes on ALL sellers' items - it has taken over the seller's duties, and the volume/value of sales does not matter. Once you list an item on eBay it becomes an eBay sale.

If the sale is made to a state other than yours, you have no duty to do anything, eBay is responsible for everything re: sales taxes.

Here in NY, anyone who sells more than about a couple of garage sales ( I do not have the language handy) is supposed to get a number and report the income. They tax anything that moves and a lot that doesn't.

On the form I submit when remitting taxes there are two boxes: one for sales on which I collected tax and a second box for sales on which I did not collect tax. But I had better have documentation for the items that total up to the amount in Box #2.

[welby01]

As a result of this new policy I will only be purchasing my high level graded books offline at conventions. In the long run I anticipate Ebay losing sales due to this policy, the states did not consider that some items purchased on this site are for investment purposes and the increased costs limit the potential of the investment. 

[bonjourami]

Thats probably true, but it is what it is.

[the*dog*ate*my*tablecloth]

eBay is NOT collecting taxes for ALL  interState sales where tax is owed. They are ONLY collecting in Marketplace facilitator states. There ARE still states where sellers may have to charge and remit sales tax for cross border sales if their sales meet the threshold. AND buyers who may buy from those sellers who you have now confused by telling them eBay collects it all.

By telling people only eBay collects tax you are potentially causing problems for sellers shipping into non MF states.

[the*dog*ate*my*tablecloth]

So just to clarify, I got a letter from the PA DOR last year telling me I may be required to collect and remit sales into that state. They don’t have an MF law until July 1. Large Sellers are still collecting and remitting sales tax for sales to PA through June.

[mam98031]

---

@perfumenmore wrote:

That's not what I was lead to believe.  From what I understand eBay now collects the tax on orders and remits them to each state that now has online sales tax.  The seller doesn't need to do anything unless the seller sells more than 200K a year.  Then they need to have a tax ID and remit the tax themselves. Most small time sellers and hobbyists, like myself, don't need to report anything or need to have a tax ID #.  Since I'm a small time seller who doesn't get a lot of sales a week and just does this as a sideline it would be stupid for me to go through all that.  I wouldn't do it if I had to remit taxes to every state that now demands it.  

---

@perfumenmore 

I think you are confusing thresholds of other states with sales within the state you are in.  

Your responsibilities for the state you are in are different than for sales you ship to other states.  For OTHER states, if you are large enough to hit their thresholds and those states do NOT have Facilitator laws so that Ebay collects the tax, then you need to do the proper reporting and remitting of sales tax to those states.

Your responsibilities to the state in which you reside in and ship from are different.  If there is a Facilitator law for your state, then Ebay is now collecting your sales tax and remitting it to your state.  But you need to check with your state for the requirements they will continue to have for you reporting your sales.  

For example, in the state I'm in there is a Facilitator law, so I'm no longer collecting sales tax for any sales that I ship to someone within my state.  BUT I'm required to report my TOTAL sales that required retail sales tax to be collected, then I can take a deduction for the amount of those sales that EBay collected sales tax for, to arrive at a net amount I would still owe sales tax to the state on if any.

So check the requirements of your state so that you maintain the proper records so you can accurately fill out your state reports.

[mam98031]

---

@welby01 wrote:

As a result of this new policy I will only be purchasing my high level graded books offline at conventions. In the long run I anticipate Ebay losing sales due to this policy, the states did not consider that some items purchased on this site are for investment purposes and the increased costs limit the potential of the investment. 

---

@welby01 

In the long run buyers will get use to it.  I'm confident that it is costing us sales right now.  It is part of the reason sales are slow.  Buyer's don't like having to pay the taxes.  But buyer's will quickly find out that it is NOT just Ebay.  That most places they go to buy on the internet will be charging taxes where appropriate.

Investment purchases have never been exempt from paying sales tax as far as I know.

[welby01]

I understand your point but I can use my discretionary investment income on graded comics which granted are a more interesting investment vehicle and pay tax as well as shipping costs or save that money and invest in the market. Unfortunately I think in my personal case the market wins out. On the other hand I might use this opportunity to go to the monthly baseball card show in NYC as well as directly purchasing from small and local retailers. 

[mam98031]

---

@welby01 wrote:

I understand your point but I can use my discretionary investment income on graded comics which granted are a more interesting investment vehicle and pay tax as well as shipping costs or save that money and invest in the market. Unfortunately I think in my personal case the market wins out. On the other hand I might use this opportunity to go to the monthly baseball card show in NYC as well as directly purchasing from small and local retailers. 

---

Purchasing from your local retailers will still result in you paying sales tax.

[milepost182]

I am not quite sure where I said "all" states.... indeed there are states that have not yet been added to the list as you point out. And New Hampshire, for one, charges no sales tax at all.

Nor did I tell people that "ONLY" eBay collects the tax. (This IS an EBAY community discussion, after all.) It is collected by internet entities considered Marketplace Facilitators/Providers as you point out -- the big one most everyone has heard about being Amazon, which has been doing the collecting/remitting far longer than eBay.

Two important points for sellers in impacted states:
1. Make sure you're aware of whether you must collect/remit sales taxes yourself for sales made in any particular state (internet or otherwise) that are not on marketplace facilitator/provider websites.
2. Keep checking about your state status on eBay as far as whether eBay will take over collecting/remitting sales taxes for you.

[milepost182]

I would be happy that the PA DOR is on top of the issue and giving sellers a heads up in advance - we got nothing in my state. And as you stated, the operative word is "MAY" they did not say "MUST." I would be thankful for the heads up.

[soh.maryl]

I doubt that buyers who buy for resale only purchase online.

They also probably purchase at B&M stores also, and, unless, they have a resale license or permit, they will be paying tax there also.

[hephastion80]

I just got off of the phone with ebay and the NYS Dept of taxation and Finance. Ebay stated that they do not provide signed St-150's. Per the NY announcement on ebay's page, a public announcement of ebay's authority to collect is sufficient and you do not need a physical ST-150, or their Certificate of Authority number. The NYS Dept of Taxation of Finance confirmed this, along with any other "agreements" saying that ebay can collect on my behalf. They also advised that ebay is in fact registered in New York to collect. I saved a copy of the ebay and NYS announcements, and I plan to double check any other documents in my account that reference this.