mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@autopiacarcare wrote:
@mam98031 wrote:Just read through this thread. The answers are here. You can see the details of the transactions on the transaction report you can download. You will not see it on the screen you are looking at. At least not yet. I have suggested that PP change this format and that on the summary page they lump PP fees and sales tax together. I hope others will also ask PP to change these reports to make it easier on all of us.
@mam98031 - That is not correct information. You are talking about the summary page, but their screen shots were of the PayPal transaction details page and the eBay order details page, respectively.
If you look back at the screenshots I provided at the beginning of this post, "Tax Collected By eBay" should be a line item deduction on that screen for MF states. The reason they are not showing on that screen in that screenshot is because the tax was not sent back to eBay, just like in my 4 transactions where the tax did not get deducted back out to eBay.
This poster also stated that it doesn't show as a Partner Fee in the PayPal report either. So obviously they are already familiar with how to view that report and how the tax should be displayed, they are just saying that it wasn't showing the tax sent to eBay for this transaction. Also, they said it was shipping to Alabama, which has been a MF state since July, just to avoid any confusion.
This is not a lack of knowledge regarding how to find the information in PayPal reports and it isn't a misunderstanding of how Marketplace Facilitator taxes are supposed to work. It is a glitch in communication between eBay and PayPal that is causing the tax not to be sent to eBay and reported properly - which has now been confirmed by someone else.
As far as answers, I still have none. PayPal says it is an eBay issue. I am still waiting on a follow up from eBay.
My post above doesn't say anything about Ebay pages or reports. I was specifically talking about PP. And as I said above you can see the complete details of a transaction on the downloadable transaction report that I provided a pic of in my previous post.
I understand that you have a separate issue where you had some sales that do not appear to have had the sales tax removed and sent to Ebay. That is a different issue and one I was not addressing in the post you are referring to.
Further as I understand it you have this reported to Ebay via this thread and on the Weekly Chat and it is being looked into. Hopefully you will have answers next week. While this is certainly an important issue for you and any other sellers affected by it, Ebay is legally responsible to pay the tax to the appropriate state, not the seller. So it is in Ebay's best interest to get this resolved ASAP. For any sellers caught up in this issue, I would just advise them to leave this money in the PP account until it is resolved. Don't pull it and don't spend it.
OK clearly we are miscommunicating. I was responding to someone other than you with a question other than yours. I wasn't wrong in what I shared with them. My response to the other member just doesn't have anything to do with your issue, which doesn't make me wrong, it just means I was addressing something else.
From the screenshots the other poster provided, they were looking for the information in the wrong place. No one can see on the screen they were looking at if the money was pulled out or not. That part of the transaction is not shown on that screen.
The can't tell, no one can tell from the screenshot they provided if the money was removed to Ebay. They have to look at the detailed report. Which I provided a screenshot of the place where they can find such a report. There may be other places to find the info as well.
@autopiacarcare wrote:
@mam98031 wrote:
Further as I understand it you have this reported to Ebay via this thread and on the Weekly Chat and it is being looked into. Hopefully you will have answers next week. While this is certainly an important issue for you and any other sellers affected by it, Ebay is legally responsible to pay the tax to the appropriate state, not the seller. So it is in Ebay's best interest to get this resolved ASAP. For any sellers caught up in this issue, I would just advise them to leave this money in the PP account until it is resolved. Don't pull it and don't spend it.This issue isn't just about the sales tax and whether or not it gets paid to the states. That is between eBay and the states and I'm sure eBay will make sure they are covered there regardless of this issue.
When this change was first announced, one of the biggest concerns I saw expressed on this message board was that those tax amounts would now be included in gross sales on the 1099K forms PayPal will be sending to the IRS.
I highly doubt a few dollars here and there are going to make a huge difference as far as what anyone actually has to pay in income taxes. However, not being able to properly track and account for every amount in and out could lead to discrepancies in record keeping which could be red flags that may increase the risk of being audited.
No one wants that headache and if it does happen, sellers need to know that the reports and records we are being provided by eBay and PayPal are accurate. If they are not, we need to know why and it needs to be corrected.
1099K's do NOT report Gross sales. No 1099K reports that no matter who is issuing it. It reports Gross Receipts and Gross Receipts is NOT the same thing as Gross Sales.
The IRS defines "Gross receipts" as "The total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses." The federal government uses "Gross sales" to define income based on the total sales price of your reported inventory sold.
All sellers that receive a 1099k, if they are using the amounts reported on this form as their Gross Sales, then they very well may be paying too much tax to the IRS.
For sellers a few $$s here or there probably won't make much of a difference, but it sure will for Ebay overall because that money will come out of their pockets as they are legally responsible to collect and remit the taxes in all states with a MFL.
The sales tax is just one more thing that a seller needs to deduct from their Gross RECEIPTS to arrive at their Gross Sales.
@mam98031 wrote:From the screenshots the other poster provided, they were looking for the information in the wrong place. No one can see on the screen they were looking at if the money was pulled out or not. That part of the transaction is not shown on that screen.
The can't tell, no one can tell from the screenshot they provided if the money was removed to Ebay. They have to look at the detailed report. Which I provided a screenshot of the place where they can find such a report. There may be other places to find the info as well.
No one can tell from the PayPal transaction detail page whether the tax was sent to eBay?
I'll refer back to my original screenshots on this thread and highlight the important parts.
Exhibit A is a PayPal transaction detail page in which the tax was properly sent back to eBay. This can be verified by the line at the bottom showing "Tax Collected by eBay" as a deduction of the sales tax amount. That same amount is also showing in the downloaded report as a Partner Fee which refers to the original transaction number.
Exhibit B is one of the transactions where there is no record of the tax being sent back to eBay. We've already established that since this transaction was shipping to Arizona, which is a marketplace facilitator state, the tax should be going to eBay. Notice the lack of the "Tax collected by eBay" line. I can also confirm that there is no entry for a Partner Fee in the downloaded reports for this transaction.
So yes, your belief that no one can tell if the money was sent to eBay from that screen is absolutely wrong. It has been clearly demonstrated that part of the transaction should be shown on that screen if the tax was sent back to eBay and is not exclusive to the downloadable report.
The most simple and likely reason it didn't show in the screenshot from that other poster is that the tax was not deducted out as it should be, just like they said and just like I have shown happened with 4 of our transactions.
That poster clearly did know where to look. They weren't looking in the wrong place, they were looking right where it should have been and it wasn't there. They also stated that it didn't show it as a Partner Fee in the downloadable report either. That means they had already looked at the report before even posting, so there is really no point in saying that the information is there if they just look in the right place. It's not there and that is the whole point.
Just because you haven't experienced an issue yourself, don't assume others don't know what they are talking about or just don't know where to look.
@playas_57 wrote:Funny thing is.. the LAW doesn't go into effect here in Illinois until JAN 2020. Why did they start taking taxes out 2 months early? And charging taxes on shipping?! I know a few lawyers who have combed through the new tax bills and don't see anything ordering shipping taxes. Also the Buyer AND Seller both pay taxes on the same item. "Double Dipping"? Just saying
The lawyers are looking in the wrong place and honestly they should know that. You / they need to be looking in your states sales tax laws.
It is easy to assume Ebay is doing something wrong, but in reality they are not. They are just following the laws of each state that has passed MFLs.
Sellers do NOT ever pay sales tax on something a buyer purchases on Ebay. Sales tax is ALWAYS paid by the buyer. Sellers in states that do not have MFLs but they do require sales tax, then those sellers will still need to collect sales ta
We seem to be making this more confusing that necessary. Let me try this again.
Your pics are from the payment details NOT TRANSACTION Details. The two are different. I've provided a few screen shots of where to locate the report, but I'm happy to do it again.
This is a downloadable report only. So you need to view it in a worksheet program. I use Microsoft Excel. This report gives the complete details. When the sales tax is removed and sent off to Ebay, that line in the report has a description that says "partner fee". I just noticed they put a message on this report screen in PP. Let me give you a new and improved pic.
I am aware and do not dispute that you have some transactions where it does not appear Ebay has pulled the money from your account. We've discussed this earlier in the thread and I've said. I am NOT addressing that issue and I'm honestly unsure as to why you want to make it seem as if I am when I've repeatedly told you that I'm not.
Most everyone's transactions have gone through PP just fine. For those that want to look at the details on their transactions the report I show above is a great resource. Not everyone is having the same problem as you about pulling the money out and some just want to see the details of the transactions, which the report above can provide for them.
If you still want to insist that I'm providing incorrect information. I'm just going to leave it alone and let you guide the way. I'm not interested in getting into a back on forth on this, there has been a bit to much of that already IMHO.
@mam98031 wrote:Your pics are from the payment details NOT TRANSACTION Details.
I am aware and do not dispute that you have some transactions where it does not appear Ebay has pulled the money from your account. We've discussed this earlier in the thread and I've said. I am NOT addressing that issue and I'm honestly unsure as to why you want to make it seem as if I am when I've repeatedly told you that I'm not.
Most everyone's transactions have gone through PP just fine. For those that want to look at the details on their transactions the report I show above is a great resource. Not everyone is having the same problem as you about pulling the money out and some just want to see the details of the transactions, which the report above can provide for them.
If you still want to insist that I'm providing incorrect information. I'm just going to leave it alone and let you guide the way. I'm not interested in getting into a back on forth on this, there has been a bit to much of that already IMHO.
If you believe calling that the Transaction Details page is incorrect, you should contact PayPal and tell them to change their design, because that is exactly what they call it.
Regardless of what you call that page, the point was the information should have been on that page but it wasn't, because the tax was not deducted to eBay like it should be. I have to wonder why you are trying to address issues on this thread that no one here brought up, especially the person you were responding to.
For some reason you seem to approach things with your first assumption being that the person posting about an issue is somehow wrong or uninformed, rather than that they may be reporting a legitimate issue that they have researched and educated themselves about before posting here.
You did it when you first responded to me, assuming that I was talking about a sale to FL (even though I specifically said the transactions were to marketplace facilitator states) and dismissing it as "not a problem" based on that faulty assumption.
You did the same thing to this other poster who quite clearly stated they were having the same issue, but instead of taking what they said at face value, you assumed they were just looking in the wrong place and needed to be educated about how to do it correctly.
I understand that people are sometimes (maybe even often) wrong about issues here, but I see no reason to assume that from the start - it comes off as condescending and quite frankly, rude.
I get that most people are not having this issue. The point of this thread was to bring awareness to the fact that it is happening and to provide a place for those who are being affected to report it/share their experience so we can maybe get it resolved.
If you really do want to "let me guide the way", then please respect that was the intent of this thread and respect that those who may post saying they are having the same issue might be smart enough to know what they are talking about when reporting their own experiences.
I have contacted PP to ask for a design change on both the transaction detail report you can download and on the Activity page you can view. I apologize, I thought I had said that before on the thread. I believe I've also encouraged others that don't like how it is presenting to also contact PP asking for changes as they see fit.
