Sales Tax on eBay

[mau-collectibles-4]

Hi all,

I sell philatelic items during my free time on eBay. But I am not a professional seller. I just have a basic account and not a business account.

For the first time in my selling career, after selling some items to a buyer located in Minnesota, and preparing the invoice so that he can send me the payments, I saw that I need to charge the buyer a Sales Tax of 7.13%.

Now, I live outside of the USA. Should I still pay these taxes? I am already paying taxes on the eBay sales, whenever necessary, to the Government of the country where I am located.

Could somebody please enlighten me about this issue. This is the first time I am facing this problem.

Regards

[lacemaker3 · Accepted solution]

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@mau-collectibles-4 wrote:

Hi all,

I sell philatelic items during my free time on eBay. But I am not a professional seller. I just have a basic account and not a business account.

For the first time in my selling career, after selling some items to a buyer located in Minnesota, and preparing the invoice so that he can send me the payments, I saw that I need to charge the buyer a Sales Tax of 7.13%.

Now, I live outside of the USA. Should I still pay these taxes? I am already paying taxes on the eBay sales, whenever necessary, to the Government of the country where I am located.

Could somebody please enlighten me about this issue. This is the first time I am facing this problem.

Regards

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@mau-collectibles-4:

No,  you don't have to pay those taxes, the buyer has to pay them. The buyer owes sales taxes to his state of Minnesota, and eBay is required to collect the sales tax and send it to the state.

Your buyer will pay the total on the invoice, you will receive the purchase price plus shipping less PayPal fees, and the sales tax will be sent to eBay so they can send it to the state. You don't need to do anything, eBay handles it. Don't try to change the invoice or remove the sales tax.

Information for sellers:

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

Information for buyers:

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771

[csbbct]

You will see the tax on the invoice, but that portion of their payment will be collected by eBay and eBay will report and pay the tax to the states.  You can find the list of states where eBay will collect sales tax on the Shipping and Payments tab in listings, in the Learn More link under Taxes.

[mau-collectibles-4]

Thanks for the reply. Now everything is clear.

[mau-collectibles-4]

Thanks for the reply. Now everything is clear.