mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@stickerxchange wrote:It was mentioned by one of the customer service reps that it could be the reason. However Iv'e been selling for almost 20 years and this only started beginning of the year. They mentioned it might be a policy change?
It may be when you noticed it, but that isn't when it started.
There are currently 46 jurisdictions where eBay is obligated to collect and remit to the respective authorities for marketplace transactions.
Marketplace Facilitator Law by State (IST)
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Nebraska
- Nevada
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Pennsylvania
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Internet Sales Tax in the US
If you sell to buyers in the US, some jurisdictions may require you to collect applicable Internet Sales Tax on your transactions. As of July 1, 2021 a total of 46 jurisdictions require the collection of sales tax. In such cases, eBay collects and remits Internet Sales Tax on your behalf.
Learn more about Internet Sales Tax, on our Help pages, or from your tax advisor.
Starting in November 2019, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:
- In jurisdictions where eBay is required to collect Internet Sales Tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.
- Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.
- A record of the sales tax portion of the order will be available on the Seller Hub Order details page and through our Download order report.
Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action. These changes do not apply to sellers in managed payments.
https://www.ebay.com/sellercenter/resources/tax-information
" AND eBay may also be required to pay some sort of penalty to the appropriate state's taxing authority. " That would be a stretch and very unlikely. Ebay does not pay each state at the moment that the tax is collected from the buyer. I can't even imagine what that would look like in the number of transactions a state would be receiving hourly from all the sites that fall under these laws, like ETsy, Amazon ect.
Ebay would be remitting payment to the appropriate states, likely on a monthly basis. And if they made a mistake, it is likely they would have it fixed before it came time to remit the taxes to the appropriate states.
@stickerxchange wrote:What I was really wondering is anyone else experiencing no sales tax at all on customers orders. None at all? It has to be a software glitch.
Yes, we all do when the buyer is having us ship into a state that has NO sales tax.
@redmodelt wrote:I think some are not reading. If the OP lives in a tax state and buyers are from that state or any other that collect sales tax then eBay would be collecting, they aren't. This has nothing to do with the states that don't like Oregon or other non sales tax states.
Yes, sounds like another glitch.
Have a great day.
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Everything I've posted has to do with just that. I think most posters are on target. A couple strayed off though, you are right.
@stickerxchange wrote:Thanks I know all of what you conveyed to me. I've been doing this a long time. For whatever reason StickerXchange has stopped charging my customer's sales tax. Has to be a software glitch.
Stickerxchange is your Ebay ID. In other words your Seller ID. Seller do NOT charge sales tax to their buyers and haven't for a few years which is what I've previously explained.
ONLY Ebay charges buyers Sales Tax. NO SELLER can charge it on their own.
So I'm very confused by you continuing to say that StickerXchange has stopped charging the sales tax to your customers. YOU haven't been able to do that for a few years now.
@stickerxchange wrote:I'm well versed on the MFL's as I said I've been doing this a long time. They said there is nothing I can do. If there is a problem, they are responsible. I've already spent way too much time on this. Calling them, getting through and now community Chat. Believe me head is not in sand. No sales tax is being charged. What do you suggest I do about it? Cheers
Nothing. Not your responsibility.
When you file with your state and if they require you to report how much sales tax is owed, you can do that. Then deduct the entire amount that Ebay should have paid so you net a zero. No money owed by you for your Ebay sales.
Keep in mind I said IF your state requires you to report this as not all states do.
