OT and I'm so confused about the tax collection.

[magpie-market18]

Okay, I live in Texas and today eBay will start collecting for me on TX residents that I had always collected and remitted myself.  The information I found says that I don't need to do anything that eBay will just start doing it, but what I can't find is this: Do I need to go into each listing and remove my business preference "collect sales tax" rule on items that were  listed before the rule took effect today? I don't want double tax anyone or have them think I'm trying to pull something hinky, but I don't really want to go into each of my 206 listings if I don't have to.  I've called, but can't seem to get a straight answer.  

[rubiano98]

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@magpie-market18 wrote:

Okay, I live in Texas and today eBay will start collecting for me on TX residents that I had always collected and remitted myself.  The information I found says that I don't need to do anything that eBay will just start doing it, but what I can't find is this: Do I need to go into each listing and remove my business preference "collect sales tax" rule on items that were  listed before the rule took effect today? I don't want double tax anyone or have them think I'm trying to pull something hinky, but I don't really want to go into each of my 206 listings if I don't have to.  I've called, but can't seem to get a straight answer.  

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As an Ebay buyer tax is automatically charged to me every time I make a purchase. My advice to you is to remove the reference to tax in your listing and let the automated system do its work. The tax collection burden is not on you and there is nothing you need to do

[1940fc]

Hmmm..if you were to edit all of your listings by removing your Sales Tax Collection preference...as Ebay is not yet collecting the sales tax for every state (only the mandatory ones) .and you sell to a non-mandatory state..your tax collecting preference will no longer be in your listings & it might be hard to collect it at time of sale then. You could have to pay the tax out of pocket.  

[1940fc]

What Rubiano says make sense...but is Ebay collecting taxes across the board now?  If so..then yepper..that`s what I`d do

[magpie-market18]

But would the other states matter? I'm only required to collect from residents in Texas since that is where I'm located and that's how I have my sales tax rule set. Wouldn't the other states automatically fall under eBay's system since I wasn't required to collect for them in the first place?

[mforjan]

This is what I got today in my email:

As you may be aware, 11 new states have adopted Internet Sales Tax policies as of October 1, bringing the total to 34 states that now require the collection of sales tax. As the impact of this tax law becomes more apparent, PayPal and eBay are making changes that will make Internet Sales Tax collection less complex for buyers and for you.

Starting in November 2019, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:
In states 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.

We understand that the holiday selling season is nearly upon us and we are working to make this transition as smooth as possible.

Learn more about Internet Sales Tax in the eBay Seller Center. If you have questions about how Internet Sales Tax may affect you, we recommend consulting with your tax advisor, or our partners Avalara and TaxJar.

As always, thank you for selling on eBay.

Sincerely,
eBay Team

[rubiano98]

It is my understanding that sales is collected according to where the buyer lives. Every time I make a purchase on Ebay I pay the final cost of the item, plus shipping, if any. Then another separate fee is tacked onto my PayPal account - the sales tax I am paying. It's broken out as a separate amount.

To tell the truth, I don't know if it's Ebay or PayPal that is calculating the tax amount. Doesn't really matter.

You could call PayPal and ask them how the sales tax thing works. 

[oncoyotemountainart]

In California I have to remit sales tax yearly on what I sell IN CALIFORNIA.  I have no clue about sales tax being collected for other states which sounds really hairy for a small seller like me if I have to start keeping track and accounting to 33 other states???  But that issue not withstanding, and assuming that eBay has my tax sale info, gods I hope they do, is the state going to automatically know how much sales tax was paid for November forward and how am I going to reconcile at the end of the year with the state?

So once again eBay has made what was simple, and that I understood and could manage a freaking nightmare for me.