buyer pays cash for local pick-up purchase - how does eBay collect fees/taxes?

Question

If a buyer comes to pick up an item and pays cash do I collect the tax, and if so, what do I do with it? Also, how does eBay then collect their fees?

mr_lincoln · Answer

hI @phrenesia

There are a number of ways the Local Pick up transactions can be "completed" for fees, sales tax, etc.

For Cash transactions (and to confirm a pre paid local pick up was completed):

-A Buyer receives a QR code and an email with a 6 digit code, they take that to the pick up with the Seller and if the Seller uses a mobile device they can scan the QR code or get the 6 digit code from the Buyer

-I don't use a mobile device so I use the pull-down menu on the sold item AFTER the Local Pick up and select Shipped and I believe there is one for Paid for (its been a while). eBay then charges their fees.

-I like Cash at pick up myself but most Buyers pay through eBay which is fine too ...

-The Seller is then responsible to report the Sales Tax to their state.

-As you if a Buyer pays through eBay the FVFs are taken out at the time of the purchase