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Charging sales tax on invoice
I charge my sales tax rate when selling, not the buyers state rate, correct.
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I charge my sales tax rate when selling, not the buyers state rate, correct.
monroe67
Mentor1 year ago"I charge my sales tax rate when selling, not the buyers state rate, correct." Incorrect.
YOU, as an eBay seller, don't need to do anything concerning sales taxes.
Five states have no sales taxes at all, and more than half of the other 45 states also charge sales taxes on shipping costs.
eBay calculates the sales tax that your buyer has to pay, based on the zip code of the delivery address provided by the buyer.
eBay is required by the laws of those 45 states to collect and remit the sales taxes so that you, an eBay seller, do not have to deal with sales taxes.
rjd2499
OP1 year agoFrom what it appears ebay charges sales tax on the shipping. Is that so? I sold an item for $3.50 they got $1.09 sales tax from buyer. Shipping and item came to $9.50. 1.09 tax is 11.5% of $9.50. Am I right or some one explain what there doing.
lady_madonna
Mentor1 year ago@rjd2499
The buyer is charged sales tax on the price of item + shipping charges according to the tax rate of their state where the item is delivered.
monroe67
Mentor1 year ago"From what it appears ebay charges sales tax on the shipping. Is that so?"
Sometimes, yes. Sometimes, no.
eBay will charge and collect sales taxes on the shipping paid by the buyer, as well as the item's price . . . .
ONLY IF the buyer's state of delivery requires sales taxes on the shipping cost.