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Charging sales tax on shipping.
Does ebay always charge sales tax on shipping. Are pocketing the money?
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Discussions in this board are limited to the original poster and Community Mentors
Does ebay always charge sales tax on shipping. Are pocketing the money?
house*of*paws
Mentor2 years agoHi @flst01
The majority of states require eBay to collect tax on shipping cost of the item AND to remit the tax money to the state treasury.
If the state doesn’t require shipping to be taxed … then eBay doesn’t tax shipping cost for that state.
eBay doesn’t pocket tax money.
woodland_gnome
·2 years agoNot always. Only when the law of the buyer's state requires it.
Even for those states that generally don't require including the shipping fees in the calculation of the sales tax, many if not most of those make an exception for circumstances that indicate that the buyer may be paying the seller more than the carrier's cost (e.g. shipping AND HANDLING) and those circumstances in general are what apply in eBay transactions.
golfingaddict
Mentor2 years agoEvery state has different rules regarding sales tax.
eBay is following state laws when they collect sales tax and they submit the sales tax to individual states.
It is against the law to collect sales tax and not remit it to the state. I doubt that eBay "pockets" the money. Collecting and remitting sales tax is a big undertaking and I am sure that they have computer programs and accountants to assist with this and insure that it is done correctly.