Sales Tax

Question

State of Missouri is sending me invoice for 2023 sales tax plus fines and penalties! They have decided I have "burden of proof" to show that Ebay paid tax collected from my Missouri buyers. Not sure how to deal with this issue? BTW, my tax was $ 38.46 before penalties; Missouri is threatening to take out a lien on my house!!! OMG. It's not really the amount that I am upset about, but Ebay should have already paid it for 2023. Any help would be greatly appreciated. Thank you.

monroe67 · Answer

You may also want to check with a tax preparer who is knowledgeable about Missouri's state income tax laws.

I'm sure a local office of H&R Block or a similar company would be able to help you.

I believe Missouri was the last of the states to adopt Marketplace Facilitation laws, effective January 1, 2023. Those laws require eBay to collect sales taxes from buyers. By 2023, eBay had already been collecting sales taxes from buyers in 44 other states, some for four years, and their (eBay's) computers were handling those states' sales taxes effectively.

Unfortunately, the "burden of proof" is on you. The State of Missouri probably does not have that jurisdiction over eBay, Inc., but they do have jurisdiction over you, as a Missouri resident and a person selling things from the state of Missouri.

Request your financial records from eBay for all of 2023; if you can, get 2024 and 2025 as well. You might be glad you have them, even if Missouri does ever start trusting that eBay is following its sales tax laws in the same way that eBay does for the other 44 states with statewide sales taxes.

My selling ID downloads her monthly eBay financial summaries and details and her monthly eBay "tax invoices" and saves them. (Those are usually available on the first or second day of the following month.) She's been doing that for at least the last three years. If my state ever asks for details like Missouri has asked from you, it would take a few minutes to print everything and/or forward the documents electronically to the taxing authority.

Best of Luck !!

mr_lincoln · Answer

Hi @shopaholic01-1689

I suggest reaching out to eBay and ask them how they report their sales tax collection and remittance for Sellers for the State of Missouri. Your state offers marketplace facilitators (eBay in this instance) a 2% discount on timely remittance of sales tax they collect for Sellers.

-Contacting eBay via Social Media:

Contact customer service by sending a PRIVATE message on social media. Customer service verifies your identity before responding.

6 AM to 6 PM PST

https://x.com/askebay

https://www.facebook.com/ebay

https://www.instagram.com/ebayforsellers/