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Tax's collected by ebay
I am a new reseller (March 2024) and am filling out my state user tax form. My question is where can I find the sales tax's collected by ebay on my sales. I have the gross sales, but the state is asking for tax's collected.
Thank you inadvance for your help.
5 comments
rfmtm
Mentor1 year agoGenerally for most states you need to only report sales tax that you yourself collected and remitted, not the sales tax a marketplace venue, like ebay, collected and remitted on your behalf. Although you still have to report your total gross sales and then account for those sales exempt from the tax, which includes ebay gross sales.
Example:
Your gross sales from ebay was $10,000., and ebay collected 5% sales tax on $3000., for in state sales.
Your gross sales from your own in state sales are $5000., and you collected 5% sales tax on $4000., (with $1000., being exempt for say sales to a non profit or reseller with an appropriate tax exemption certificate for your state).
You then report gross sales of $15000., (ebay + your own sales) and then enter $11,000., exempt (ebay sales + your exempt sales), leaving you with $4000., of taxable sales. You then remit 5% of this amount or the actual amount of tax you collected, which ever is higher.
If your state requirements are different, which would be unusual, you would have to export your ebay gross sales and then sort and subtotal only sales tax collected for your state by ebay on your behalf. Come back if that is the case. If unsure call your state's revenue office.
tts55llc
OP1 year agoThank you very much for the information. I am in California, and it's a little confusing.
Thanks again
mr_lincoln
Mentor1 year agoHi @tts55llc
Here is PA, since eBay collects and remits the sales tax to the state, the collected sales tax amount line is entered as ZERO. Tax ID holders only have to report their total gross sales, NOT sales tax that eBay collected and is remitting to the state.
tts55llc
OP1 year agoThank you very much for the information, I owe you one. 🙂
mr_lincoln
Mentor1 year ago@tts55llc
You are more than welcome! LOL, you don't owe me one but I sincerely appreciate the sentiment!