It's a result of the US Supreme Court decision in the case of South Dakota v Wayfair, Inc. The decision is dated June 21, 2018, nearing six years ago now.
The State of South Dakota wanted sales tax revenue on all those internet purchases that South Dakota residents were making from Wayfair, Inc. (More precisely, online purchases from Wayfair, Inc., that are delivered to addresses within the State of South Dakota.) The Supreme Court said, oversimplified, "OK, sure, South Dakota can collect sales taxes on internet-based purchases."
Then the other 44 states that charge statewide sales taxes essentially said, "Hey, we want sales taxes, too!"
So, over the following years, each of those 45 states implemented their own Marketplace Facilitator sales tax laws. They all have Marketplace Facilitator sales tax laws now -- except for states that have no statewide sales taxes at all. Those five states are Oregon, Montana, New Hampshire, Delaware, and Alaska. Some communities within Alaska do charge sales taxes, but the state of Alaska, as a whole, does not.
For the purposes of sales tax, eBay is a Marketplace Facilitator. As such, eBay is required by laws to calculate, collect, and remit sales taxes to the appropriate states.
albertabrightalberta
·2 years ago
PROFILE SIGNATURE! NOT DIRECTED TO YOU: I can explain it to you but I can't understand it for you.104View listings
The buyer's state requires that the buyer pay tax to them.
So buyers pay you (seller), ebay deducts fees from the full payment (item price, sales tax, shipping charge), they deduct the sales tax and they forward it to the buyer's state department of revenue.
buyselljack2016
·2 years ago@shopsmartgeneva
Deduct................because it is not part of your "earnings".
"You" do not get the sales tax payment. It is just processed as part of what the buyer paid.
Collect..............as other posted............... eBay is required by law to collect it, and then remit to the buyer's jurisdiction.
monroe67
·2 years ago"Why ???"
It's a result of the US Supreme Court decision in the case of South Dakota v Wayfair, Inc.
The decision is dated June 21, 2018, nearing six years ago now.
The State of South Dakota wanted sales tax revenue on all those internet purchases that South Dakota residents were making from Wayfair, Inc. (More precisely, online purchases from Wayfair, Inc., that are delivered to addresses within the State of South Dakota.) The Supreme Court said, oversimplified, "OK, sure, South Dakota can collect sales taxes on internet-based purchases."
Then the other 44 states that charge statewide sales taxes essentially said, "Hey, we want sales taxes, too!"
So, over the following years, each of those 45 states implemented their own Marketplace Facilitator sales tax laws. They all have Marketplace Facilitator sales tax laws now -- except for states that have no statewide sales taxes at all. Those five states are Oregon, Montana, New Hampshire, Delaware, and Alaska. Some communities within Alaska do charge sales taxes, but the state of Alaska, as a whole, does not.
For the purposes of sales tax, eBay is a Marketplace Facilitator. As such, eBay is required by laws to calculate, collect, and remit sales taxes to the appropriate states.
albertabrightalberta
·2 years agoThe buyer's state requires that the buyer pay tax to them.
So buyers pay you (seller), ebay deducts fees from the full payment (item price, sales tax, shipping charge), they deduct the sales tax and they forward it to the buyer's state department of revenue.