IL Sales Tax
Is there a report I can run to show all my sales in Illinois and how much tax was collected so I can pay what I owe to the state?
17 comments
Is there a report I can run to show all my sales in Illinois and how much tax was collected so I can pay what I owe to the state?
bashort
·9 months agoIn Illinois there are only 9 districts right now but it no doubt will expand, Illinois is always on the cutting edge of new innovative ways to increase taxes.
It is my understanding that the retailers occupation tax if applicable will also be submitted by ebay
lacemaker3
·9 months agoAccording to this flow chart (which was linked in the screenshot I shared earlier):
https://tax.illinois.gov/content/dam/soi/en/web/tax/research/taxinformation/sales/documents/pio-104.pdf (bottom left corner)
Marketplace Seller’s sales
• Marketplace facilitator is the retailer, not you.
• Taxes for sales made by a marketplace facilitator on behalf of a marketplace seller are incurred at the tax rate in effect at the purchaser’s location (destination rate)
Destination ROT
According to the other information on the Illinois government website (see the links I posted earlier) some businesses may also be liable for ROT on some sales, depending on how their business is set up. Just because they are a Marketplace seller, that does not necessarily mean that eBay is responsible for all their ROT (or other tax) liability.
One would hope that they would be covered for all their sales that were made through the marketplace (i.e. on eBay) but they should double-check to be sure.
bashort
·9 months agoHere is the pertinent info.
2. Form ST-1, Sales and Use Tax and E911 Surcharge Return, Questions
How do I report my own sales on Form ST-1 when I also make sales through a marketplace?
Your non-marketplace sales are reported on your Form ST-1. Sales made through a marketplace that is collecting and remitting taxes for you are not reported on your Form ST-1. Do not include and then deduct any marketplace sales on Form ST-1.
lacemaker3
·9 months ago@april1007
Your situation is different and unique because Illinois is the only state that uses origin-based sales tax (aka ROT), for local retailers in Illinois. All other states use destination-based sales/use tax, and most responders here are not aware that Illinois is different, so their answers may not be correct.
Things got complicated when Illinois passed a Marketplace Facilitator use tax law several years ago, and they have been passing other laws since then which have made the situation quite complicated. There is no single answer that applies for all eBay sellers in Illinois, it depends on your business situation and how you make your sales.
eBay is considered a Marketplace Facilitator in Illinois, and is required to collect use tax for all transaction that are delivered to a shipping address in Illinois. However, your business may be required to also pay taxes (eg state and local ROT or retailers' occupation tax) on sales delivered to Illinois, depending on how your business is set up (i.e. where your inventory is stored, if you also make local sales or only sell through the marketplace, etc.).
You need to follow the rules and requirements set up in Illinois. Here's a link to the IL government website about this. If you still have questions, after going through this, you need to speak to a local expert on sales and use tax in Illinois, (probably a CPA).
https://tax.illinois.gov/research/taxinformation/sales/frequently-asked-questions-faqs-for-marketplace-facilitators-marketplace-sellers-and-remote-retailers.html
Illinois also has a different definition of sales tax compared to most states ... it is a tax on the retailer, not on the purchaser, and the retailer is allowed (or expected) to collect it from the purchaser. As a marketplace facilitator, eBay is required to collect use tax, not sales tax AKA retailer occupation tax (ROT). Purchasers in Illinois owe use tax on any transaction where they have not already paid either sales/ROT or use tax.
april1007
OP9 months agoThank You!
stainlessenginecovers
·9 months ago@lacemaker3 @april1007 that (Illinois is different) is NOT correct. The ROT is NO different than most any others states.
It says it right there in the 1st Sentence of the ROT as shown:
A tax imposed on retailers selling items to a buyer IN Illinois.
IN is the keyword; and since ebay already collects those taxes, the Retailer (Seller) does NOT have to 'pay again'.
Same as any other state....except Ebay does it for you.
A seller may have to 'report' those sales (ONLY to those IN Illinois) but then you can 'exempt' that amount since ebay pays it.
soh.maryl
·9 months agoAre you talking about state sales tax that your buyers pay to you and that eBay then forwards to the state?
Or are you asking about state income tax for the state of illinois? If you are a resident of the state, aren't all of your sales subject to income tax?
luckythewinner
·9 months agoDid you set up your own tax tables instead of letting eBay take care of it for you?
slippinjimmy
·9 months agoNot sure I understand, if you are talking about eBay sales YOU don't pay any Sales Tax, you probably (if a registered reseller with the Illinois authorities) have to report your sales within IL but eBay collects and remits the sales tax on your behalf.
slippinjimmy
·9 months agoFollow up.....
To find the total sales within IL you can go here: https://www.ebay.com/sh/fin/report
Download a Transaction report, open in excel or other spread sheet program and sort by State.
stainlessenginecovers
·9 months agoIf you are talking 'sales tax'- not easily but you should NOT have to pay ANY sales tax to the state for any sales on ebay since they already do it.
If you are talking 'state income tax' then you can go to the payments tab and click reports off to the left, then change dates to 'last year' and you will see the 'gross sales $ collected' and the 'returns' and the 'fees' paid for the year.
april1007
OP9 months agoMy mom used to handle all my books for me before she passed so I'm a bit lost. From what I understood they collect tax based on where the buyer is in IL but I have to submit the difference if more is owed for my county.
slippinjimmy
·9 months agoThat is not correct, Sales Tax is ALWAYS charged based on the destination location, where you are located is irrelevant to the calculation. In fact on eBay it doesn't matter which State or even which Country the seller is located.
lacemaker3
·9 months ago@slippinjimmy: No, not always.
AFAIK, Illinois is the only state in the US that uses origin-based sales tax (or ROT, retailer occupation tax), rather than destination-based.
When Illinois passed their Marketplace Facilitator use tax law, it got complicated. The MF use tax is destination-based, but for marketplace sellers in Illinois ... well, it's complicated. They MAY be covered by eBay's use tax collection, or they MAY have other requirements owed for state or local governments.
https://tax.illinois.gov/research/taxinformation/sales/frequently-asked-questions-faqs-for-marketplace-facilitators-marketplace-sellers-and-remote-retailers.html
caldreamer
·9 months agoVery sorry about your mom's passing. Is this EBAY account in your mother's name (her social security#)? If yes, you will have a problem with the IRS because deceased people cannot have income. EBAY reports income to IRS based on social security# (shown on EBAY account). I strongly suggest you consult a tax accountant.
You should not have to pay any State of Illinois "sales tax" (EBAY collects that and remits that to your state). Sales Tax is paid by customer and based on "their shipping address" and not your address.
You will not have to pay any "sales tax" but you are required to pay "Federal income tax" which is based on your "gross income". EBAY has "easy to read" 1-page report that shows YTD totals for (Orders, EBAY fees, refunds, shipping expense). Go to PAYMENTS, REPORTS (select LAST YEAR and 2025). You need to keep track of your "miscellaneous expense".
ORDERS (this is the "gross income" amount you report to IRS)
-EBAY fees
-Refunds
-Shipping expense
-Misc. expense (packing supplies, office supplies, mileage, etc)
NET TAXABLE INCOME
IRS requires that you report "gross income" to IRS. When you file taxes as a business you can deduct all your expenses (shown above). You only pay Federal income tax on "net taxable amount" AFTER you deduct all expenses.
shire123
·9 months agoYou forgot to add cost of goods sold (COGS) from your list of deductions from gross income.
ryry-jj
·9 months agoNo, I don't think that is correct...eBay collects and forwards all the necessary tax owed and collected. You just report you total sales, less all costs on your state's income tax to see if you owe any additional "income tax", not "sales tax"