Sales tax
I noticed eBay is no longer charging sales tax when a customer orders an item. Not even in my own state? I asked eBay about it, and one customer service rep said it's a software glitch. When nothing was done, I contacted them again and was told not to worry about it. They will take responsibility. Meanwhile my customers are not paying sales tax. Anyone else notice this?
32 comments
1786davycrockett
·3 years ago@stickerxchange
My 9/22/23 sales are showing appropriate sales tax being charged to the buyers; so I'm not sure what "software glitch" might be aimed at selective eBay accounts.
redmodelt
·3 years agoI think some are not reading. If the OP lives in a tax state and buyers are from that state or any other that collect sales tax then eBay would be collecting, they aren't. This has nothing to do with the states that don't like Oregon or other non sales tax states.
Yes, sounds like another glitch.
Have a great day.
If you wish no more comments, used the drop down and request the monitor to close it.
mam98031
·3 years agoEverything I've posted has to do with just that. I think most posters are on target. A couple strayed off though, you are right.
soh.maryl
·3 years agoYou do know, as an experienced seller, that the state sales tax charged to the buyer on his purchase is calculated based upon the delivery address of the buyer, right?
lacemaker3
·3 years ago@stickerxchange
eBay determines if an item is taxable or not from the category, and the sales tax law in the buyer's state. As far as I can see, none of the listings in your category are charging sales tax. I checked with addresses in several states that charge sales tax.
https://www.ebay.com/b/Collectible-Vehicle-Decals-Stickers/14029/bn_3046779
@devon@ebay @elizabeth@ebay
Could you check to see if it is correct, that vehicle decals and stickers are not taxable items in most states, or is this a programming mistake?
stickerxchange
OP3 years agoIt was mentioned by one of the customer service reps that it could be the reason. However Iv'e been selling for almost 20 years and this only started beginning of the year. They mentioned it might be a policy change?
soh.maryl
·3 years ago"A policy change"? Charging state sales tax for the applicable sales, that is, states that have a state sales tax, is a LAW, and is not optional. See how well informed CS reps are!
mam98031
·3 years agoIt may be when you noticed it, but that isn't when it started.
There are currently 46 jurisdictions where eBay is obligated to collect and remit to the respective authorities for marketplace transactions.
Marketplace Facilitator Law by State (IST)
Internet Sales Tax in the US
If you sell to buyers in the US, some jurisdictions may require you to collect applicable Internet Sales Tax on your transactions. As of July 1, 2021 a total of 46 jurisdictions require the collection of sales tax. In such cases, eBay collects and remits Internet Sales Tax on your behalf.
Learn more about Internet Sales Tax, on our Help pages, or from your tax advisor.
Starting in November 2019, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:
Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action. These changes do not apply to sellers in managed payments.
https://www.ebay.com/sellercenter/resources/tax-information
stickerxchange
OP3 years agoThanks I know all of what you conveyed to me. I've been doing this a long time. For whatever reason StickerXchange has stopped charging my customer's sales tax. Has to be a software glitch.
mam98031
·3 years agoStickerxchange is your Ebay ID. In other words your Seller ID. Seller do NOT charge sales tax to their buyers and haven't for a few years which is what I've previously explained.
ONLY Ebay charges buyers Sales Tax. NO SELLER can charge it on their own.
So I'm very confused by you continuing to say that StickerXchange has stopped charging the sales tax to your customers. YOU haven't been able to do that for a few years now.
stickerxchange
OP3 years agoWhat I was really wondering is anyone else experiencing no sales tax at all on customers orders. None at all? It has to be a software glitch.
mam98031
·3 years agoYes, we all do when the buyer is having us ship into a state that has NO sales tax.
devon@ebay
Hey @lacemaker3! Let us ask and see what insight we can find out on this and we will let you know!
lacemaker3
·3 years agoHi @devon@ebay ,
It's been almost two weeks ... what have you been able to find out about this?
The OP replied to my post with some additional information here, saying that eBay only stopped charging sales tax for this category this year:
devon@ebay
Hey @lacemaker3! I apologize for the delay but I am still waiting to hear back on this. I will send this over again this morning to see if I hear anything back!
ckimodog
·3 years ago@stickerxchange
The following states do not charge sales tax:
Alaska, Delaware, Montana, New Hampshire, and Oregon.
If you buyer was from any one of those states, that's why.
Happy Selling
stickerxchange
OP3 years agoThank you all for your response. However, I think I'm just going to do what eBay recommended. Don't worry about it. Cheers
mam98031
·3 years agoPersonally I think that is very bad advice. You need to understand it. It is important as a seller than you understand how MFLs [Marketplace Facilitator Laws] work. The old head in the sand method is usually not a good one.
stickerxchange
OP3 years agoI'm well versed on the MFL's as I said I've been doing this a long time. They said there is nothing I can do. If there is a problem, they are responsible. I've already spent way too much time on this. Calling them, getting through and now community Chat. Believe me head is not in sand. No sales tax is being charged. What do you suggest I do about it? Cheers
mam98031
·3 years agoNothing. Not your responsibility.
When you file with your state and if they require you to report how much sales tax is owed, you can do that. Then deduct the entire amount that Ebay should have paid so you net a zero. No money owed by you for your Ebay sales.
Keep in mind I said IF your state requires you to report this as not all states do.
stickerxchange
OP3 years agoThank you for your input. Cheers
ckimodog
·3 years ago@stickerxchange
Okie dokie! Cheers to you as well!!
mam98031
·3 years ago@stickerxchange
You may be viewing things incorrectly as Ebay is required by LAW to collect and remit sales tax according to the various state laws when buyers make a purchase. It is the buyer that has to pay the sales tax and the rate is based on where the BUYER is having the item shipped.
Sales tax charged to the buyer does show up on the Order for each item sold.
stickerxchange
OP3 years agoit used to? And tax is being charged on my other store PosterXchange. It shows the tax and states {ebay collected)
mam98031
·3 years agoSales tax has NEVER been based on where the Seller was shipping from.
Now back when we collected and remitted our own sales taxes [pre 2019/2020], then if we had a buyer that had their item shipped an address WITHIN the seller shipped from, we charged that buyer Sales Tax. So back then we collected and remitted sales tax on sales that happened within our own states if sales tax was due.
Now Ebay does it.
When I file with our States Dept of Revenue for my income for whatever period. I still have to declare how much I sold inside of the state I'm in. Then I take the full deduction for it because Ebay collected and remitted the sales tax. The net result is I don't owe anything for sales tax to my state.
Rules may be different in how this gets reported, if it gets reported. But sellers can NOT collect sales tax from buyers at all on Ebay or any other site that is similar to Ebay where they process the money.
And YES your report would show that Ebay collected the tax. Ebay is also legally responsible to remit it to the appropriate state.
toomuchstuffagain35
·3 years agoPerhaps your buyers were in states that don't charge ST?
stickerxchange
OP3 years agoThank you for responding. However no sales tax is being charged everywhere including my home state of California which I report to quarterly.
mam98031
·3 years agoSales tax is NOT driven by where you are located, it never has been.
Sales tax is based on where the product is being shipped to. So if the buyer has the item shipped to Washington, then the buyer will pay Washington sales tax. If they have it ship to Oregon, there will be no sales tax because Oregon doesn't have sales tax.
monroe67
·3 years agomam98031 is correct, in that eBay is required to calculate, collect, and remit sales taxes on purchases that occur completely in, on, and through eBay.
IF there is some sort of glitch in eBay's sales tax system today, that is not of concern to most eBay sellers. eBay will be required to "make it right" to the affected state(s), somehow, for eBay sales on which sales tax was not charged but should have been.
Your recent sales, according to this username, were all like $4.99 or $5.99, with $1.00 shipping. Even to parts of Washington State, the sales tax would have been around $0.60, 0.61, 0.62 cents. AND eBay may also be required to pay some sort of penalty to the appropriate state's taxing authority.
I think eBay can handle this "mistake" (if, indeed, that's what's happened), even to the tune of $1.50 or $1.60. That is literally pocket change. You can still get a hot dog and soda at Costco for $1.50 plus tax. So, somebody in eBay's (presumed) Sales Taxes Department doesn't get a hot dog and Pepsi for lunch one day. eBay will survive and the state of Washington will get its proper sales taxes.
HOWEVER. You say you report the quarterly sales taxes that you collect for the state of California.
That should be only on sales that do not occur in, on, through, or with eBay.
If you are keeping track of and reporting (and paying) sales taxes to Sacramento on your sales that occur completely within eBay, you are doing eBay's job, duplicating their efforts. AND the state of California could be receiving double sales-taxation on your sales.
Don't worry.
mam98031
·3 years ago@monroe67
" AND eBay may also be required to pay some sort of penalty to the appropriate state's taxing authority. " That would be a stretch and very unlikely. Ebay does not pay each state at the moment that the tax is collected from the buyer. I can't even imagine what that would look like in the number of transactions a state would be receiving hourly from all the sites that fall under these laws, like ETsy, Amazon ect.
Ebay would be remitting payment to the appropriate states, likely on a monthly basis. And if they made a mistake, it is likely they would have it fixed before it came time to remit the taxes to the appropriate states.
stickerxchange
OP3 years agoThank you. I'm careful not to pay for what eBay has collected. StickerXchange is not my only source of income. I have PosterXchange, no problem with sales tax being collected. I also do etsy, no problem with sales tax and Square at Trade shows. I only pay for what has been directly collected by me. StickerXchange is an anomaly. Thanks again.
mam98031
·3 years ago......... I made a mistake.