What happens to the taxes that ebay collects from the buyer
i am new to selling here and wonder what happens to the taxes ebay collects from the buyer, i have a antique store business and am trying to figure out if i have to file them and pay them which i do monthly on my brick and mortar store sales or does ebay pay them to the state and i just have to claim the income. its crazy they charge me 13% on taxes and shipping when the buyer pays them and not to me, i have to spend the postage on postage through ebay so they get that money anyway.......any help would be appreciated...
13 comments
soh.maryl
·1 year ago". . . I have to spend the postage on postage through eBay so they get that money anyway". Have to ask: You do realize there is no connection between the postage that the buyer pays you and you then use to buy the shipping label and the state sales tax that eBay is required by law to collect and remit to the state of the buyer's shipping address, right? I ask because that statement sounds like you think they are related. Maybe a fast spin through the information about how selling on eBay works would be a good idea.
PS: Nut bowls and salt cellars are two entirely different items.
iamalwaysright
·1 year agoWhat happens to the taxes that ebay collects from the buyer
soh.maryl
·1 year agoAs others have mentioned, eBay is required BY LAW to remit the state sales taxes to the appropriate state.
Think about this: There are about 45 states in the US that have state sales taxes; however, within those states, there can be multiple taxing agencies like counties or cities etc and eBay has to keep up to date on those. Do you want to have to do that yourself or is it worth the percentage you pay to have it done for you by eBay?
snoopwiz
·1 year agoPossibly discrete caviar, cocaine and hooker parties for chosen head office executives in San Jose?
inhawaii
·1 year agoYou beat me to it. 😉
chevymontecarlo88
·1 year agoMaybe it is because of what someone posted in an earlier thread today. Someone was paying for those treats. 😀
"OK, I'll 'fess up to it, I landed a job at eBay in 2004 in San Jose (doing what shall remain a mystery), the break room was always loaded with fresh apples, peaches, plums, and other fruit, there was fresh Starbucks flowing like a river and the fridge filled with V8 juice and bottles of Calistoga water. eBay's motto was "people are basically good". Ah the air was soooo fresh back then."
Just kidding or course. Everyone knows PL (promoted listings) funded the break room and other privileges to those who worked at corporate. 😀
vintagesistersantiques
OP1 year agothe highlighted is my income which i of course would claim.....i was wondering if i have to file the taxes that are collected on my sales here on ebay, (I file monthly on the sales in my antique store) i have now found that the answer is no ebay does it... thank you
monroe67
·1 year ago" . . . [I] have a antique store business and am trying to figure out if i have to file them [sales taxes] and pay them which i do monthly on my brick and mortar store sales or does ebay pay them to the state and i just have to claim the income."
As others have posted, eBay sends collected sales taxes to the appropriate states.
Re that highlighted phrase: What income are you referring to?
Sales taxes that eBay collects on your behalf is not considered income to you, an eBay seller.
If you receive a Form 1099-K* from eBay, reporting, to the IRS, your income from eBay sales, the amount of sales taxes is not included.
*Regardless of the dollar threshold at which eBay is required to issue Form 1099-K to you, sales taxes are not included.
That threshold is currently $2,500 for 2025, but yesterday's Big Beautiful Bill contained a provision that would increase the threshold to $20,000 and 200 transactions. It is not yet law; may never be.
johnrj1226
·1 year agoeBay collects the sales tax from the buyer and in turn the remit these to proper taxing authority 4 times every with in the state (i.e county state - some counties have more than one - e.g. Fulton county, GA, sales taxes vary by county within the state and can vary within the calendar year.
Glad eBay has to remit the sales taxes vs the eBay seller - it drove our bookkeeper crazy every 3 months.
monica-sells
·1 year agoIn my state I have a B&M as well as my online ebay store.
When I file my quarterly returns for Sales Tax, I enter my gross sales (online and B&M), and the ebay portion of the gross sales are filed as exempt from collection by my company, since ebay collects those funds as an aggregator and remits that portion of my sales to the appropriate authorities.
hartungcards
·1 year agoeBay remits all sales taxes on your behalf. Be thankful they only charge you 13% of the total to perform this.
pikabo-icu
·1 year ago@vintagesistersantiques
They remit them to the state for which they collected them.
The tiny amount we pay in fees for taxes is well invested since they do all the accounting etc..
vintagesistersantiques
OP1 year agothank you !