State Tax Collection

[ladykathy100]

I having trouble with both PayPal and eBay. Last year, sales tax for California was collected. According to eBay, PayPal collects and pays the state tax. I emailed PayPal and they wrote this response:

Dear Kathleen Yarnal,

Thank you for contacting PayPal.

Paypal does not collect taxes from transactions. Ebay collects and pays the sales taxes for various states. If you need to access the reports of the breakdowns. Where do I find these reports? Who collects the state taxes? eBay or PayPal? Which has the tax records? How do I get them? Lady K

[glorybells · Accepted solution]

eBay collects the sales tax, based on the location of the buyer.  After the Supreme Court ruling from a couple of years ago, 39 states now require eBay to collect tax for items coming into those states.  The money very briefly stops in the sellers PayPal account, before eBay remits it to the state.

 I don’t know how you would get any records concerning those taxes - I’m also not clear on why you would need that.