eBay

Anonymous · ‎10-09-2020

Hi! I'm still new to this and I've been reading forums, but I feel like my question has yet to be answered.

I sold an item and sales tax was charged, however, none of it went to me. It all went to Paypal/eBay. I read that since they collect the tax, I don't need to do anything on my end, but here's the thing...

Since eBay is taking the tax, can I include that in my taxes, and then I can get a tax refund? I don't see the point of taxing my items (I just sell random plushies I don't need) if I won't be seeing that money anyway.

fab_finds4u · ‎10-09-2020

You didn't get the tax and keep the tax so why would you think you need to get a refund? You didn't pay the tax or handle the tax money. It was paid by the buyer and PayPal dispersed the tax money to eBay. The tax was removed from your payment. You only got the money for the item cost and shipping with a record of the total the buyer paid, which showed they were charged sales tax for their item.

comics-scifi-collectibles · ‎10-09-2020

@Anonymous Sales tax is charged by the state the item is delivered to. Ebay collects and remits it as required by law.

On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. The decision allows states to tax remote sales. The sales tax is charged by the state the item is delivered to for all internet / remote purchases.

Ebay's list of states that currently have facilitator tax laws:
https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771

The market place facilitator tax law explained:
https://blog.taxjar.com/marketplace-facilitator-explained/

Some states charge sales tax on shipping:

https://blog.taxjar.com/sales-tax-and-shipping/

Comics-scifi_collectibles Is a Volunteer Community Mentor.
I have been a seller since 2003