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Updates to Ebay User Agreement regarding Sales Tax Collection - Please explain

Got the email today regarding changes to the User Agreement.  Why is information on the changes included in the email rather than a weird hint at the bottom that it is about sales tax collection.   This is the only thing I can find in the agreement regarding taxes. 

 

"In any jurisdiction where eBay has an obligation to collect sales taxes on sales you make using eBay Services, we may collect such sales taxes from you via the payment method on file under the terms of the Billing Agreement or via any other means available to us."

 

This is super confusing. There is no mention of current policy in which Ebay collects taxes and submits to states where required. Does this mean that Ebay will no longer be collecting sales tax and that I will be charged the tax on all of my sales?

Mary
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Updates to Ebay User Agreement regarding Sales Tax Collection - Please explain

brian@ebay Hi Brian, this came up the other day in another thread.  The wording is VERY confusing.

 

Is this addressing sales tax that a seller collects from a buyer that eBay may decide to subsequently take from the seller?

 

Or is this preparing for the possibility that some states may require eBay to charge SELLERS a sales tax on the FEES they pay to eBay?   If so, the writer needs to have some "coaching" on effective writing techniques for business communication.

 

Member of the Grumpy Old Man crew
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Updates to Ebay User Agreement regarding Sales Tax Collection - Please explain

The whole Fall Seller Update thing is a total fiasco - incomprehensible garble of mish-mashes, no clear structure, impossible to find important information about what's really going on. Is it done on purpose so sellers won't complain about bad changes???

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Updates to Ebay User Agreement regarding Sales Tax Collection - Please explain

While I too think it can be worded better, it looks like it is geared to buyers, NOT sellers.  Ebay does NOT collect sales tax from the sellers on a transaction.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
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Updates to Ebay User Agreement regarding Sales Tax Collection - Please explain


@yem_crystals wrote:

"In any jurisdiction where eBay has an obligation to collect sales taxes on sales you make using eBay Services, we may collect such sales taxes from you via the payment method on file under the terms of the Billing Agreement or via any other means available to us."


I am not aware of any jurisdiction that requires eBay to collect sales taxes from the seller rather than the buyer. 

 

I suspect this a CYA clause just in case some state passes a law requiring eBay to do this. 

 

Or perhaps it is aimed at the sleazy sellers who charge a sales tax when they are not supposed to, and pocket it instead of remitting it to the state? 

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Updates to Ebay User Agreement regarding Sales Tax Collection - Please explain

@yem_crystals 

 

Post #4 in this thread:

 

https://community.ebay.com/t5/Marketplace-Updates/User-agreement-forced-tax-collection/m-p/30199873#...

 

gives an excellent explanation about the text in the User Agreement.

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Updates to Ebay User Agreement regarding Sales Tax Collection - Please explain

Sellers' tax responsibilities

You are responsible for paying all fees and taxes associated with using eBay as an eBay seller. For more information on eBay's tax policy and your obligations, see our tax policy and user agreement.

Your tax-related responsibilities may include:

  • Paying sales tax on eBay sales
  • Paying income tax on eBay sales
  • Informing overseas buyers about import charges

The supreme court has ruled  that South Carolina in June 2018, which removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on retailers. Regardless of where you're physically located, if you do business in certain states, those states may require you to collect applicable taxes on your transactions. 

For more information on these new tax requirements, we recommend that you consult with your tax person. If you do not have a tax person, you may want to reach out to taxjar

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