eBay

acliff · ‎01-20-2021

wondering if my seller income that ebay reports to the IRS includes the sales tax that ebay has already taken out for each sale?

my gut feeling is that only my gross income (not including the sales tax) is what ebay reports to the IRS with the 1099 since the taxes are never in my possession.

i've search ebay's managed payments website and it doesn't seem clear to me so i wanted to make sure.

thanks!

outdatedrecreated · ‎01-20-2021

As far as I know, NOBODY KNOWS. I'd be willing to bet eBay doesn't have a clue either. 😂

superfectabox · ‎01-20-2021

Paypal used to use total monies transferred, including sales tax. Even though you never saw it, it counted towards the 1099.

Under MP, eBay has never officially said anything. There are posts saying it does NOT include the sales tax collected (2nd hand from asking CS, etc) but nothing official that we can point at.

If they mimic Paypal, then it will include it. I'm expecting that it will - Amazon does as well.

valueaddedresource · ‎01-21-2021

@superfectabox wrote:
Paypal used to use total monies transferred, including sales tax. Even though you never saw it, it counted towards the 1099.

Under MP, eBay has never officially said anything. There are posts saying it does NOT include the sales tax collected (2nd hand from asking CS, etc) but nothing official that we can point at.

If they mimic Paypal, then it will include it. I'm expecting that it will - Amazon does as well.

@superfectabox

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

From a technical perspective, with PayPal the full amount including Marketplace Facilitator tax was technically in your PayPal account when they processed the payment and then transferred to eBay. It may be a split second, and not something a seller can actually physically "see", but that is how the money is processed/moved around.

eBay's help page linked above seems to be indicating that in Managed Payments, Marketplace Facilitator tax money really is not paid to the seller and is not included in your gross amount.

I know eBay help pages should be taken with a huge grain of salt, but based on the wording in that screenshot it sounds to me like seller collected tax will be included, but Marketplace facilitator tax will not.

Can anyone who has been in MP long enough to get a 1099 confirm that?