cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 

Sales tax not being collected properly

I am in the State of Ohio and eBay for the last few months is not collecting the proper sales tax.  About mid year they stopped collecting the sales tax on the shipping and handling charge even though I had the tax table checked to collect the tax on the S&H.  This causes me to be responsible for this tax amount and not the buyer.  Has anyone else had this problem?  Does tech support even know about this?

Message 1 of 13
latest reply
12 REPLIES 12

Re: Sales tax not being collected properly

IIRC, there was a Powerseller here who reported that issue earlier this year in detail, and eBay was made aware of it.

No resolution of workarounds I'm aware of.

All I can suggest would be to change your tax table entry for Ohio: uncheck the "also tax S&h" box", save it, go back and tick the box again, save it, and maybe that will jog something loose (that assumes it's a problem with a database flag not being set, and not a problem with the tax calculation code being broken)

I'd think if it were a widespread problem we would see more reports of it here.
Message 2 of 13
latest reply

Re: Sales tax not being collected properly

Addendum:

I recalled incorrectly. The other seller's issue was that eBay was charging proper sales tax on the S&H portion of the transaction, but not showing it on the packing slip. That glitch is still unfixed.

Your issue is a new one, and no idea if others experiencing it.

tyler@ebay
Message 3 of 13
latest reply

Re: Sales tax not being collected properly

@jacbarcollectibles, which listings have this issue?

 

This listing says the sales tax of 6.75% is applied to both the purchase price plus shipping, and it appears to be calculating the sales tax  correctly:

 

($32.99 + $10.40) * 0.675 = $2.928825 (round up to $2.93)

 

image.png

 

 

 

Message 4 of 13
latest reply

Re: Sales tax not being collected properly

Every sale that I have had that shipped to an Ohio address I only receive the sales tax on the item amount.  I do not receive any sales tax money for the shipping and handling amount.  When I have a sale within Ohio I manually calculate the sales tax that should be charged and it is always missing the shipping and handling sales tax.

Message 5 of 13
latest reply

Re: Sales tax not being collected properly

I will give that a try and see what happens.

Message 6 of 13
latest reply

Re: Sales tax not being collected properly

@jacbarcollectibles

 

Can you give an example of a recent item number where the tax wasn't calculated correctly?

Message 7 of 13
latest reply

Re: Sales tax not being collected properly

Item number 163309987840 that just sold to an Ohio address.

Message 8 of 13
latest reply

Re: Sales tax not being collected properly

OK, thanks.

 

I forgot that I can't go to the checkout page for a closed listing, so I can't see what checkout would charge for that page. But, I can see that it is showing the same notice about the "Tax applies to subtotal + S&H for these states only" which was on the active listing I checked above.

 

So it doesn't look as though it was an error in setting up the listing. Might have been a glitch in the database as @berserkerplanet suggested. But the glitch doesn't appear to be affecting the listing I checked out earlier.

 

image.png

 

 

The tax for that listing should have been:

 

($17.75 + $7.25) * 0.0675 = $1.6875 (round up to $1.69)

 

So assuming your buyer used a US credit card/PayPal account to pay, your payment received should have been:

 

($17.75 + $7.25+ $1.69) * (1 - 0.029) - $0.30 = $25.05281 (round down to $25.05)

 

What did you receive for it?

Message 9 of 13
latest reply

Re: Sales tax not being collected properly

Total buyer paid for the item was $26.20 of which $1.20 was the sales tax charged.  The remaining 49 cents of the sales tax will have to come out of my pocket.

Message 10 of 13
latest reply

Re: Sales tax not being collected properly

That works out to

 

$17.75 + $7.25+ $1.20 = $26.20

 

as you say. Sales tax only calculated on the purchase price, not the shipping & handling.

 

By any chance, had you already tried the steps that @berserkerplanet suggested when I posted that the active listing was showing the correct sales tax applied? Maybe that work around fixed the issue.

 

I am reluctant to mess with one of your listings by actually making a purchase to see if the sales tax changes when the payment is made. That seems unlikely, though.

Message 11 of 13
latest reply

Re: Sales tax not being collected properly

brian@ebay
eBay Staff (Alumni)

@jacbarcollectibles wrote:

I am in the State of Ohio and eBay for the last few months is not collecting the proper sales tax.  About mid year they stopped collecting the sales tax on the shipping and handling charge even though I had the tax table checked to collect the tax on the S&H.  This causes me to be responsible for this tax amount and not the buyer.  Has anyone else had this problem?  Does tech support even know about this?


Hi @jacbarcollectibles, this is a known issue that our techs are working to resolve. I'll report the item you provided in this thread to the techs as an example. Thanks!

Brian,
Community Team
Message 12 of 13
latest reply

Re: Sales tax not being collected properly

I just tried it but will not know if it worked until I get a sale within Ohio.

Message 13 of 13
latest reply