mam98031 • Volunteer Community Member • Buyer/Seller since 1999
Best regards,
@mr_lincoln wrote:
payments_team@ebay wrote:
@valueaddedresource wrote:
@keziak wrote:Those 2 paragraphs seem to contradict each other. Does the total include the sales tax or not?
@keziak - to me it sounds like eBay will include seller collected tax in the 1099K (because it was paid to you, the seller), but will not include Marketplace Facilitator tax (because it was paid to eBay to remit to the state, not to the seller).
Maybe payments_team@ebay can clarify this for us.
@valueaddedresource we don't have an answer to this specific question so we've requested more information. When we know more then we will share it here.
payments_team@ebay Seriously? 1099K either DO or they DO NOT include the sales tax eBay collected and charged Sellers their fees on ... PayPal had no issues implementing Sales tax in their process (1099K Gross total AND specific column in their CSV database) when it started to happen ... someone from eBay should call them and ask how to do it ...
Managed Payments has been around for what, over 2 years???
I understand why they need to check and I think that is a good thing. The Policy page currently reads that they do not include it in the 1099K. But now they have changed the detailed reports because we need this information. So IF and I stress IF they are in the process of changing this, it is likely they haven't updated the policy page yet. We just need to wait to find out.
As I've tried but clearly failed to explain this to @valueaddedresource either way we are fine. We have the information now with the change in the detailed reports. So if Ebay continues with the format they have in the past on the 1099K, we have the detailed information to use if it ever becomes an issue with IRS. Something that is likely very easily resolved. I don't think it is as huge of a deal as some are trying to make it out to be. But that is just my point of view.
@mam98031 wrote:
@mr_lincoln wrote:
payments_team@ebay wrote:
@valueaddedresource wrote:
@keziak wrote:Those 2 paragraphs seem to contradict each other. Does the total include the sales tax or not?
@keziak - to me it sounds like eBay will include seller collected tax in the 1099K (because it was paid to you, the seller), but will not include Marketplace Facilitator tax (because it was paid to eBay to remit to the state, not to the seller).
Maybe payments_team@ebay can clarify this for us.
@valueaddedresource we don't have an answer to this specific question so we've requested more information. When we know more then we will share it here.
payments_team@ebay Seriously? 1099K either DO or they DO NOT include the sales tax eBay collected and charged Sellers their fees on ... PayPal had no issues implementing Sales tax in their process (1099K Gross total AND specific column in their CSV database) when it started to happen ... someone from eBay should call them and ask how to do it ...
Managed Payments has been around for what, over 2 years???
I understand why they need to check and I think that is a good thing. The Policy page currently reads that they do not include it in the 1099K. But now they have changed the detailed reports because we need this information. So IF and I stress IF they are in the process of changing this, it is likely they haven't updated the policy page yet. We just need to wait to find out.
As I've tried but clearly failed to explain this to @valueaddedresource either way we are fine. We have the information now with the change in the detailed reports. So if Ebay continues with the format they have in the past on the 1099K, we have the detailed information to use if it ever becomes an issue with IRS. Something that is likely very easily resolved. I don't think it is as huge of a deal as some are trying to make it out to be. But that is just my point of view.
They knew 2 years ago they would be issuing 1099Ks to Sellers. They knew 2 years ago they were going to have to supply comprehensive databases ... they knew last year they needed to include Sales tax in BOTH the 1099K Gross total AND the databases Sellers use for tax purposes. They had for MANY YEARS the perfect example right in front of them, PayPal for the database portion. They STILL can't give Sellers a straight answer on this topic ... if they could they would ...
This is the ongoing lack of transparency eBay has shown with MP throughout its existence ... there is nothing okay about this says eBay's Seller Partner number 22,193,004 ... the other millions I suspect feel the same way ...
@valueaddedresource wrote:
@mam98031 wrote:
@mr_lincoln wrote:
payments_team@ebay wrote:
@valueaddedresource wrote:
@keziak wrote:Those 2 paragraphs seem to contradict each other. Does the total include the sales tax or not?
@keziak - to me it sounds like eBay will include seller collected tax in the 1099K (because it was paid to you, the seller), but will not include Marketplace Facilitator tax (because it was paid to eBay to remit to the state, not to the seller).
Maybe payments_team@ebay can clarify this for us.
@valueaddedresource we don't have an answer to this specific question so we've requested more information. When we know more then we will share it here.
payments_team@ebay Seriously? 1099K either DO or they DO NOT include the sales tax eBay collected and charged Sellers their fees on ... PayPal had no issues implementing Sales tax in their process (1099K Gross total AND specific column in their CSV database) when it started to happen ... someone from eBay should call them and ask how to do it ...
Managed Payments has been around for what, over 2 years???
I understand why they need to check and I think that is a good thing. The Policy page currently reads that they do not include it in the 1099K. But now they have changed the detailed reports because we need this information. So IF and I stress IF they are in the process of changing this, it is likely they haven't updated the policy page yet. We just need to wait to find out.
As I've tried but clearly failed to explain this to @valueaddedresource either way we are fine. We have the information now with the change in the detailed reports. So if Ebay continues with the format they have in the past on the 1099K, we have the detailed information to use if it ever becomes an issue with IRS. Something that is likely very easily resolved. I don't think it is as huge of a deal as some are trying to make it out to be. But that is just my point of view.
@mam98031 I understand just fine that the eBay collected tax is now included in the transaction reports and that sellers can use that information when filing their taxes.
The point of contention is whether or not the 1099K format eBay has used in the past (that is explicitly spelled out on that help page) is accurate and correct or if it needs to be changed.
The answer to that question seems to rest on whether eBay collected tax is paid to the seller and then deducted back out to eBay, or whether the eBay collected tax goes directly from buyer to eBay to the state. That has nothing to do with informational transaction reports and everything to do with the actual flow and processing of money.
You seem to believe that eBay collected tax in Managed Payments is paid to the seller and then sent to eBay, which means eBay's 1099K format and policies need changing.
I have provided some publicly available information from both eBay and Adyen that would seem to indicate there is at least a possibility that eBay collected tax goes directly from the buyer to eBay to the state without being paid to or received by the seller at any point, which would appear to make the current 1099K format and policies correct and not in need of being changed.
I agree with @mr_lincoln that it should not be difficult for payments_team@ebay to confirm which one of those scenarios is true.
@valueaddedresource Yes, that's what I would expect ... either it IS or it ISN'T ... tell us which it is. My "guess" is that for last year is ISN'T because their Aug & Sept CSV files did NOT have ANY sales tax on them ... I will be doing Oct-Nov-Dec soon and expect to see the same. I will also be able to compare those totals with the 1099K I receive ... although their boiler plate Taxes tab on Seller Hub says I didn't sell enough which @mam98031 advised is not right and I would tend to agree there. So if the 1099K matches my totals from the CSV files then NO Sales tax was accounted for on the 2020 1099Ks ... but again, eBay should simply be able to TELL US instead of US telling them once we get all the data from our accounts ...
You are correct. In previous years it wasn't included in the 1099K numbers which is why the policy page states what it does. Which was correct in how Ebay released these forms.
Recently [or it is being rolled out] the detailed transaction payment report was revised and we can now see the Ebay sales tax amounts. This was the result of me pleading and working with Ebay to get that info on the report as it is info we should have.
As I've stated multiple times I do NOT know if this also means Ebay will change how they do the 1099Ks. IDK if they will be updating the policy page. I've heard nothing on this and it is like why the payment team wanted to verify what is happening before answering your earlier question. I saw their response as a responsible response to your question.
It was a good question by you and they wanted to make sure something wasn't about to change that they didn't know about. We know Ebay isn't that good about communicating and sometimes even with their own staff. So for me, I liked their response and I look forward to what they find out.
@fern*wood wrote:It seems awfully late in the game to just now look into this. It bothers me greatly that the payment team doesn't know, and I guess didn't even wonder, until we asked. Also, based on the message about tax forms posted earlier, I wonder what they routinely tell sellers that call them with questions.
I can only tell you that it actually took them literally months to make these changes to the Detailed transaction report.
@mr_lincoln it may be a little trickier than that.
Since eBay updated the transaction reports to include eBay collected sales tax, that seems to be retroactive back to our MP start date. My accounting department requested that I pull a report from our start date to end of year so they can do their thing and it does now show that column with entries back to our enrollment date.
Like I said, I think that is a good thing, regardless of what the answer ends up being for the 1099K. 😊 Giving sellers more data vs less is pretty much always the right call in my opinion.
However, I don't think it necessarily has to be true that just because it is now in the transaction report, that means it absolutely must be on the 1099K too. It's certainly possible it means that, but it's also possible that the transaction report is for our information/records and not necessarily "proof" that the eBay collected tax is paid to sellers and should be included in the 1099K.
In fact, when you look at the report and compare subtotal to Gross Transaction amount, the only Gross Transaction Amounts that appear to include sales tax are the seller collected tax ones.
The transactions with eBay Collected Tax still show no change to the Gross Transaction Amount which would tend to lend some credibility to them not being included in the 1099K.
But yes, I absolutely 100% agree with this! "eBay should simply be able to TELL US instead of US telling them once we get all the data from our accounts"
@mam98031 wrote:
You are correct. In previous years it wasn't included in the 1099K numbers which is why the policy page states what it does. Which was correct in how Ebay released these forms.
Recently [or it is being rolled out] the detailed transaction payment report was revised and we can now see the Ebay sales tax amounts. This was the result of me pleading and working with Ebay to get that info on the report as it is info we should have.
As I've stated multiple times I do NOT know if this also means Ebay will change how they do the 1099Ks. IDK if they will be updating the policy page. I've heard nothing on this and it is like why the payment team wanted to verify what is happening before answering your earlier question. I saw their response as a responsible response to your question.
It was a good question by you and they wanted to make sure something wasn't about to change that they didn't know about. We know Ebay isn't that good about communicating and sometimes even with their own staff. So for me, I liked their response and I look forward to what they find out.
I am sure for 2021 moving forward they will probably get all the planets to line up on this one but I have already confirmed that for Aug & Sept last year they had NO Sales tax info on the CSV files ... when I do Oct-Nov-Dec I will know if they are the same (I suspect they will be) ... so when I get the 1099K I will simply compare it to the total from my 5 CSVs from last year ... it will either match or be off by a number large enough to account for Sales Tax ... BUT, will it be ALL 5 months worth? Who knows ... but it would be so much easier if they would just tell us how they did what and when it started ... SOMEBODY KNOWS ...
The 2020 1099K Gross total is not critical to my tax returns other than do I deduct Sales tax or don't I and how much would that be? eBay is not the only venue that goes on my tax return, its just another set of numbers that are included in the tabulation.
@valueaddedresource wrote:@mr_lincoln it may be a little trickier than that.
Since eBay updated the transaction reports to include eBay collected sales tax, that seems to be retroactive back to our MP start date. My accounting department requested that I pull a report from our start date to end of year so they can do their thing and it does now show that column with entries back to our enrollment date.
Like I said, I think that is a good thing, regardless of what the answer ends up being for the 1099K. 😊 Giving sellers more data vs less is pretty much always the right call in my opinion.
However, I don't think it necessarily has to be true that just because it is now in the transaction report, that means it absolutely must be on the 1099K too. It's certainly possible it means that, but it's also possible that the transaction report is for our information/records and not necessarily "proof" that the eBay collected tax is paid to sellers and should be included in the 1099K.
In fact, when you look at the report and compare subtotal to Gross Transaction amount, the only Gross Transaction Amounts that appear to include sales tax are the seller collected tax ones.
The transactions with eBay Collected Tax still show no change to the Gross Transaction Amount which would tend to lend some credibility to them not being included in the 1099K.
But yes, I absolutely 100% agree with this! "eBay should simply be able to TELL US instead of US telling them once we get all the data from our accounts"
Let me ask you this ... do they include the Sales tax in the Total transaction amount on the retroactive CSV reports? Here's my concern ... if they do then they contributed to falsifying my 3Q20 Quarterly State Tax ID report ... (idiots) ...
@mr_lincoln wrote:
@valueaddedresource wrote:@mr_lincoln it may be a little trickier than that.
Since eBay updated the transaction reports to include eBay collected sales tax, that seems to be retroactive back to our MP start date. My accounting department requested that I pull a report from our start date to end of year so they can do their thing and it does now show that column with entries back to our enrollment date.
Like I said, I think that is a good thing, regardless of what the answer ends up being for the 1099K. 😊 Giving sellers more data vs less is pretty much always the right call in my opinion.
However, I don't think it necessarily has to be true that just because it is now in the transaction report, that means it absolutely must be on the 1099K too. It's certainly possible it means that, but it's also possible that the transaction report is for our information/records and not necessarily "proof" that the eBay collected tax is paid to sellers and should be included in the 1099K.
In fact, when you look at the report and compare subtotal to Gross Transaction amount, the only Gross Transaction Amounts that appear to include sales tax are the seller collected tax ones.
The transactions with eBay Collected Tax still show no change to the Gross Transaction Amount which would tend to lend some credibility to them not being included in the 1099K.
But yes, I absolutely 100% agree with this! "eBay should simply be able to TELL US instead of US telling them once we get all the data from our accounts"
Let me ask you this ... do they include the Sales tax in the Total transaction amount on the retroactive CSV reports? Here's my concern ... if they do then they contributed to falsifying my 3Q20 Quarterly State Tax ID report ... (idiots) ...
@mr_lincoln that screenshot is from the report I pulled yesterday for August - end of year 2020. The column that says eBay Collected Tax extends through that complete report, and shows eBay collected tax amounts and seller collected tax amount going back all the way to the date of our first sale in MP.
The Gross Transaction Amount column appears to include seller collected tax, but not include eBay collected tax going back to August as well.
So just to be clear, as far as I can tell from the newest version of the transaction report, the Gross Transaction Amount column in this report only includes sales tax collected by the seller and that goes back to our start date in Managed Payments.
YES, because that would be the amount staying with the seller.
It doesn't have to be made more difficult than it needs to be. Those experienced with a worksheet program can rearrange and total those columns any way that suits their needs or likes. Some of those columns I don't need, I hide them. I split up a column when needed as well. For example the column that I think is called Net amount. I split that one up because I want the separate totals of shipping, refunds and holds. And I don't find it difficult to do. I had to do the same thing with PP reports. It is just a personal preference. I'm sure there are all kinds of opinions on how someone likes to view the records.
