@slippinjimmy wrote:
eBay reports on 1099's what they are required to by the IRS, that will be exactly the same as PayPal. That would be the gross amount of all funds processed.
One difference as I understand it (which might not be correct
PayPal includes eBay collected Sales Tax
MP does not include eBay collected Sales tax (but does include Seller collected Sales Tax)
@slippinjimmy @tomtrue2 this is correct. The Payments team has confirmed for the eBay issued 1099-K " Seller collected sales tax will be included on the 1099-K form. eBay collected sales tax will not be included on the 1099-K form." https://community.ebay.com/t5/Selling/1099-form/m-p/31553585/highlight/true#M1692282
There are differing opinions about whether eBay is right in how they are handling this. I suspect the technicality here may come down to how money flows in Managed Payments and whether eBay collected tax is paid to the seller then deducted back out to eBay *or* whether the eBay collected tax goes from the buyer to eBay to the state separately without ever being paid to or received by the seller. That is just my opinion, based on some information I have seen both from eBay and Adyen, and should not be taken as professional tax advice.
Either way, I would recommend that any seller should take their 1099-K, along with the statement from eBay about what is and is not included in the figure they send to IRS, and all applicable documents to a qualified tax professional for advice on how to proceed for their specific business.
