Any clear information for eBay with remote tax laws?

[zamo-zuan]

We asked our CPA and even our CPA is having some confusion getting some clear information about how to implement the new tax laws.

According to him, marketplaces follow differnet rulings from general website sales to other states.

Some of the information he has found indicates that you only have to register with remote states if you are NOT selling on a marketplace. But eBay's announcement implies otherwise? I'm not sure if that's just a legal notice for their own protection...

Other information says since it's on a marketplace, it's eBay's responsibility to collect, and prior to eBay enforcing it for all sellers, we do not have to enforce it yet either, as this would create an unfair environment for sellers who are charging tax vs those who are not.

Other information says that even though states can legally tax remote sales, it's not yet being enforced due to ongoing trials. In which case it would not be necessary.

Some say states are trying to get you to pay retroactively, others say the supreme court ruled that you can NOT pay retroactively.

It's very hard to find the truth right now, does anyone know of any clear information regarding this?

[buyselljack2016]

Not trying to be snarky, but your CPA should be more informed than any poster on the community boards unless they are able to provide a link to an official proclimation.

[zamo-zuan]

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@buyselljack2016 wrote:

Not trying to be snarky, but your CPA should be more informed than any poster on the community boards unless they are able to provide a link to an official proclimation.

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Honestly, I completely agree. It was actually us who brought the issue up to our CPA, rather than him informing us up front. 

It's pretty hard to find official information regarding this. The information is clear that states "can" charge tax, but is not clear about actual obligations, marketplaces, and enforcement.

But it seems in this case, supposedly "not all markets are created equal".

The information we checked sounds credible. It really would be a bit unfair if, lets say you and me collected tax in Pennsylvania, but other eBay sellers did not, and it is not being enforced.

I would just like a confirmation, as we don't want any sudden surprises appearing along the way...

[dhbookds]

You/he/we are going to have to study each state's law...........

[zamo-zuan]

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@dhbookds wrote:

You/he/we are going to have to study each state's law...........

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Hard to do with conflicting information, though. Shocking & discouraging that even our CPA does not have a clear answer for us...

Step 1, I believe is to get a clear answer on if eBay sales fall under the merchants responsibility, or individual responsibility. 

Step 2, if it's individual responsibility, find out the date from which enforcement begins, so we do not end up being fools who pay out money while all the competition does not with no penalties.

[southern*sweet*tea]

I can't help you with any other states, but if you sell over $250,000 per year to the state of Mississippi - regardless of how you sell (individual website, marketplace, etc) - you have to register with the state and collect 7% sales tax for all items sent into the state (with some exceptions).  Naturally if the marketplace you sell on collects for you, then you do not have to register. Note there is no sales quantity minimum, it is a pure sales dollar total.

The internet tax law for MS truly excludes small online retailers. If anyone can sell over a quarter million dollars yearly to a state with a population of less than three million, where a full half of those aren't even online - then they truly are not a small retailer.

[zamo-zuan]

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@southern*sweet*tea wrote:

I can't help you with any other states, but if you sell over $250,000 per year to the state of Mississippi - regardless of how you sell (individual website, marketplace, etc) - you have to register with the state and collect 7% sales tax for all items sent into the state (with some exceptions).  Naturally if the marketplace you sell on collects for you, then you do not have to register.

The internet tax law for MS truly excludes small online retailers. If anyone can sell over a quarter million dollars yearly to a state with a population of less than three million, where a full half of those aren't even online - then they truly are not a small retailer.

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Thank you for the information!

Do you know if there's a date that these rulings will actually be enforced?

It seems that many are not yet being enforced, as there has been a supreme court ruling that they can not be applied retroactively, and there's still some pending cases for if it's fair work loads being applied to these laws, without simplifying them.

 For the record, I highly doubt we are shipping that much bulk to MS, but I am still hoping to educate on the situation as best as possible, lol

[dbmm-media]

find a new CPA that knows what he / she is doing.

[southern*sweet*tea]

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@zamo-zuan wrote:

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@southern*sweet*tea wrote:

I can't help you with any other states, but if you sell over $250,000 per year to the state of Mississippi - regardless of how you sell (individual website, marketplace, etc) - you have to register with the state and collect 7% sales tax for all items sent into the state (with some exceptions).  Naturally if the marketplace you sell on collects for you, then you do not have to register.

The internet tax law for MS truly excludes small online retailers. If anyone can sell over a quarter million dollars yearly to a state with a population of less than three million, where a full half of those aren't even online - then they truly are not a small retailer.

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Thank you for the information!

Do you know if there's a date that these rulings will actually be enforced?

It seems that many are not yet being enforced, as there has been a supreme court ruling that they can not be applied retroactively, and there's still some pending cases for if it's fair work loads being applied to these laws, without simplifying them.

 For the record, I highly doubt we are shipping that much bulk to MS, but I am still hoping to educate on the situation as best as possible, lol

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It is now in effect, as of 1 Sept 2018.  If you have sales of $250,000 or more in the prior 12 months to the state of MS, you are considered to have an economic nexus and must collect sales tax at the rate of 7%

http://news.cchgroup.com/2018/08/08/mississippi-issues-guidance-for-online-sellers/

https://www.taxjar.com/states/mississippi-sales-tax-online/#do-you-have-sales-tax-nexus-in-mississip...

Frankly I doubt very many Ebay sellers sell that much to MS, unless it would be some sort of bulk business stuff. I've been selling for 15 years and have had a whopping SIX sales to my own state during that time lol

[buyselljack2016]

The temporary eBay snafu* with Washington state sales tax collection would seem to indicate that the "managed marketplace" will be doing the collecting/remitting.

*Thread where it was showing in the table where you would check mark, and enter for the states that you charge sales tax for. The one where WA was no longer an option as eBay "supposedly" would be handling it.

As a small seller, unless a state got really silly with a no minimum$/no minimum # of sales, I doubt that "I" would need ro do sales taxes other than my state of residence.

eBay, as a managed market place collecting sales taxes for states that I, as an individual small seller, do not exceed their minimums will cost me money. eBay will charge their %age for handling the money transfer.

[myboardid]

You are asking questions as if there were just one answer that applies to all the states, that it will be handled the same way for each one of them.  That is not happening. 

Each states has, or will have eventually, its own rules, its own limits and requirements.  Some of them who have already passed new laws are requiring the marketplace to handle the taxes and others are demanding it from the sellers.  Different states have different minimum $$ amounts and/or different volumes of sales. 

You - not your CPA - need to check each and every state's laws and determine for yourself what is required of you.  The majority of eBay sellers are not going to be affected yet, at least by the states that have already passed laws, but we don't know the volume of business you do, so we can't advise you of your specific obligations or lack thereof.

[zamo-zuan]

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@myboardid wrote:

You are asking questions as if there were just one answer that applies to all the states, that it will be handled the same way for each one of them.  That is not happening. 

Each states has, or will have eventually, its own rules, its own limits and requirements.  Some of them who have already passed new laws are requiring the marketplace to handle the taxes and others are demanding it from the sellers.  Different states have different minimum $$ amounts and/or different volumes of sales. 

You - not your CPA - need to check each and every state's laws and determine for yourself what is required of you.  The majority of eBay sellers are not going to be affected yet, at least by the states that have already passed laws, but we don't know the volume of business you do, so we can't advise you of your specific obligations or lack thereof.

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Problem is, at least "some" of the states seem to not be enforcing, because there's also cases working through the courts saying the complication of this type of system is putting unfair burdens upon sellers.