eBay

4uabargain · ‎05-15-2019

I ran into a situation yesterday which has brought up a concern with Ebay now collecting sales taxes from buyers within certain states. My case involves New Jersey where effective May 1, 2019 Ebay now collects sales tax on those buyers of mine where the shipping location is in New Jersey. The problem has come about that I as an individual seller am already registered with the State of New Jersey to collect sales tax from New Jersey buyers and my listings were already set to collect sales tax..but now since May 1st Ebay started collecting the sales tax and has taken that burden off me the buyer....This presents a problem...since I am already registered with the State of New Jersey and have to file my quarterly report even if I have no taxable sales to report (since Ebay took that burden off me) how do I do my quarterly filing. Yes, I believe I can dissolve my business in the State of New Jersey but then that becomes a problem as I do not pay sales tax when I am out shopping for my reselling needs. If I dissolve my business, then I know longer will have a tax exempt number to use when out shopping for resale. Anybody out there have any thoughts on this, or something else I was thinking is...if I convert my Ebay account to a business account, would Ebay still collect the sales tax on my behalf for sales in New Jersey. Any thoughts or insights you can give is much appreciated.

pburn · ‎05-15-2019

I'm not quite clear--was the buyer charged tax twice? Once by you and once by eBay?

orangehound · ‎05-15-2019

Since eBay is collecting and remitting sales tax on your behalf, when you file with New Jersey you simply report $0 in taxable sales.

tealt · ‎05-15-2019

@4uabargain wrote:
I ran into a situation yesterday which has brought up a concern with Ebay now collecting sales taxes from buyers within certain states. My case involves New Jersey where effective May 1, 2019 Ebay now collects sales tax on those buyers of mine where the shipping location is in New Jersey. The problem has come about that I as an individual seller am already registered with the State of New Jersey to collect sales tax from New Jersey buyers and my listings were already set to collect sales tax..but now since May 1st Ebay started collecting the sales tax and has taken that burden off me the buyer....This presents a problem...since I am already registered with the State of New Jersey and have to file my quarterly report even if I have no taxable sales to report (since Ebay took that burden off me) how do I do my quarterly filing. Yes, I believe I can dissolve my business in the State of New Jersey but then that becomes a problem as I do not pay sales tax when I am out shopping for my reselling needs. If I dissolve my business, then I know longer will have a tax exempt number to use when out shopping for resale. Anybody out there have any thoughts on this, or something else I was thinking is...if I convert my Ebay account to a business account, would Ebay still collect the sales tax on my behalf for sales in New Jersey. Any thoughts or insights you can give is much appreciated.

I'm in California, where eBay will start to collect sales tax on my behalf on (I think), September 1st. I have always collected sales tax from CA buyers via my own resale # (CA speak for a state license to collect sales tax and be able to skip the tax when I buy in state for retail). It sounds like your set-up with NJ has been the same.

1) It's been stated somewhere (by a blue?, on a help page, or?) that once eBay starts to collect the sales tax, it will disable my ability to myself collect sales tax. I assume that this has already happened to you in NJ.

2) I pay my CA sales tax yearly, and I am assuming (hoping?) that when my next payment is due, the state has been smart enough to adjust the form I file to account for eBay's taking over sales tax collection for me. I'd hope that NJ would also be that smart, and you won't have any trouble filing.

3) I'm a bit confused about why you would dissolve your NJ business. Can you just keep filing forever, even though you are no longer collecting sales tax, in order to keep your purchase-for-resale-privileges? That might be a question to submit to the NJ sales tax authority.

tealt · ‎05-15-2019

@4uabargain wrote:
...something else I was thinking is...if I convert my Ebay account to a business account, would Ebay still collect the sales tax on my behalf for sales in New Jersey. Any thoughts or insights you can give is much appreciated.

P.S.

4) Converting to an eBay business account will make no difference. EBay will still collect the NJ sales tax on your behalf.

twnpopcards · ‎05-15-2019

@tealt wrote:
@4uabargain wrote:
I ran into a situation yesterday which has brought up a concern with Ebay now collecting sales taxes from buyers within certain states. My case involves New Jersey where effective May 1, 2019 Ebay now collects sales tax on those buyers of mine where the shipping location is in New Jersey. The problem has come about that I as an individual seller am already registered with the State of New Jersey to collect sales tax from New Jersey buyers and my listings were already set to collect sales tax..but now since May 1st Ebay started collecting the sales tax and has taken that burden off me the buyer....This presents a problem...since I am already registered with the State of New Jersey and have to file my quarterly report even if I have no taxable sales to report (since Ebay took that burden off me) how do I do my quarterly filing. Yes, I believe I can dissolve my business in the State of New Jersey but then that becomes a problem as I do not pay sales tax when I am out shopping for my reselling needs. If I dissolve my business, then I know longer will have a tax exempt number to use when out shopping for resale. Anybody out there have any thoughts on this, or something else I was thinking is...if I convert my Ebay account to a business account, would Ebay still collect the sales tax on my behalf for sales in New Jersey. Any thoughts or insights you can give is much appreciated.

I'm in California, where eBay will start to collect sales tax on my behalf on (I think), September 1st. I have always collected sales tax from CA buyers via my own resale # (CA speak for a state license to collect sales tax and be able to skip the tax when I buy in state for retail). It sounds like your set-up with NJ has been the same.

1) It's been stated somewhere (by a blue?, on a help page, or?) that once eBay starts to collect the sales tax, it will disable my ability to myself collect sales tax. I assume that this has already happened to you in NJ.

2) I pay my CA sales tax yearly, and I am assuming (hoping?) that when my next payment is due, the state has been smart enough to adjust the form I file to account for eBay's taking over sales tax collection for me. I'd hope that NJ would also be that smart, and you won't have any trouble filing.

3) I'm a bit confused about why you would dissolve your NJ business. Can you just keep filing forever, even though you are no longer collecting sales tax, in order to keep your purchase-for-resale-privileges? That might be a question to submit to the NJ sales tax authority.

I doubt very much that CA will adjust the form to account for these sales. What you will probably need to do is now count these sales as Non Taxable sales on the Sales Tax return so that you only pay tax on those sales that you made and actually collected sales tax on.

the*dog*ate*my*tablecloth · ‎05-15-2019

Technically ebay is not collecting on the sellers behalf. They are collecting because they now owe the tax not the seller.

4uabargain · ‎05-15-2019

No, the buyer only paid the sales tax once...to EBay...I did not get the sales tax money...Ebay does.

4uabargain · ‎05-15-2019

@tealt wrote:
@4uabargain wrote:
I ran into a situation yesterday which has brought up a concern with Ebay now collecting sales taxes from buyers within certain states. My case involves New Jersey where effective May 1, 2019 Ebay now collects sales tax on those buyers of mine where the shipping location is in New Jersey. The problem has come about that I as an individual seller am already registered with the State of New Jersey to collect sales tax from New Jersey buyers and my listings were already set to collect sales tax..but now since May 1st Ebay started collecting the sales tax and has taken that burden off me the buyer....This presents a problem...since I am already registered with the State of New Jersey and have to file my quarterly report even if I have no taxable sales to report (since Ebay took that burden off me) how do I do my quarterly filing. Yes, I believe I can dissolve my business in the State of New Jersey but then that becomes a problem as I do not pay sales tax when I am out shopping for my reselling needs. If I dissolve my business, then I know longer will have a tax exempt number to use when out shopping for resale. Anybody out there have any thoughts on this, or something else I was thinking is...if I convert my Ebay account to a business account, would Ebay still collect the sales tax on my behalf for sales in New Jersey. Any thoughts or insights you can give is much appreciated.

I'm in California, where eBay will start to collect sales tax on my behalf on (I think), September 1st. I have always collected sales tax from CA buyers via my own resale # (CA speak for a state license to collect sales tax and be able to skip the tax when I buy in state for retail). It sounds like your set-up with NJ has been the same.

1) It's been stated somewhere (by a blue?, on a help page, or?) that once eBay starts to collect the sales tax, it will disable my ability to myself collect sales tax. I assume that this has already happened to you in NJ.

2) I pay my CA sales tax yearly, and I am assuming (hoping?) that when my next payment is due, the state has been smart enough to adjust the form I file to account for eBay's taking over sales tax collection for me. I'd hope that NJ would also be that smart, and you won't have any trouble filing.

3) I'm a bit confused about why you would dissolve your NJ business. Can you just keep filing forever, even though you are no longer collecting sales tax, in order to keep your purchase-for-resale-privileges? That might be a question to submit to the NJ sales tax authority.

The reason I would think about dissolving my business in New Jersey is so that I do not have to go in at the end of every quarter and file the report. My report would have $0 reportable sales which seems to me would be a flag for New Jersey to start questioning things and then starting to audit me.

the*dog*ate*my*tablecloth · ‎05-15-2019

eBay has been disabling seller sales tax collection when the MF law goes into effect for that State.

orangehound · ‎05-15-2019

@the*dog*ate*my*tablecloth wrote:
Technically ebay is not collecting on the sellers behalf. They are collecting because they now owe the tax not the seller.

Or, to put it another way, we are no longer sellers and these are no longer our customers. eBay is the seller and we are the wholesaler/supplier to eBay (in case this little nuance has not yet been grasped by eBay's wholesale minions).

dtexley3 · ‎05-15-2019

Sellers in WA posted about this before and when they contacted their state they were told to claim the income where eBay collected as 'non-taxable' and later issued guidance to the same effect.

If you are concerned I would recommend (as others' have) to contact you state tax authority and ask.

Member of the Grumpy Old Man crew

the*dog*ate*my*tablecloth · ‎05-15-2019

Taxing laws have nothing to do with EBay business policies. This is purely and simply a way for the States to put the burden on the big guys.

Not everything is an EBay vs the lIttle guy conspiracy.

cssurplus · ‎05-15-2019

I was told my MN dept of revenue just to treat it as a non taxable sale as we collected no sale tax on the transaction. We have had many sales tax filings with large gross sales and little to no taxable sales over the last 20 years and has yet to trigger an audit.

I