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Did ebay start applying tax to purchases?

Sold an item for $19.99 with free shipping, ebay is showing total paid by buyer $21.57, paypal payment shows $19.99, sales record shows $19.99.

Message 1 of 63
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62 REPLIES 62

Did ebay start applying tax to purchases?

Is your buyer in the same State as you.

 

When I purchase from a seller in Rhode Island I am charged a sales tax.

Message 2 of 63
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Did ebay start applying tax to purchases?

Aren't some of the marketplace use tax laws in place now? Seller doesn't have to be in the same state, it requires the buyer to be in one of the marketplace states. 

 

Message 3 of 63
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Did ebay start applying tax to purchases?

No, they are in WA, I don't think they charged the buyer, maybe they are showing it for informational purpose? who knows.

Message 4 of 63
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Did ebay start applying tax to purchases?

WA is one of the States that started collecting marketplace use tax today.

 

https://community.ebay.com/t5/Announcements/UPDATE-Ongoing-Changes-in-How-Internet-Sales-Tax-May-Imp...

Message 5 of 63
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Did ebay start applying tax to purchases?


@mypostingid15 wrote:

No, they are in WA, I don't think they charged the buyer, maybe they are showing it for informational purpose? who knows.


This has been showing up under the Taxes section on listings.

 

Sales tax may apply when shipping to: Minnesota , Washington .

Message 6 of 63
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Did ebay start applying tax to purchases?


@readabouthorses wrote:

@mypostingid15 wrote:

No, they are in WA, I don't think they charged the buyer, maybe they are showing it for informational purpose? who knows.


This has been showing up under the Taxes section on listings.

 

Sales tax may apply when shipping to: Minnesota , Washington .


I found the following announcement from May:

 

https://community.ebay.com/t5/Announcements/UPDATE-Ongoing-Changes-in-How-Internet-Sales-Tax-May-Imp...

 

For some reason I thought many of us wouldn't be affected unless we sold very large amounts to these states.  This announcement sounds like ebay will collect it even if we only sell one item to that state.  Is ebay considering their overall volume from all sellers which makes the collections necessary?

Message 7 of 63
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Did ebay start applying tax to purchases?

@fern*wood, only one state (Minnesota) is shown as having a "small business exemption". eBay has a schedule published showing when they will start collecting sales tax as a Marketplace Facilitator for which states. See below for details.

 

@mypostingid15, someone said you are in Washington state, if that is correct, then yes eBay did start collecting sales tax on sales to Washington as of today.

 

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4image.png

 

 

 

Message 8 of 63
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Did ebay start applying tax to purchases?


@readabouthorses wrote:

@mypostingid15 wrote:

No, they are in WA, I don't think they charged the buyer, maybe they are showing it for informational purpose? who knows.


This has been showing up under the Taxes section on listings.

 

Sales tax may apply when shipping to: Minnesota , Washington .


Where? I can't find the tax anywhere on the sales record, it just shows in totals.

Message 9 of 63
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Did ebay start applying tax to purchases?

 

you really need to keep up with rules & regulations,

if not you may be in for a big surprise at tax time. 

Message 10 of 63
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Did ebay start applying tax to purchases?


@dbmm-media wrote:

 

you really need to keep up with rules & regulations,

if not you may be in for a big surprise at tax time. 


What rules & regulations?

Message 11 of 63
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Did ebay start applying tax to purchases?


@mypostingid15 wrote:

@readabouthorses wrote:

@mypostingid15 wrote:

No, they are in WA, I don't think they charged the buyer, maybe they are showing it for informational purpose? who knows.


This has been showing up under the Taxes section on listings.

 

Sales tax may apply when shipping to: Minnesota , Washington .


Where? I can't find the tax anywhere on the sales record, it just shows in totals.


If it's not on your records at all, then all I can guess is that if ebay is collecting the sales tax from the buyer, then it's their responsibility to send it in to your state's tax office. If that's the case, then that makes it easier for the seller because then the seller won't have to take care of collecting it themselves, right, if ebay is taking care of it?

Message 12 of 63
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Did ebay start applying tax to purchases?


@adkhighker wrote:

@mypostingid15 wrote:

@readabouthorses wrote:

@mypostingid15 wrote:

No, they are in WA, I don't think they charged the buyer, maybe they are showing it for informational purpose? who knows.


This has been showing up under the Taxes section on listings.

 

Sales tax may apply when shipping to: Minnesota , Washington .


Where? I can't find the tax anywhere on the sales record, it just shows in totals.


If it's not on your records at all, then all I can guess is that if ebay is collecting the sales tax from the buyer, then it's their responsibility to send it in to your state's tax office. If that's the case, then that makes it easier for the seller because then the seller won't have to take care of collecting it themselves, right, if ebay is taking care of it?


That seems to be the way it will work. eBay will handle it. Small sellers are not going to register/file/submitt payments with every state that starts the online sales tax collection.

Message 13 of 63
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Did ebay start applying tax to purchases?

Ebay is taking care of sales to buyers in marketplace facilitator states. Seller still needs to collect sales tax in their own State unless their State is one of the MF states.

 

If Ebay is collecting tax for sales to buyers in  your state under the MF rules, it would be double taxation if the seller also collected and remitted sales tax.

 

I suspect Ebay will have software in place for sellers who sell within the MF states to prevent seller sales tax.

 

Message 14 of 63
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Did ebay start applying tax to purchases?


@dbmm-media wrote:

 

you really need to keep up with rules & regulations,

if not you may be in for a big surprise at tax time. 


Don't panic slight_smile

 

Ebay states:

 

"Based on applicable tax laws, eBay will calculate, collect, and remit sales tax on behalf of sellers for items shipped to customers"

 

This means you don't have to deal or worry about collecting and remiting taxes if your state requires it because eBay is taking care of it.

 

This is the only sensible way to handle it. It would be impossible, and a real nightmare, for states to collect taxes through the individual sellers. It would not even be financially feasible. All the states care about is getting their revenue and this will accomplish that.

 

Kudos for eBay to get this in place for the sellers. Maybe now sellers will have something nice to say about eBay.

Message 15 of 63
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