Does Ebay include sales tax when determining 1099 filings?

[m60driver]

Sorry,  can't seem to find a definitive answer as to whether Ebay includes the sales tax collected when determining the gross amount of sales that may then be used to determine whether a seller has reached the $20,000 limit.

[corvettestainless]

Yes; Ayden will be the responsible party to issue 1099's, and every dollar they 'processed' is what will show on your 1099.

[rosszonebricks]

No, sales tax is not included in eBay Managed Payments 1099s.

[laura-finds]

Well that was certainly definitive.

Anyone else?

[tsme35]

been asking that question for 2 months, some say yes, according to 3 different ebay reps its not going to be report but then again its ebay

[wrong66]

Best two out of three?

[mcdougle4248]

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@m60driver wrote:

Sorry,  can't seem to find a definitive answer as to whether Ebay includes the sales tax collected when determining the gross amount of sales that may then be used to determine whether a seller has reached the $20,000 limit.

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brian@ebay 

tyler@ebay 

@Anonymous 

[tyler@ebay]

Thanks for the tag @mcdougle4248!

Hi @m60driver - I was able to find a Help Page on this (link here). To quote from it:

Starting in 2019, any sales tax collected by eBay on sales made by you in the various marketplace states will not be on your Form 1099-K. This is because eBay automatically collects and remits such sales tax directly to the state (i.e. the sales tax for these states isn’t paid to you).

[mcdougle4248]

Thank You tyler@ebay  Have a great weekend 😎

[m60driver]

Thank you Mr. Tyler!

[fern*wood]

Does this apply to managed payments too?  I'm confused.  Ebay charges fvfs on the sales tax, but then subtracts out the sales tax amounts from our payment totals?  I thought we had to tract that and subtract them out?

[nobody*s_perfect]

Apparently eBay/Adyen doesn't include sales tax in your total, even though PayPal does.

[fern*wood]

When I look at the payment totals, it looks like the sales tax is added in.  Of course I haven't received a 1099k since starting in MP, but I really thought since they were charging me fees on the tax that the tax would be added in.

[gwzcomps]

I'm done being a seller here so it doesn't matter to me anymore.  You might want to make sure your CS reps know that info though tyler@ebay   Got into an argument about the reports and information we need to know with one.  Regardless sellers do need to be able to track the sales tax being charged for other accounting reasons.

[mam98031]

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@rosszonebricks wrote:

No, sales tax is not included in eBay Managed Payments 1099s.

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There actually seems to be some real confusion on this, not just for members but for Ebay it seems.  At least in with the couple people I have talked to about this.

Per the rules / laws / regulations put out by IRS, MP needs to report the Gross Receipts [that is not gross sales or income] without any deductions whatsoever.  So YES sales tax should be included.  For money processors they are to include ALL money received from buyers without discrimination.  Same way PP has always done it.

Notice the names of the boxes.

And here is what IRS says about it in the publication for how to fill out a 1099K