Does eBay collect and remit the required local and state sales taxes for Colorado?

[canesi]

Before I set up my business, I'm researching the tax requirements. I'm confused about state and local sales taxes.  I have economic nexus in Colorado so for any sales I make to Colorado addresses, the buyer must pay Colorado sales tax and if local taxes apply (for home rule cities, etc.), those must be collected and remitted also.  Is this correct?  Does eBay collect and remit the CO state AND local taxes for me?  Example: Carbondale, CO, is a home rule city. They have their own local sales tax. If I were to sell and ship an item to a Carbondale address would eBay collect and remit both the state and local tax for me?   If eBay collects and remits, do I have any responsibilities in that process?  Thank you!  

[mam98031]

I gave you links up thread on what your state requires of you.  Did you have a chance to read through it?

Don't depend on us to give you an answer that your state would like.  That surely could get you into trouble.  You need to be in contact with your state and find out what is required of you.  But the links I supplied is a great place to start.

[fazthegreat]

I'm sorry I don't see a link. Is that earlier in the post somewhere?

[mam98031]

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@fazthegreat wrote:
I'm sorry I don't see a link. Is that earlier in the post somewhere?

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Sorry about that.  I confused you with another poster.  That is my fault.  What state are you in?

[fazthegreat]

No worries, I'm in GA. I appreciate you taking the time to help me. Thanks

[mam98031]

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@fazthegreat wrote:
No worries, I'm in GA. I appreciate you taking the time to help me. Thanks

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Well I wasn't completely wrong.  I did give you the links, just not on this thread but on the thread you started.

https://community.ebay.com/t5/Selling/File-Sales-Tax-to-the-state-of-GA/m-p/31068535#M1619005

@fazthegreat 

[fazthegreat]

You are right, sorry for the confusion. So here is my issue, all my sales are only on Ebay. I want to file 0 as described on that link:

If you only make sales via marketplaces, and all of your marketplaces collect sales tax from buyers on your behalf, then you may only be required to file a “zero return.” (This is a return showing that you do not have any sales tax to remit to the state.)

So if you look at the screenshots I posted, do I just check on the first step that there was no sales tax activity (this worries me that I'm lying because there was sales tax activity) and submit. I believe this submits 0.  Or I have to say yes to that and then enter "Total State Sales" and enter the same value in the "Exempt Sales"  field to make Taxable Field 0. (again not sure if this right because tax is not exempt and was in fact  collected and remitted on my behalf by Ebay )

At this point I'm thinking I just have to say No on the first step and submit. I'm over complicating it.

Thank you!

[mam98031]

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@fazthegreat wrote:

You are right, sorry for the confusion. So here is my issue, all my sales are only on Ebay. I want to file 0 as described on that link:

If you only make sales via marketplaces, and all of your marketplaces collect sales tax from buyers on your behalf, then you may only be required to file a “zero return.” (This is a return showing that you do not have any sales tax to remit to the state.)

So if you look at the screenshots I posted, do I just check on the first step that there was no sales tax activity (this worries me that I'm lying because there was sales tax activity) and submit. I believe this submits 0.  Or I have to say yes to that and then enter "Total State Sales" and enter the same value in the "Exempt Sales"  field to make Taxable Field 0. (again not sure if this right because tax is not exempt and was in fact  collected and remitted on my behalf by Ebay )

At this point I'm thinking I just have to say No on the first step and submit. I'm over complicating it.

Thank you!

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As was explained to you on the other thread, you are seeking tax advice from other sellers.  That is not necessarily a very good idea.  You need to READ the links I provided for you from your state and learn the process for YOUR state if you want to do this according to the requirements of your state.  If you don't understand some of their instructions, then contact the proper department in your state.

I'm not trying to be non responsive to you.  I'm trying to get you to understand that taking tax advise on the threads may not be in your best interest.  Take some time, read and learn.  Call your state if you need to for more information.  If you still can't figure it out.  The seek the advise of a local CPA.  It will be money well spent.  Besides you won't need a whole lot of their time.

[blakapinocreations]

Yes, eBay collected sales tax and they gave me the net amount.  But I have a question, why is CDTFA (California Department of Tax and Fee Administration) still asking for my sales tax, and informing me, I haven't paid my sales tax? 

What to do?

[Anonymous]

Yeah, "Thank God".  The problem we and a lot of other folks are having is that eBay HAS collected al these funds from taxes - BUT THEY'RE NOT REMITTING THEM TO THE STATE DEPARTMENTS OF REVENUE AS THEY STATED THEY WOULD DO!

So now these states are sending out letters warning of collection actions and fines - because eBay seems to have "forgotten" to remit the amounts by the deadlines (our state  deadline is January 20th) - and here it is March 16th, and NOTHING has been remitted by eBay yet!

Worse, we can't even FIND the total amounts because eBay doesn't keep more than three months' worth of the reports that include this info.  Since we never anticipated having eBay renege on the promise to pay the taxes collected, we didn't have to print or download the reports at all.

It seems like our state isn't the only one eBay is doing this to, and a LOT of sellers are going to be looking to the West in a migration with flaming torches and pitchforks!

We're still trying to get answers from eBay and have 7 calls that eBay promised to return with "managment/supervisory" personnel, and so far NOT ONE CALL has been return to us!

When I imagine the tens or hundreds of MILLIONS OF DOLLARS amassed by eBay from thousands of sellers, it makes me wonder how eBay is going to get out of this mess.  We've already spoken to our state's department of revenue, and they've indicated an "interest" in getting the truth from eBay.  Good luck to them!