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EBay collecting tax from buyers in Washington State and Minnesota

I just had a buyer contact me asking for a refund of .55 cents for tax collected on an item, which I had not mentioned in my listing.

I contacted eBay and apparently Washington State and Minnesota now require sales tax on purchases by buyers who live in their state, and eBay is adding it to their bill and will be responsible for forwarding the monies collected to the appropriate state..

The nightmare begins.  Other states are planning to require taxes starting in various months, so be aware.

I plan to include an addendum to all my listings indicating that those who live in Washington State or Minnesota will now be charged tax by their State, that eBay will be the collection agency and I am not in any way involved.

Anyone have a better suggestion?

 

Message 1 of 7
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Re: EBay collecting tax from buyers in Washington State and Minnesota

It is in your listings under the shipping and payment tab and then taxes.  Are you in a state that doesn't require you to collect sales tax within your state?  It's in the same place that shows up.

 

I agree there is a lot of confusion right now over this and feel ebay needs to put out more information so we know before being attacked by buyers.

Message 2 of 7
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Re: EBay collecting tax from buyers in Washington State and Minnesota

I would not add additional info to your listings about this.  It shows it at checkout before the buyer pays.  Also residents of the states that are now collecting internet sales tax should be aware from there local laws and news feeds.

 

I would just direct them to eBay for the refund request.  We sellers deal with enough requests and this one is eBay's to deal with.

 

Good Luck Selling!

Message 3 of 7
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Re: EBay collecting tax from buyers in Washington State and Minnesota

Washington State is NOT supposed to charge tax unless seller is selling more than $10,000 to WA State Residents.
Unless they changed this law already??!! To include ALL sales?
Because I as a buyer in WA State is **bleep** OFF!! at our Governor and greedy liberal TAX hounds attacking our Constitutional rights, free markets, trading among the independent States. I am trying to buy a $250 item today.. but can NOT find one seller that does not have tax included on item at checkout? Am I missing something, did they change this law already?Since it was only in 2018 it was implemented!!!!  ($10K threshold)

Message 4 of 7
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Re: EBay collecting tax from buyers in Washington State and Minnesota

@sea-beach  - Washington and other states have passed Marketplace Facilitator laws.  Basically that means for marketplaces like eBay and Amazon, the Marketplace is responsible for collecting and remitting the tax rather than the individual sellers.  It also means that the thresholds are measured on sales from the whole marketplace, rather than for each individual seller. 

 

Here's a link to the Washington Department of Revenue for more info.  Hope that helps!  https://dor.wa.gov/find-taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/mar...

Message 5 of 7
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Re: EBay collecting tax from buyers in Washington State and Minnesota

Yes,, sounds like we need another revolution.

Message 6 of 7
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Re: EBay collecting tax from buyers in Washington State and Minnesota

How does it make sense that buyers pay sales tax to small neighborhood shops but don’t have to when they buy from strangers on the Internet?

 

It doesn’t make sense to give a break to strangers across the country. Sales tax should be fair.

 

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