Ebay failed to collect sales tax as required by Nebraska Marketplace Facilitator Law

[crazyscientist]

The Nebraska Marketplace Facilitator act went into effect on May 1, 2019.  I have 4 orders from May to August 2019 where Ebay failed to collect and remit sales tax to my home state when they were supposed to have by law. Sometime in November they finally started properly collecting sales tax.  Anyone else have this happen and how are you handling it?

[autopiacarcare · Accepted solution]

@crazyscientist  - Where are you looking to determine if eBay did or did not collect and remit tax to Nebraska?

Your mention of November made me think perhaps the confusion is that prior to November, eBay collected tax was a separate transaction between the buyer and eBay directly and then in November that changed to where that tax is now being included in the payment to the seller and then deducted back out to eBay.  If you are looking at your PayPal records to determine if tax was or was not collected by eBay, it will only show you that starting in November 2019.

[thevintagesilvershop]

It might also be that your buyer is a re-seller and has provided the proper sales tax license/info to Ebay so that they don't charge them taxes.  I am a re-seller and my buying ID has filed the proper forms and I don't get charged sales tax for Colorado. 

[crazyscientist]

Thanks for the reply - I'm looking at the Paypal export and then the actual transaction page for those Paypal transactions, so you are correct, that must be what is happening - THANK YOU!  Any idea where I can look for how much sales tax Ebay collected in those transactions?  The orders page isn't showing anything older than 90 days.

[buyselljack2016]

Sales to Nebraska do not result in sales tax being remitted to Iowa.

[autopiacarcare]

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@crazyscientist wrote:

Thanks for the reply - I'm looking at the Paypal export and then the actual transaction page for those Paypal transactions, so you are correct, that must be what is happening - THANK YOU!  Any idea where I can look for how much sales tax Ebay collected in those transactions?

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The only record of that would be within eBay, but unfortunately their reports only go back 90 days.

In Seller Hub if you go to All Orders and set the time for Last 90 Days, you should be able to download it by clicking the Download Report link.

[pburn]

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@crazyscientist wrote:

Thanks for the reply - I'm looking at the Paypal export and then the actual transaction page for those Paypal transactions, so you are correct, that must be what is happening - THANK YOU!  Any idea where I can look for how much sales tax Ebay collected in those transactions?

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So, just to be clear, eBay did not  "[fail] to collect sales tax as required by Nebraska Marketplace Facilitator Law." Is that correct? Meaning, eBay did collect the appropriate sales tax as required by Nebraska law, right? It's just that you inadvertently misread the reports provided by eBay/PayPal?

[crazyscientist]

I was incorrect, and I will fix the post - As stated by autopiacare Paypal reports don't show sales tax collected before Nov. 2019 because Ebay was charging the seller separately and remitting this outside of Paypal, so I just didn't see it in any reports that I have access to now.

[pburn]

Yes, there were a number of ongoing updates on eBay's collection of sales tax on the "Seller News/Announcements" board throughout 2019. It's always a good idea to pop in here and review that board to keep abreast of the latest developments sellers need to know.

https://community.ebay.com/t5/Announcements/bg-p/Announcements