File Sales Tax to the state of GA

[fazthegreat]

Hi,

I'm new to selling here on ebay and I have been going crazy trying to find information about the sales and use tax. Everything I have found so far just says that some states require you to report your Sales and Use Tax even though Ebay takes care of it for you.
I live in GA and I already got the Sales and Use Tax ID. The state does require me to file the return but I'm not sure how. There is no guidance on their website for folks that sell on these market facilitator websites.
When I go to file the return, It has the option to select 0 activity for Sales and Use Tax or ofcourse choose the steps to put in the numbers for your sales, tax etc. Can someone please advise what do I need to do? If I select 0 that is a lie but if I choose the other step. 
1- Do I have to provide numbers for both: Sales and Use Tax?

2- For sales tax I can find my sales in the state of GA but why would I be paying this if Ebay is taking care of it

Sorry I'm small time seller and don't feel I have to consult with a CPA yet. Folks here that have been doing this for years mush have an answer.

Please advise, thank you!

[nobody*s_perfect]

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@fazthegreat wrote: ... I live in GA and I already got the Sales and Use Tax ID. The state does require me to file the return but I'm not sure how. There is no guidance on their website for folks that sell on these market facilitator websites....

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You don't have to do anything about the sales taxes that are collected by eBay or other marketplace facilitators.

Sales tax is based on the location of the buyer, not the location of the seller.

[fazthegreat]

That's what I thought that I probable don't have to do anything. I recently got the Sale and Use Tax ID from the state and I was receiving emails about filing the return with the State. After spending some time on Google and Youtube. I believe I have to report to the state even if it is Zero. But that's where the whole confusion is (stated in my post above)

[mam98031 · Accepted solution]

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@fazthegreat wrote:
That's what I thought that I probable don't have to do anything. I recently got the Sale and Use Tax ID from the state and I was receiving emails about filing the return with the State. After spending some time on Google and Youtube. I believe I have to report to the state even if it is Zero. But that's where the whole confusion is (stated in my post above)

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That is not necessarily correct.  While you won't have to collect and remit sales tax to your state because Ebay will be doing that for you, the chances that you still need to file your report with your state is probably pretty likely.  You will have to check with your state for their requirements.

For example, in the state I'm in.  Ebay collects and remits the sales tax for my state too.  But I'm still required to file my reports and show the deduction for the sales in which Ebay collects and remits sales tax for.  

So while you are having trouble getting detailed instructions from your state, you need to keep trying until you get them or find them.  They are out there to be had, you just need to locate them.

In the meantime, make sure you are keeping accurate records.

Some info for you to read.

Amazon and eBay are both now collecting sales tax from buyers on your behalf, you are not required to collect sales tax from your buyers. (However, if you are registered to collect sales tax in Georgia you will still be required to file periodic sales tax returns.

https://blog.taxjar.com/georgia-marketplace-facilitator-sales-tax-law-explained/

https://www.taxjar.com/states/georgia-sales-tax-online/

[fazthegreat]

If you look at this statement of mine:

After spending some time on Google and Youtube. I believe I have to report to the state even if it is Zero.

I am more certain that I have to file. I was just replying to the person above that initially I had thought that I did not have to do anything. My uncertainty now is more about if I file 0 with them or still have to somehow enter all the numbers and not pay tax.
If no one can answer this here I am going to call the State Department of Revenue.

Thanks for you reply

[cashvaluerecovery2011]

Im in Ga. Im not a cpa so do your on due diligence here. What i did before the internet sales tax rule was this......only online sales with a ga buyer i would keep on a separate spread sheet. Date, amount of sale, item number, and i woul put away 7% of that sale to pay for the taxes the next filing time. If i sold in person locally i charged the buyer the 7 percent and logged it as local sale yada yada. January the next year you log onto ga.gov , click previou year filing. Enter ALL ga sales sales and use activity with your county. The math will be done for you. Press submit. Pay online and keep printed receipt.

Now that ebay collects sales tax i only have to record my local and in person sales. And of course any online sales done person to person where im shipping inside ga as well.

On a side note coins and bullion and currency sales in ga are exempt from sales tax.

[fazthegreat]

Oh this is great, a fellow Georgian! So if I understand correctly. You are not paying taxes, as Ebay is collecting and remitting. You are only reporting the numbers?
Also, what about "Use Tax" that Ebay collects for other states, you have to enter those numbers too? This is the first step when I go to file sales tax.

[fazthegreat]

Thanks for your help. I'll follow the post and the guidance you provided.

[mam98031]

I wish you nothing but the best.  I hope you know I just didn't want you to take advice here on the thread about this that could have caused you problems with your state reporting.  

[fazthegreat]

I appreciate you looking out for me. Thank you!

[cashvaluerecovery2011]

All of my sales are taxed at the point of sale so its not a use tax. On ebay they tax my buyer at the point of sale so this is a sales tax. The buyers i charge tax in person or a ga buyer online but on a site where they arent taxed....i tax them, and again this is a sales tax. If not im still remitting, reporting, and paying the sales tax on those purchases. 

If the button on the ga.gov site says "did you have sales and use tax/sales". And there are sales you still need to report and pay....then the answer is yes. 

If your question is "do i report all of my already ebay taxed sales as sales and use tax?" Then my answer would be to hire a cpa. I do not report those already taxed sales because every single one of them would have to be reported as tax exempt from ga sales and use due to being out of state sales..........even though the sale took place in georgia due to item and seller being in georgia.

The whole internet tax thing was just tossed out there without preparing. So do what you need to be legal. Do not do so much that it costs you right out of business. I personally pay every penny owed. But i do not report 100s of 1000s of dollars that taxes are not owed or due on because it would be impossible to do the 5 people worth of paper work. 

Example. $4000 coin. Purchased on FB from a GA buyer. Whether paid for online or in person this buyer owes zero sales tax. Exempt item in ga. If bought on ebay....ebay charges and takes sales tax. Who knows if the buyer gets this money back. Or if ga keeps it. Or if ebay knows its exempt and keeps it. Im not reporting it as sales tax because i didnt take it nor is it owed and if i report it ga revenue dept might put the burden on me any way.

A cpa can answer this stuff in an hour. Well worth the money.

[fazthegreat]

Thank you for all the info, very helpful.