Florida Marketplace Sales Tax

[dmp_maritime_outlet]

Hi everyone,

Anyone here heard/read about the new sale tax requirement in Florida starting July 1, 2021 for marketplace providers?

Does it mean that like most state ebay will collect now the sales tax for Florida?

Thoughts?

Thank you everyone!

[nobody*s_perfect]

Yes, that's exactly what it means. Florida is finally joining the 40+ states for which marketplace facilitators like eBay must collect sales tax.

[valueaddedresource]

Yes, it means eBay will be collecting and remitting tax for sales to Florida.

https://community.ebay.com/t5/Selling/Marketplace-Facilitator-Tax-for-Florida/td-p/31800377

If you have nexus in FL and have a direct website or brick and mortar business,  you may still have an obligation to collect and remit tax directly for some sales.  If that applies, you may want to reach out to the state department of revenue just to confirm how you should handle things moving forward.

https://floridarevenue.com/pages/default.aspx 

[go-bad-chicken]

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@dmp_maritime_outlet wrote:

Hi everyone,

Anyone here heard/read about the new sale tax requirement in Florida starting July 1, 2021 for marketplace providers?

Does it mean that like most state ebay will collect now the sales tax for Florida?

Thoughts?

Thank you everyone!

---

@dmp_maritime_outlet @nobody*s_perfect @valueaddedresource 

Kansas's Marketplace Facilitator law also goes into effect on July 1, as well.

Missouri's Marketplace Facilitator law has been passed but will not start until January 01, 2023.

After that the only states that eBay and other marketplaces, will not be required to collect sales tax for are the 5 true no sales tax states.

Delaware 

Alaska 

Montana 

Oregon

New Hampshire 

[valueaddedresource]

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@go-bad-chicken wrote:

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@dmp_maritime_outlet wrote:

Hi everyone,

Anyone here heard/read about the new sale tax requirement in Florida starting July 1, 2021 for marketplace providers?

Does it mean that like most state ebay will collect now the sales tax for Florida?

Thoughts?

Thank you everyone!

---

@dmp_maritime_outlet @nobody*s_perfect @valueaddedresource 

Kansas's Marketplace Facilitator law also goes into effect on July 1, as well.

Missouri's Marketplace Facilitator law has been passed but will not start until January 01, 2023.

After that the only states that eBay and other marketplaces, will not be required to collect sales tax for are the 5 true no sales tax states.

Delaware 

Alaska 

Montana 

Oregon

New Hampshire 

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@go-bad-chicken  personally I'd really love to see eBay explain how they justify including sales tax in the fee calculation once all sales tax collected on the platform is 100% eBay's legal obligation and no sales tax money ever gets paid to or received by the sellers.

I know it's a pipe dream.....but a girl can dream, right? 😉

[go-bad-chicken]

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@valueaddedresource wrote:

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@go-bad-chicken wrote:

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@dmp_maritime_outlet wrote:

Hi everyone,

Anyone here heard/read about the new sale tax requirement in Florida starting July 1, 2021 for marketplace providers?

Does it mean that like most state ebay will collect now the sales tax for Florida?

Thoughts?

Thank you everyone!

---

@dmp_maritime_outlet @nobody*s_perfect @valueaddedresource 

Kansas's Marketplace Facilitator law also goes into effect on July 1, as well.

Missouri's Marketplace Facilitator law has been passed but will not start until January 01, 2023.

After that the only states that eBay and other marketplaces, will not be required to collect sales tax for are the 5 true no sales tax states.

Delaware 

Alaska 

Montana 

Oregon

New Hampshire 

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@go-bad-chicken  personally I'd really love to see eBay explain how they justify including sales tax in the fee calculation once all sales tax collected on the platform is 100% eBay's legal obligation and no sales tax money ever gets paid to or received by the sellers.

I know it's a pipe dream.....but a girl can dream, right? 😉

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@valueaddedresource 

eBay does its absolute best by dancing around having to discuss the issue in any great detail. But IMO as this issue becomes more common place knowledge eBay will eventually have to address it head on.

One area where I believe that most sellers are really going to begin to take notice is when the get purchases destined for Europe. With eBay's new requirements to collect and remit VAT on those transactions, seller's will really begin to take notice on the fees that they are paying on that VAT. VAT will often get as high as 22%.

https://www.ebay.com/help/selling/selling/vat-obligations-eu?id=4650 

So now a media seller is going to be required to pay 14.55% + 1.65% = 16.2% on the 22% tax rate for those transactions! 

[katzrul15]

Forgot this was coming - hard to believe there are only (5) hold out States left.  

I need to pay attention to this - most of my FL sales are all freight-forwarder sales to Sarasota....:(

[valueaddedresource]

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@katzrul15 wrote:

Forgot this was coming - hard to believe there are only (5) hold out States left.  

I need to pay attention to this - most of my FL sales are all freight-forwarder sales to Sarasota....:(

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@katzrul15  that's a good point, both Sarasota and Doral/Miami area are very popular freight forwarder locations. Those sales likely already have the international fee and will have fees on sales tax as well starting July 1st.

If it helps you calculate/make adjustments, the state rate is 6% and depending on possible additional county/local taxes you usually end up at about 6.5%-7% average.

[glasser]

Interesting statement buried in the VAT page:

Business sellers are eligible to use the VAT margin schemes when they are selling the following products:

• Second-hand goods
• Works of art
• Antiques
• Collectors' items

However, under EU and UK rules, where eBay has VAT collection obligations, eBay cannot legally apply margin schemes for those products. Where eBay is obliged to collect VAT on these types of items, eBay will collect VAT on the full value at the appropriate rate to the items.

So, eBay is going to collect full VAtTeven though less is due? Where does the excess go? Sharehodlers???

[go-bad-chicken]

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@katzrul15 wrote:

Forgot this was coming - hard to believe there are only (5) hold out States left.  

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@katzrul15 

Yep only 5 states left. And the real problem with those last 5 states is that only 2.5% of the total US population lives in those 5 states. So in essence eBay sellers will be paying fees on sales tax collected by EBay roughly 97.5% of the time.

[go-bad-chicken]

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@glasser wrote:

Interesting statement buried in the VAT page:

Business sellers are eligible to use the VAT margin schemes when they are selling the following products:

• Second-hand goods
• Works of art
• Antiques
• Collectors' items

However, under EU and UK rules, where eBay has VAT collection obligations, eBay cannot legally apply margin schemes for those products. Where eBay is obliged to collect VAT on these types of items, eBay will collect VAT on the full value at the appropriate rate to the items.

So, eBay is going to collect full VAtTeven though less is due? Where does the excess go? Sharehodlers???

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@glasser 

I am not sure what eBay is going to do whenever they collect extra VAT. I figure that European sellers are going to uncover that issue long before we do and will get that issue exposed for us. The one good thing about Europe is that they are much more heavily regulated than we are here in the US. If eBay is doing anything nefarious over there it won't remain a secret for very long.

[justintimegifts]

those 5 states dont have ANY sales and use tax to pay!, so ebay is completely responsible for all states that require sales tax. correct me if im wrong.

[7606dennis]

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@justintimegifts wrote:

those 5 states dont have ANY sales and use tax to pay!, so ebay is completely responsible for all states that require sales tax. correct me if im wrong.

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They will after January 1, 2023, if that is when the show me state's marketplace facilitator law takes effect. 

[lotzofuniquegoodies]

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@go-bad-chicken wrote:

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@katzrul15 wrote:

Forgot this was coming - hard to believe there are only (5) hold out States left.  

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@katzrul15 

Yep only 5 states left. And the real problem with those last 5 states is that only 2.5% of the total US population lives in those 5 states. So in essence eBay sellers will be paying fees on sales tax collected by EBay roughly 97.5% of the time.

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And it's not like skip charging tax on items that are exempt or at lower rates in the various states. Now if only they could actually document the % being charged per state like any normal company does on their day to day receipts that would have been a start in the almost right direction. Charge a standard 1 size fits all rate. If it's wrong. Tough noogies. Pardon my Canadian. On dot ca eBay calls it VAT when the names/%'s vary for each province/territory. The other thing they have been doing from the get go(at least here) is charging tax per line instead of on the grand total and rounding up the pennies. Adds up on millions and millions of transactions.

-Lotz

[luckythewinner]

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valueaddedresource wrote:

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@go-bad-chicken  personally I'd really love to see eBay explain how they justify including sales tax in the fee calculation once all sales tax collected on the platform is 100% eBay's legal obligation and no sales tax money ever gets paid to or received by the sellers.

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Justified (adj): acceptable, reasonable, understandable. 

eBay does not need to justify their fees to anyone other than eBay .. and I have no doubt that eBay thinks their fees are acceptable, reasonable and understandable.

Similarly, a seller who objects to the fees on eBay does not need to justify his continued use of eBay to anyone else - only to himself.