Help! Having Trouble Figuring Out This Whole Sales Tax Thing—ARRGGHH!

[sisnthat]

So I’m back selling on eBay after a lengthy hiatus and am wholly confused.  I see from customer purchases that eBay is collecting and remitting the sales tax.  So when I file my quarterly sales tax reports with the state (PA—see image below), if eBay is remitting the sales tax, do I just include my eBay earnings in my total gross sales (line one) but not net taxable sales (line 2)?  Or do I not need to even report those sales in my gross?  Also, is there any way for me to opt to just charge and remit sales tax in PA on my own instead of eBay automatically doing so?   Sorry if these are stupid questions, but I’m a little confused!  I’ve read the eBay policy and searched for answers here for over an hour, but it’s like reading Greek.  

Thanks in advance!

[sin-n-dex]

---

@sisnthat wrote:

So I’m back selling on eBay after a lengthy hiatus and am wholly confused.  I see from customer purchases that eBay is collecting and remitting the sales tax.  So when I file my quarterly sales tax reports with the state (PA—see image below), if eBay is remitting the sales tax, do I just include my eBay earnings in my total gross sales (line one) but not net taxable sales (line 2)?  Or do I not need to even report those sales in my gross?  Also, is there any way for me to opt to just charge and remit sales tax in PA on my own instead of eBay automatically doing so?   Sorry if these are stupid questions, but I’m a little confused!  I’ve read the eBay policy and searched for answers here for over an hour, but it’s like reading Greek.  

Thanks in advance!

---

Someone with US tax knowledge needs to pipe in...

I have a similar situation in Canada where I'm reporting taxes for different provinces and "zero rated" sales to USA and abroad.

I put the total that I sold in the gross sales. In the net taxable sales, those are my Canadian sales that I pay tax on. There is another box to account for zero rated sales so they can see how much I sold that's tax free. Your proof that tax was remitted and that you don't owe are the Paypal receipts of it being collected and remitted.

But like I said, someone with US knowledge needs to pipe in here, because I'm going based on how it works in Canada.

C.

[chapeau-noir]

In the PA tax documentation, look for 'marketplace facilitator' and see where they have the deduction or line item that you can use to report the tax that eBay has charged and remitted.

For example, I'm in Washington but with similar tax reporting.  We have a tax deduction called "Marketplace facilitator tax" - I put in the tax due on my Washington sales, then the tax that is collected through the several marketplaces I sell on and already remitted, calculate, and what I owe zero's out, then I file.  I haven't been selling anywhere lately that I need to report tax myself so basically I report tax already collected.

There is no way to have ebay not collect tax as a marketplace. 

[sisnthat]

Thanks so much! I will take a look. Very helpful and much appreciated!

[sisnthat]

Thanks for weighing in!  I’m easily confused...lol.

[kds99]

You may need to talk to the PA revenue people directly to find out how to report. In Iowa I have been advised to ONLY report gross and pay tax on the income that is generated outside of Ebay. Many quarters I report 0 income as a result. They may eventually change the procedure to have a deduction from the true gross but as to my knowledge they have not yet. But you deserve a PA expert answer, not mine.

[vrie39]

It is probably best if you speak with a CPA about these tax matters.