How do I remove sales tax from an invoice?

[luvbda4ign]

For the first time in years, I have today had two buyers buy two items.  I went to send them each an invoice, since I combined shipping into one box, and SALES TAX showed up on the invoice on BOTH of them.  I am not a business...I am just an average Joe selling stuff I've had for years!

[slippinjimmy]

Consumers pay Sales Tax, it doesn't matter if you are an actual business or just a casual seller.

eBay collects the Sales Tax from the buyer and remits it to the buyer's State. You don't need to do anything and you cannot remove the tax which eBay is required by law to collect.

[wrong66]

You can't remove the sales tax?

[kare-bearb]

As a Marketplace Facilitator, eBay is required to collect & remit sales tax for several states.

Sales tax may show up on the invoice sent to the buyer, but this tax will be sent to eBay not you.

Surely you must be aware of this since you are enrolled in Managed Payments & have been paying final value fees on the buyer's total payment amount, sales tax included.

[luvbda4ign]

I have been selling for years, and NEVER had sales tax added UNTIL I tried to send an invoice for 2 items purchased.  Why does this make a difference?

[luvbda4ign]

Again....this is not a problem when I am selling an SINGLE item to a buyer.  Why does purchasing to items make a difference?

[mtgraves7984]

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@luvbda4ign wrote:

I have been selling for years, and NEVER had sales tax added UNTIL I tried to send an invoice for 2 items purchased.  Why does this make a difference?

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If you've never added sales tax, then all of your buyers had their items sent to states where there's sales no tax. Lucky you.

[soh.maryl · Accepted solution]

eBay is now required BY LAW to collect and remit state sales tax for about 43 states.

eBay collects the state sales tax.  The seller does not.  The seller doesn't have to do anything at all.

The state sales tax is based on the delivery address of the buyer.  The buyer pays the state sales tax.

Have no idea why you have not seen this on previous transactions unless you have just coincidentally been selling and shipping to buyers whose states do not require that eBay collect state sales tax. 

[luvbda4ign]

Are you telling me when a single auction ends, and the buyer submits payment, eBay is automatically including sales tax (and the buyer pays it), but I'm not aware of it because I have not sent an invoice?

[coolections]

Sales tax has been happening for awhile now. It does not matter if you are a business or not. The government decided everyone pays sales tax. Nothing you can do about it. Just so you are not surprised you also have to pay income tax at the end of the year now too.

[kare-bearb]

@luvbda4ign 

Correct.

If the buyer's ship to state has enacted a Marketplace Facilitator law,

the buyer has been paying sales tax to eBay.

You can verify this be going back to past, single sales & view the Order Details page.  You will see the sales tax (if any) that was paid by the buyer.

[soh.maryl]

Since there is a question mark at the end of your message, it seems like you are asking if you can't remove the sales tax and that answer would be "no".

[slippinjimmy]

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@luvbda4ign wrote:

I have been selling for years, and NEVER had sales tax added UNTIL I tried to send an invoice for 2 items purchased.  Why does this make a difference?

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Sales Tax was being added but YOU didn't see it, only the buyer did.

When you were receiving payment via PayPal the Sales Tax would appear as a credit in the Transaction Details and also appear as a debit when it was immediately sent to eBay to remit.

eBay started collecting Sales Tax in late 2018, originally about a dozen States which over the past two years has grown  to over 40 States. other than the few States that have no Sales Tax at all only a couple (Florida is the main example) to not require eBay to collect Sales Tax (will be changing in a few months).

[soh.maryl]

"The government decided everyone pays sales tax."

Well, not exactly.  This is a decision by the state government of each of about 43 individual states.

So probably not exactly "everyone". 

[buyselljack2016]

@luvbda4ign 

In Managed Payments if you go to an order, and click on the blue $XX.XX amount as shown here:

 

it will open a window with a breakdown of the payment as shown here: