eBay

jingle.jewels · ‎03-20-2024

New Mexico Tax and Revenue Department is demanding that I prove that sales tax was paid by ebay or else I am liable for a whopping $33,000+ (dating back to 2017). They will NOT accept the transaction detail spreadsheet as proof, even though it displays out of state, international and in-state sales tax paid info. Does eBay have an official form that may be submitted to the taxation department? Anyone else having this problem and/or a solution with their state revenue department?

Many thanks,

Jingle.Jewels

fern*wood · ‎03-20-2024

@solidguitar1961 wrote:
I'm not collecting tax , it comes out of my profit .

Are you talking about your state income tax?

kensgiftshop · ‎03-20-2024

@solidguitar1961 wrote:
@slippinjimmy wrote:
@solidguitar1961 wrote:
In Michigan , anybody that sells online is responsible for sales tax . If I sell to California I owe sales tax to Michigan for that sale since the goods were held in and sold from Michigan . Doesn't matter that Ebay collected tax FOR California . Maybe New Mexico has a law similar to that.
This is ALL false information. States can ONLY collect Sales Tax on sales that are shipped to or within their State.

It would be entirely illegal (State and Federal) for Michigan to collect Sales Tax on orders shipped from Michigan to a different State.

I'm not collecting tax , it comes out of my profit .

How is it coming out of your profit?

The buyer pay any sales tax, then Ebay collects it from the buyers payment.

Have a great day

lacemaker3 · ‎03-20-2024

@fern*wood wrote:
@solidguitar1961 wrote:
I'm not collecting tax , it comes out of my profit .
Are you talking about your state income tax?

@fern*wood -- I doubt it. I'm pretty sure that solidguitar1961 is misunderstanding something, because Michigan sales tax requirements do not work like that.

sin-n-dex · ‎03-20-2024

@lacemaker3 wrote:
@sin-n-dex, your situation seems to be very complex, and I'm not sure I understand all the implications, but it is not the same as solidguitar1961 's situation because Michigan does not require them to pay sales tax for sales that are delivered to shipping addresses outside Michigan.

They are misunderstanding something, Michigan does not require that.

That's the thing, there's no federal sales tax in the US. In Canada half the provinces have Harmonized Sales Tax which means we collect for all provinces. I'm not familiar with each state's laws (or even know how that works since my business education was in Canada).

C.

fern*wood · ‎03-20-2024

@lacemaker3 wrote:
@fern*wood wrote:
@solidguitar1961 wrote:
I'm not collecting tax , it comes out of my profit .
Are you talking about your state income tax?

@fern*wood -- I doubt it. I'm pretty sure that solidguitar1961 is misunderstanding something, because Michigan sales tax requirements do not work like that.

I thought maybe they had sales tax mixed up with their state income tax they do have to pay.

lacemaker3 · ‎03-20-2024

@fern*wood wrote:
@lacemaker3 wrote:
@fern*wood wrote:
@solidguitar1961 wrote:
I'm not collecting tax , it comes out of my profit .
Are you talking about your state income tax?

@fern*wood -- I doubt it. I'm pretty sure that solidguitar1961 is misunderstanding something, because Michigan sales tax requirements do not work like that.

I thought maybe they had sales tax mixed up with their state income tax they do have to pay.

That could be their misunderstanding.

Unless they reply again and give more information, including the link to the page where they think they are being told they have to pay sales tax for out-of-state sales (incorrectly), then we will never know what they are misunderstanding.

solidguitar1961 · ‎03-20-2024

@lacemaker3 wrote:
@fern*wood wrote:
@lacemaker3 wrote:
@fern*wood wrote:
@solidguitar1961 wrote:
I'm not collecting tax , it comes out of my profit .
Are you talking about your state income tax?

@fern*wood -- I doubt it. I'm pretty sure that solidguitar1961 is misunderstanding something, because Michigan sales tax requirements do not work like that.

I thought maybe they had sales tax mixed up with their state income tax they do have to pay.

That could be their misunderstanding.

Unless they reply again and give more information, including the link to the page where they think they are being told they have to pay sales tax for out-of-state sales (incorrectly), then we will never know what they are misunderstanding.

No I'm not mixing it up with income tax . Michigan hit me with that in 2014 when I claimed my Ebay sales.

I'm trying to find a link , everything I pull up is centered around people shipping into the state. Maybe they changed it since Ebay started charging tax on Michigan purchases.

lacemaker3 · ‎03-20-2024

@solidguitar1961 wrote:
@lacemaker3 wrote:
@fern*wood wrote:
@lacemaker3 wrote:
@fern*wood wrote:
@solidguitar1961 wrote:
I'm not collecting tax , it comes out of my profit .
Are you talking about your state income tax?

@fern*wood -- I doubt it. I'm pretty sure that solidguitar1961 is misunderstanding something, because Michigan sales tax requirements do not work like that.

I thought maybe they had sales tax mixed up with their state income tax they do have to pay.

That could be their misunderstanding.

Unless they reply again and give more information, including the link to the page where they think they are being told they have to pay sales tax for out-of-state sales (incorrectly), then we will never know what they are misunderstanding.

No I'm not mixing it up with income tax . Michigan hit me with that in 2014 when I claimed my Ebay sales.
I'm trying to find a link , everything I pull up is centered around people shipping into the state. Maybe they changed it since Ebay started charging tax on Michigan purchases.

In 2014, you were responsible for collecting Michigan sales tax for all sales that were delivered to shipping addresses in Michigan, ONLY to addresses in Michigan.

That has nothing to do with current sales in 2024. At all; in any way, shape or form.

eBay has been collecting sales tax on all sales delivered to addresses in Michigan since January 1, 2020. You were responsible for collecting and remitting all sales tax on sales before that date, but not since then.

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases.html?id=4771#section3

You are not required to pay Michigan sales tax on any sales that are not delivered to addresses in Michigan ... and eBay collects and remits the sales tax for those sales. You were not required to do that since 2014 either.

asset_liquidators · ‎03-20-2024

That's what that sounds like to me. I was going to post the same thing.

caldreamer · ‎03-20-2024

https://www.taxjar.com/blog/05-21-new-mexico-marketplace-facilitator-sales-tax-law

EBAY starting collecting sales tax for New Mexico in JULY 2019 (you are liable for any sales tax before that time). You will need go back and file "sales tax" forms with New Mexico for prior years (money that you owe).

To file "sales tax" form you need to know the following information:

$10,000 GROSS SALES

-2,000 ORDERS delivered to New Mexico

$8,000 SALES OUTSIDE New Mexico

**EBAY includes purchase price + shipping income (amount customer paid you) in their "gross sales" amount.