How to calculate the tax collected

[mythyanlee]

I have a question. How can we calculate the selling tax collected?

Last year it was collected directly by the Paypal.

This month I got an email that Paypal is separated, and the account is solely linked by the Ebay and your bank checking account. 

Then how can we see the tax?

Why are the final fees collected based on an estimate value, but not on the actual selling price?

Many thanks

[buyselljack2016]

@mythyanlee 

Fees are based upon the actual buyer payment.

Buyer payment is broken down in orders.

Shows item selling price. 

Shipping(if any)

Tax (if any)

[lacemaker3]

@mythyanlee, I see that you are located in Michigan. eBay started collecting the sales tax due on any purchases that were delivered in Michigan in Jan 2020. If you were collecting and remitting sales tax for Michigan purchases before then, you don't have to do it since then, so you don't need to know how much sales tax was collected.

If you were wondering about sales tax for other states, you don't need that information either. But, I think that you can look at the details for each transaction to see how much tax was collected.

The final value fees are based on the entire amount of the buyer's payment. That's standard for processing financial transactions, and the FVF include the processing as well as eBay's cut, so that's how eBay decided to calculate. It is legal.

[duffy4444]

   You can see the tax collected from the buyer in the transaction details of each sale.

   You do not have to do anything regarding sales tax remittances to the hundreds, if not thousands of state, local US sales tax authorities (including UK VAT if you ship there). Ebay has hired the staff to do all that, including staying on top of all the tax law changes nationally - FOR YOU.

   If you have been filing a sales tax return in your state and remitting the sales taxes you collected in years past before eBay did it for you, you may want to contact your state or local sales tax authority to see how to handle the return now. Hopefully they'll say to forget it, or there may be a new line on the form for the sales taxes being handled for you.

Cheers, Duffy

[mythyanlee]

Thanks

[mythyanlee]

But that tax is directly collected from the seller

[mythyanlee]

Then why we only get a part of the actual payment?

Does your ebay account also separated from the paypal?

[mythyanlee]

Thanks

You mean that is delivered in MI, or it is sent from MI?

[johnrj1226]

No need to worry about state sales tax, eBay handles it -

Read below

"Based on applicable tax laws, eBay will calculate, collect, and remit sales tax on behalf of sellers for items shipped to customers in certain states. For a complete list of states please see our Taxes and import charges page.

• In particular, pursuant to the requirements under Assembly Bill 147 - opens in new window or tab (AB 147) obligating eBay to collect California sales and use taxes and for those purposes only, buyers and sellers that are subject to California sales or use taxes agree to commercial terms as defined under California Commercial Code Section 2401(2)(b) - opens in new window or tab and that order acceptance and the place of sale for sales and use tax purposes is considered to occur at eBay's location in San Jose, California.
• Once eBay starts to collect tax in the required states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting, and remitting sales tax. The collection process will apply to all sales with delivery in the required states whether the seller is located in or outside of the United States. Sellers offering delivery in the U.S are not able to opt out of selling items into the required states or to opt out of eBay automatically collecting sales tax.

[buyselljack2016]

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@mythyanlee wrote:

Then why we only get a part of the actual payment?

Does your ebay account also separated from the paypal?

---

eBay sellers in Managed Payments do not deal with PayPal for payments. Labels can be purchased using PayPal, or pending funds.

The buyer pays. The seller fee is deducted based on the applicable %age.

Varies by category for some sellers. "Store" fees are different than "non-store" fees.

If you choose to pay for shipping labels with pending funds that amount is also deducted.

The sales tax paid by the buyer is deducted. (Remitted by eBay to the states as posted by johnrj ).

Whatever is left is sent to your checking account via a "payout" after "processing". Default for payout is "daily" (daily m-f when funds are available) Payout is done the next "business day" after processing is complete. Payout can be changed to "weekly" (Tuesday)

[fredoniacoinandtreasure]

I'm small potatoes so I only have to report sales tax for in state sales, but as ebay collects and submits that I list that as part of my gross sales but not part of my taxable sales. The only beef I have with ebay on this is that they collect their full fee on the sales tax as well as the rest. Sales tax should not be subject to the FVF, only to the collection fee. 

[soh.maryl]

The STATE SALES TAX is based on the buyer's shipping address, is collected from the buyer and and remitted by eBay to the treasurer of the state of the buyer's shipping address. 

[mythyanlee]

Thanks

[fab_finds4u]

The fvf is based on the total amount of money they collect from the buyer.  eBay, in turn dispurses those funds to the seller and to the appropriate state. They want to be paid for ALL  the money they process!  

[7606dennis]

Sales tax rates are determined by the individual states and may or may not include S&H as being taxable depending upon the state.  Since most state sales taxes may also include local option taxes which depends upon where within the state the item is delivered, it is nearly impossible to give a simple reply to your question.

Of course, since most states have now implemented marketplace facilitator laws it is now eBay's responsibility to calculate and collect the correct amount of sales tax for those states.