eBay

rshfs · ‎01-05-2020

Illinois just became one of the tax facilitator states.

Since I live in IL, does that mean I can shut off the ebay tax collection table entirely, as ebay is now collecting and remitting the sales tax for us?

mansons2005 · ‎01-05-2020

I think that you will find that you are no longer able to modify the tax table of Illinois. eBay now handles the taxes, but you should keep records as I do not know how Illinois wants you to report those sales. Of course, you are/maybe still responsible for collecting and remitting taxes if you have your own website or use a site that is not considered a Marketplace Facilitator.

rshfs · ‎01-05-2020

@mansons2005 wrote:
I think that you will find that you are no longer able to modify the tax table of Illinois. eBay now handles the taxes, but you should keep records as I do not know how Illinois wants you to report those sales. Of course, you are/maybe still responsible for collecting and remitting taxes if you have your own website or use a site that is not considered a Marketplace Facilitator.

currently I am still able to edit the tax rate for Illinois.

Currently I have my site preferences set to use the tax table....I guess I should turn it off and see what happens.

jsajanko · ‎01-20-2020

I haven't sold in a while, so does this mean that if I plan to sell something outside of Illinois, eBay will charge taxes? Or just in state?

gracieallen01 · ‎01-20-2020

You may want to check with the Illinois tax authorities as to what they require.

Not all states have the same criteria for sales or use tax. Some states don't have sales tax. You may have to collect tax for sales IN your state and remit them, as the Marketplace Facilitators are basically charged with collecting the sales tax from out-of-state buyers.

It is always wise to check with the people who might have the best information.

Not saying 'NO' doesn't mean 'YES'.

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Perhaps if Brains were described as an APP, many people would use them more often.

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the*dog*ate*my*tablecloth · ‎01-20-2020

Marketplace Facilitators also collect taxes for in state sales. In fact eBay overrides the tax table so sellers cannot collect sales tax for sales to any MF state

the*dog*ate*my*tablecloth · ‎01-20-2020

I was wrong. I looked up Illinois sales tax and in state sales taxes ARE collected by the seller. Weird

I was very surprised to see that sales to instate buyers charge the sales tax percent AND those taxes are to be collected by the seller. I didn’t know any instate taxes were collected by the seller

https://www2.illinois.gov/rev/research/legalinformation/EmergencyRules/MarketplaceFacilitator/Pages/...

thirdpersonbooks · ‎02-19-2020

Spoiler

FYI- In correspondence with State of Illinois, in state sellers selling on a marketplace to an in state buyer are supposed to remit the full ROT to Illinois. eBay (and AMZ and probably pretty much every other marketplace) appears to be collecting the use tax (less than ROT) and submitting directly to state- but state says you are on the hook for submitting the whole tax to the state and the marketplace should be sending the seller what they collect (which my belief should be the ROT, or whatever you had loaded in tax tables originally). Basically a mess, and unless fixed, means Illinois will be getting paid 2x (or almost 2x) for sales taxes and the seller will be out the full ROT (which in my case is 10% on every eBay Illinois transaction).

Follow up with state of Illinois and an accountant. For very large sellers this could be quite a significant loss.

FYI- In correspondence with State of Illinois, in state sellers selling on a marketplace to an in state buyer are supposed to remit the full ROT to Illinois. eBay (and AMZ and probably pretty much every other marketplace) appears to be collecting the use tax (less than ROT) and submitting directly to state- but state says you are on the hook for submitting the whole tax to the state and the marketplace should be sending the seller what they collect (which my belief should be the ROT, or whatever you had loaded in tax tables originally). Basically a mess, and unless fixed, means Illinois will be getting paid 2x (or almost 2x) for sales taxes and the seller will be out the full ROT (which in my case is 10% on every eBay Illinois transaction).Follow up with state of Illinois and an accountant. For very large sellers this could be quite a significant loss.

mansons2005 · ‎02-19-2020

Yeah - leave it to Illinois to enact laws fundamentally different than every other state.................................living here is always a bucket of surprises with interesting results......................

skildner · ‎04-24-2020

So here's the problem.

1. Illinois requires sellers, not eBay, to collect and remit sales tax for sales in Illinois

2. eBay has been collecting (and I'm assuming remitting to Illinois) sales tax on the seller's behalf for these sales.

3. eBay should not be doing this, but the Illinois Department of Revenue has no right to these funds and they should be reimbursed to eBay.

4. eBay should give these funds to the sellers so they can in-turn remit them to the Illinois Department of Revenue.

I am not sure how to bring this to the attention of the correct department at eBay, but it needs to be addressed immediately.

tiger_gray · ‎05-05-2020

I'm only responding in here because I see a recent post from 4-24-20 and have to believe there are other sellers based in Illinois in my position. Having just registered my business in Illinois and getting a TAX ID, which I didn't have before, suddenly IL Dept of Revenue says I must submit a state business ST-1 tax return monthly from hereon and for all back months I have been selling. Then, I will owe Retail Occupation Tax (ROT) regardless of the fact that eBays is collecting Use Tax (what people think of as sales tax) on my behalf. The problem is they only collect a flat % for every Illinois county and jurisdiction, but each has its own local taxes on top of what is being collected. So, I, as the seller, must find all intrastate sales (IL to IL) and determine the additional taxes NOT collected by eBay and pay the state myself. How to do that easily, who knows. I have more research to do unless someone can assist. Also, I believe what eBay is collecting is a flat amount simply based on what I have read in the past. I couldn't find an Illinois-specific knowledge base item to confirm. Agreeing with the above post that this needs to be addressed immediately! At minimum, open up the tax fields in listings to allow us to add the additional taxes NOT being collected, because those will all come out of the sellers pocket and they are roughly 2%-4% on top of what's already being collected.

mdw13 · ‎05-23-2020

eBay has now stopped collecting any tax on my Illinois sales. I am totally lost as to what to do as well. eBay won't let us collect tax and they won't collect it themselves, AND they illegally collected false taxes (on which they stuck us with Paypal fees) for 4 months. They also won't let us block Illinois sales. I have no idea what I'm suppose to do.

jack_bucks_ghost · ‎05-23-2020

I'm an Illinois seller--and after reading this thread, my head is reeling...I was having one of those confused AARP days already, but this thread has pushed me over the edge...lol

wholesale.stores · ‎08-12-2020

Did you have any success contacting eBay about this? I cannot get any sort of meaningful info as to what is going to happen to the IL sales tax they have collected so far. Thank you.

mdw13 · ‎08-12-2020

They started collecting tax on Illinois to Illinois transactions again shortly after this. I never got any acknowledgement from eBay that there was a problem or that they did anything about it.