mam98031 • Volunteer Community Member • Buyer/Seller since 1999
This is a win, win for eBay I sell maybe 20,000 collectively in 50 states and over seas . I do not have to remit to states because I am too small a seller right? Wrong eBay is collecting the state tax but because I am small they do not have to remit it? Who keeps that collected tax money?
That is not correct. Ebay does have to remit the sales tax they collect to the appropriate states no matter the size of the seller. To get around those pesky rules about the minimum sales requirement into any given state, the states came up with Facilitator Laws. That removes the requirements from the individual sellers and puts it on the to the facilitators, like Ebay. By doing that, the minimum sales requirement into these states is based off of the TOTAL sales by sellers selling on Ebay into each state and no longer on individual sellers.
You just need to update yourself on the differences between Facilitator Laws for any given state and the requirements if you were selling from your own site or otherwise on your own.
They sent me an email (very vague mind you) that they would collect total amount from customer on invoice... I have a question about this, are they charging me eBay fees and PayPal fees on taxes collected?
This is also inaccurate. Ebay does not charge FVFs on the sales tax collected from the buyer, nor does PP. PP charges you the fee on the total amount you receive. And since you are not receiving the sales tax money, there is no fee on it.
This new e-mail I received today makes me think that it might. Like to know for sure.
I've got that email. What are your questions, maybe I can help.
Some on-line retailers are absorbing the Sales Tax charged within a Promotional Credit Card Program. If you use their Credit Card, the Sales Tax is refunded. 
eBay should look into this as a way to Attract and Keep Buyers here. 
@abraham75418 wrote:Thanks for info. I did contact eBay and they did give me info on fvf that they were not collecting that on the tax. They however had no clue to why that they had to collect taxes in first place. When I ask about minimum thresholds from state to state for sellers they sent me to a supervisor. He is supposed to call me back. I did not know about these facilitator laws that they have enacted until your post. Appreciate the info and will pass it on to the eBay representative when they call back
Well some CSRs at the call center are better informed than others. The reasons why sales tax is being collected should not be a mystery to anyone at this point. Ebay has done a good job of sending emails, creating announcements and updating policies on the subject.
They [the CSRs] aren't likely to have the information about the minimum thresholds for each state that has a internet sales tax law in place. There is no reason for them to know that. The Ebay CSRs are NOT tax consultants or experts. You could find that information if you need it by just Googling it.
It is important to review the emails Ebay sends. But in an effort to help you, bookmark this link below as it is likely to help you a great deal.
https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121
It is interesting because ebay claims it is merely facilitating the transaction and not actually the seller. Yes I know they (hopefully) pass it on to the states "on behalf of the seller."
Lets expand on that a little bit. It is a FACT that Ebay is NOT the seller. They don't "claim" it, they simply are NOT the seller of anything on Ebay other than their services in regards to the site itself.
So you are of the opinion that Ebay, when directed by LAW to collect and remit sales taxes to states that have Facilitator laws in place, that Ebay would only collect those taxes and not pay the states?? Since there are actual laws in place that Ebay would be breaking, exactly how long do you think it would take before Ebay was buried in law suits?? Ones they would lose to be sure. And the penalties. So you are of the opinion that this is something Ebay would do?? Why?
I just pruned by watch list big time because the extra taxes just rub me the wrong way.
Then contact your state legislators and tell them. It is the STATES that are passing the laws because the Supreme Court reversed the law that prevented this from happening. Seems you are blaming the wrong entity. Ebay actually spent a lot of money and fought HARD to prevent this. Unfortunately we all lost.
The prices for items I purchase are now that much closer to distributor prices that I will just go through normal channels and not ebay as my first choice.
Well if they are, then they were before sales tax got added. If you buy it locally you are going to pay sales tax too. So if you pay $20 on Ebay for an item plus $2 in taxes, that is $22. If you buy it locally for $22 you will pay taxes on that $22 of about $2.20, total price $24.20.
And as others have mentioned, buying locally will save you the shipping charge.
That is a valid point. However not everything is available locally. And there are lots of people that live rurally and would have to drive a good distance to get what they find on Ebay, if they find it at all. Some people are disabled and shopping on the internet gives them the independence to make the decision on what they need instead of depending on others to go to the store and select what they think they need. And the list goes on. We are a diverse group of people.
Not everything works the same for everyone. I respect that this may not be for you. But there are lots of people it works well for. I hope you find what you are looking for at the prices you are willing to deal with no matter what you decide to do.
@thehonorabletrader wrote:Each state dictates what eBay does now in relation to taxes thanks to SCOTUS.
Many states do require sellers to collect sales tax at Flea Markets and Garage Sales if they pass a certain threshold of sales volume. I was reading in another thread today that someone spoke with California tax commission and got a solid answer about it. In CA you don't have to charge sales tax if you are a seller and do less than $500K in sales. However, if you are a facilitator or marketplace like eBay, then it is combined for the sales that happen on your platform. So eBay essentially will have more than $500K in sales to CA buyers, so they are required to collect the sales tax. It would be easier for eBay to refund the buyer some tax money if they ended up not having to collect it than it would be for eBay to try and ask all the buyers to re-pay the taxes since they passed the threshold.
Thank you. I'm aware. Sorry if I gave you the impression I didn't understand.
Taxes are one thing but what really bothers me is that eBay has decided to collect sales tax on the shipping.
Ebay didn't decide to do this. It is dependent upon the requirements of each state. So if you are being charges sales tax on S&H, it would be because Ebay is required to do that by law. If this is of concern to you, you need to get in touch with your state legislator and voice your concerns to them.
Shipping is not taxed in most, if any, state, but "handling" is. If they are is a combined shipping and handling charges most states will tax that. eBay has decide on its own to tax all shipping charges even though they have the ability to separate shipping and handling charges.
I don't know that to be true. I can't say I know the laws of every state. I can speak to the laws in my state and if the S&H is on the same invoice as the product purchased, it is then taxable. If it is separately billed like from a trucking company to deliver something from a vendor, then it isn't taxable. But if it is on the same invoice as the product being purchased, it is taxable.
I think you are assuming that Ebay has done something that they haven't done in an effort to make Ebay appear to be doing something dishonest. When it is a matter of updating yourself on the laws of each state. Maybe this link will help. All I did was Google the question and I got the answer.
https://blog.taxjar.com/sales-tax-and-shipping/
According to this link, almost 30 states charge sales tax on S&H and that was as of 2017. So those numbers may have changed in the last couple years. But if it interest you, you can Google it and find more recent info.
Before going and making allegations as serious as the ones you have made here, it is important to make sure you have the proper information.
