Missouri sales tax turned on, but still not being collected.

[bassquakesbeattheblock]

We are supposed to collect sales tax per state regulations, but customers arn't properly bein charged for them.  The 'switch' for charging sales tax is turned on, yet no sales taxes are being collected for our state.   We are still obligated to remit them to the state regardless if eBay collects them from buyers for us - has anybody else had this issue?

[bonjourami]

You, as the seller, are not required to collect state taxes. The buyer pays their state tax when they make their purchase, and Ebay remits those taxes to the proper state.

[buyselljack2016]

@bassquakesbeattheblock 

Sales tax in most instances are collected by eBay, and remitted  for the location of delivery.

Are you making sales to buyers in your state that eBay is not collecting the sales tax for?  As seen in the next post not eBay job just yet

[luckythewinner]

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@bonjourami wrote:

You, as the seller, are not required to collect state taxes. The buyer pays their state tax when they make their purchase, and Ebay remits those taxes to the proper state.

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Missouri's Marketplace Facilitator law does not go into effect until January 2023.

[caldreamer]

Sales tax is based on "ship to address" not your address.

[redmodelt]

eBay collects and remits sales tax to which ever entity it is due for you.

Wouldn't you only be paying tax on items you buy even if from out of state?

Are you saying Missouri is collecting an income tax on the items you sell?

Customers are already being charged sales tax for their state if they have a sales tax by eBay when they buy from you, so what you would be doing is collecting the sale tax twice if I understand what you are trying to do. 

There will be a lot of people reading this that don't know how your tax system works so maybe a little background on that might help. 

[bassquakesbeattheblock]

Missouri requires us to collect sales tax on sales made to customers with a ‘ship to’ address in Missouri.   So far, even with the tax table set up and turned on, no taxes have been collected for these customers.  As per the photo, eBay says they will collect them for us, so we can remit them to the state. 

 

[bassquakesbeattheblock]

More details:  We aren’t worried about sales made in other states.  Missouri requires us to collect sales tax on sales made to customers with a ‘ship to’ address in Missouri.  

 

So far, even with the tax table set up and turned on, no taxes have been collected for these customers.  As per the photo, eBay says they will collect them for us, so we can remit them to the state. 

[bassquakesbeattheblock]

Two things for certain in life - death and taxes.  You can bet your last buck the state wants thier cut - whether eBay is helping us or not, as a registered LLC, we are responsible for collecting sales tax.  I guess we could just ignore the tax-less sales and hope they don’t notice, but I’d rather not take that chance. 

[fab_finds4u]

Do you have a Missouri sales tax certificate or reseller's license?

If you don't  you don't collect sales tax.

When you are selling on a marketplace like eBay then the marketplace facilitator law says that eBay collects and remits the sales tax. Beginning 1-1-23 eBay will collect the sales tax for Missouri whether or not you have a sales tax certificate/ resellers license.

[bassquakesbeattheblock]

Correct, we do have a sales tax certificate.  If eBay starts remitting taxes for us in January, that's a plus.  eBay would be one less venue we have to worry about collecting sales tax from ^.^

[albertabrightalberta]

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@bassquakesbeattheblock wrote:

So far, even with the tax table set up and turned on, no taxes have been collected for these customers.  As per the photo, eBay says they will collect them for us, so we can remit them to the state. 

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AFAIK, Ebay will collect them and ebay will remit them to the state.

[soh.maryl]

Just to remind you:  eBay does not collect income tax under any circumstances.

Your question about Missouri collecting an income tax may be confusing to the OP. 

[dhbookds]

As said the Marketplace facilitator law for Mo doesn't go into effect until 1/1/23...........so ebay would not be collecting sales tax under that mandate until then.

I don't know what the sales tax laws in Mo are now.........but I'm guessing collection would ONLY apply to sales within the state.......... so first question is...........how many of your sales have been delivered within Mo?  And have you checked those Mo sales "Order Details" to be sure tax is not being collected? 

In other words..........I'm thinking (perhaps incorrectly) that you are expecting the tax to be collected on ALL sales, as opposed to Mo sales only..........you need to check the present Mo laws and then check the specific sales (if there is a limitation).  IF anything is collected, it should show on those order detail and be paid to you.......and then you are responsible to pay the state.

[monica-sells · Accepted solution]

Here is another thread regarding this matter:

https://community.ebay.com/t5/Ask-a-Mentor/Missouri-state-or-local-sales-tax/td-p/33197524?lightbox-...

It sounds like you are trying to do the right things....missouri based buyers and you are based in missouri...no ebay collection until 2023....(they say) my guess is you are missing a step somewhere....

preferences maybe? If you have the switch enabled (per that screenshot in the link) then somewhere else, something is awry...maybe you can't use the tables in conjunction with ebay collecting as the nexus....

maybe the US based helpers on facebook can help you out.....

make sure (looking at order details) they are not collecting in-state sales tax for you.