New state sales tax ruling

[vssoutlet]

A ruling has just come down from the Supreme Court that states are entitled to collect sales tax on internet sales. Amazon already collects and remits on behalf of it’s 3rd party vendors. For small sellers, collecting and remitting to potentially thousands of municipalities would be impossible. Since eBay is trying to be like amazon in most other respects, will they provide a collection and remittance solution to keep its sellers in business?

[tyler@ebay]

Hi @vssoutlet  - we have a statement about today's decision here.

The Court’s decision is focused on large retailers who engage in a significant quantity of business in a state, and the retailers involved in the case are large, national companies. In other words, it remains to be seen what today’s ruling may mean for small businesses. 

As a next step, we are calling on Congress to step in and provide clear tax rules, with a strong small business exemption, to help small businesses take advantage of the Internet to grow and create local jobs.

[femmefan1946]

tyler@ebay

EBay Canada sellers would probably appreciate it if you cross-posted there.

[tyler@ebay]

Thanks @femmefan1946! I'll hop over and get something posted. 🙂

[vssoutlet]

The court’s decision did not specifically address businesses of a certain size. They were more focused on the states that currently had “simplified” rules. This isn’t helpful for the small eBay seller. Me and my fellow small to medium size sellers fully expect eBay to build a solution for sales tax collection and remittance similar to Amazons. Since eBay seems to be committed to becoming a third-rate Amazon clone, I expect them to go all the way and not leave small sellers with a business that is no longer viable. 

[poookie111]

How small exactly is a small seller?

[vssoutlet]

That’s the million dollar question. It’s undefined. This ruling opens the door for states to create their own rules. I just want to know if eBay is working on a solution or if they are simply expecting every seller to deal with it themselves.

[fastwhitetaurus]

I dunno.  As an occasional seller I hope they have something clearcut but if I have to hire a CPA to sell a nickel dime item here or there,  I be gone!  

[ten_o_nine]

I think it applies to businesses with over 2 million in annual revenue.

[vssoutlet]

No guidance yet. It’s goijg to be a complicated free-for-all unless Congress comes up with legislation. We also need eBay to come up with a platform-based solution.

[phono_0490xxxxxx]

tyler@ebay

I hope you are aware that petitions are useless and you would do better by advising members of far more effective ways they 'voice their conserns'. 

People do this and think they have done their bit, and then do nothing more.

The one click on-line petition is slacktavism.

A key element in a worthy valid submission is to answer this question >  How does this affect me?

[dirk12955]

---

@poookie111 wrote:

How small exactly is a small seller?

---

Off the subject,  Sort of.   

I seem to recall that the IRS does not require PAYPAL to report an ebay sellers sales until the seller reaches 200 sales AND $20,000.00

Anyway,   I'm ASSUMING that there will be a level at which small sellers will be exempt from collecting sales tax.  

[time4david5d28]

This ruling is not confrming the IRS's online retailer guidelines that requires 200 individual sales AND $20,000 in gross to be considered a business.   The ruling allows States to collect sales tax on 'businesses' if they choose the do so.  This means to me that each State can define what a "Business" is that should report.   For instance some states require 200 individual sales OR $20,000 in gross, contrary to Federal IRS reporting guidelines.   

So the question is for EBay . . . . are they going to use the IRS's reporting guidelines . . . or are they going to investigate every 50 states and their independent counties and municipalities to determine tax rates in order to create a data base to add such tax to items?    The problem again is what does EBAY consider a Business?    I am an INDIVIDUAL selling items on ebay.  I am not a Business.  Thereofore, just because I am selling items on ebay, I should not be automatically in an EBAY designed system to add sales tax.   There should be an OPT OUT or OPT IN scenario.  Not a requirement to add sales tax to items.

[kolekts]

Anyone in the states of Delaware, Montana, Oregon and New Hampshire do not have to worry about this. They have no state sales tax - as do some municipalities in Alaska. 

[the*dog*ate*my*tablecloth]

eBay will follow whatever the states require. In PA it’s 10k.

if you are buying for resale you are a business.