Question about out of state sales tax when seller lives in Texas

[hj80]

I live in Texas and when set up the auction I entered Texas and sales tax for my state.  I am a little confused though if I set it up accurately for out of state.  I sold an item to someone in Missouri.  It did not charge them sales tax in the completed auction.  Was I supposed to do so?  I did not, so don't know if I set up auction incorrectly and need to  cover it or what I do to solve the issue of not having collected any tax?  Sorry, I sell items rarely, so just want to clarify if I am doing something wrong.

[luckythewinner · Accepted solution]

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@hj80 wrote:

I live in Texas and when set up the auction I entered Texas and sales tax for my state.  I am a little confused though if I set it up accurately for out of state.  I sold an item to someone in Missouri.  It did not charge them sales tax in the completed auction.  Was I supposed to do so?  I did not, so don't know if I set up auction incorrectly and need to  cover it or what I do to solve the issue of not having collected any tax?  Sorry, I sell items rarely, so just want to clarify if I am doing something wrong.

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eBay will charge and collect out-of-state sales taxes for most states. There is a list here: 

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

eBay will do this for Texas so that you do not have to. 

According to this page from the Missouri Department of Revenue, you do not have to collect sales tax if you are out of state and do not have a nexus in Texas: 

"Missouri cannot require out-of-state companies that do not have nexus or a "direct connection" with the state to collect and remit use tax. If an out-of -state seller does not collect use tax from the purchaser, the purchaser is responsible for remitting the use tax to Missouri."

https://dor.mo.gov/business/sales/

[releasethekraken_1]

eBay collects sales tax for most states, but not for Missouri. Were you going to collect the tax and then send it to the Missouri tax dept? If not, there's no need for you to do anything unless you do a large volume of sales with that state.

[nobody*s_perfect]

There is no issue. Neither you nor eBay is obligated to collect sales tax on the transaction with the buyer in Missouri.

https://blog.taxjar.com/marketplace-facilitator-explained/

[lacemaker3]

@hj80,

You don't collect sales tax on eBay sales, because since Oct 1, 2019, Texas has required eBay (as a Marketplace Provider) to collect sales tax on all items sold and delivered to Texas (and a total of 44 states). Even before that, you would only collect Texas sales tax for deliveries to Texas.

Missouri is one of the few states that don't have Marketplace Sales Tax laws, so eBay does not collect sales tax on sales to Missouri. Sellers who are based in or have nexus in Missouri are required to collect and remit sales tax for sales to Missouri, but not remote sellers. That is likely to change, as there is a proposed Marketplace Sales Tax law that would take effect Jan 1, 2022, as written.

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section3

[hj80]

Thanks to all of your for your replies.  They were all very helpful.  I thought it was most likely accurate that it was not charged from what I had read, but just wanted to make sure.   Sometimes the more you read the more confused you get.  Used to be so much simpler.  LOL

[soh.maryl]

The state sales tax that eBay collects, by law, from buyers is based on the BUYER'S location, not the seller's.