SALES TAX

[medalhut]

Ebay says that they are collecting the Sales Tax and remitting it to the proper tax authority.  I went by the Texas  State Comptroler  Office this morning.  They say that they did not know anything about eBay collecting the sales tax and no tax from Ebay has  been remitted to them!

When will ebay remit the tax?  The deadline for paying in Texas is 20 January.

[eleanor*rigby]

Well, I'm sure they don't pay it every day . . .

"In Texas, you will be required to file and remit sales tax either monthly, quarterly, or annually."

[slippinjimmy]

https://comptroller.texas.gov/taxes/sales/remote-sellers.php

Some flunky at the comptroller office isn't likely to know the specifics of a particular marketplace facilitators account and even if they did they won't be discussing it with you.

eBay does collect Sales Tax for Texas and has since October 1st.

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section3

[thevintagesilvershop]

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@medalhut wrote:

Ebay says that they are collecting the Sales Tax and remitting it to the proper tax authority.  I went by the Texas  State Comptroler  Office this morning.  They say that they did not know anything about eBay collecting the sales tax and no tax from Ebay has  been remitted to them!

When will ebay remit the tax?  The deadline for paying in Texas is 20 January.

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Whoever you talked to doesn't know what they are talking about.  This became law in Texas on 10/1/19:

https://www.avalara.com/us/en/blog/2019/05/marketplace-facilitators-to-collect-single-sales-tax-rate...

[upgradedendmills]

Why would anyone look for problems that don't exist?

[luckythewinner]

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@medalhut wrote:

Ebay says that they are collecting the Sales Tax and remitting it to the proper tax authority.  I went by the Texas  State Comptroler  Office this morning.  They say that they did not know anything about eBay collecting the sales tax and no tax from Ebay has  been remitted to them!

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eBay's remittances will not show up as being connected to your taxpayer ID. 

"For their part, a marketplace seller must furnish the provider with all information required to correctly collect and remit sales or use tax. A marketplace provider won’t be held liable for failure to collect and remit the proper amount of tax if it can prove the seller provided incorrect or insufficient information."

[the*dog*ate*my*tablecloth]

Since eBay is responsible for collecting the tax since October in texas, why worry? Just make sure you remit the sales tax through to September

[medalhut]

The problem most certainly does exist.  I called eBay and was told that they did not collect and remit sales tax???

Was told I have to call Paypal for info on this.  I called Paypal and was told that they did not collect and remit sales tax.  So now I am in the middle due to incompetence,

What do I do now?

[whatmorefabric]

You are not in the middle of anything.    It is not your responsibility to collect sales tax after October.    It is Ebay or Paypal and that is who they will come after.

It is written in the law that the market place facilitator is responsible,  not you.

[medalhut]

I was trying to make sure that Ebay had my tax i.d. number, etc.  They claimed to know nothing about this.  So I do not know if they will remit to the correct people.  Looks like I am going to have to pay the tax for Oct thru Dec.

[fern*wood]

Someone has the money since my buyers are paying it and I'm not getting it -- other than for a few seconds so it can be added to my gross income.

[medalhut]

EXACTLY!!!

[eleanor*rigby]

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@medalhut wrote:

I was trying to make sure that Ebay had my tax i.d. number, etc.  They claimed to know nothing about this.  So I do not know if they will remit to the correct people.  Looks like I am going to have to pay the tax for Oct thru Dec.

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No, you're not going to have to pay those taxes for October through December. Your buyers are being charged sales tax on each transaction. PayPal is charging you a fee on it and then funneling it back to eBay. eBay will then, on whatever scheduled basis they have arranged with each state, submit those sales tax receipts to each state.

Don't look for trouble where there isn't any. Don't ask questions of the newest clerk at the information desk at your Comptroller's Office. They SHOULD consider taxpayer information confidential, anyway. And don't call some customer service rep in the Philippines about sales tax.

Long-time sellers here in this thread are telling you what you need to do or not do. Believe them.

[eleanor*rigby]

And read this thread, too, while you're at it:

https://community.ebay.com/t5/Selling/Tax-information/m-p/30496266#M1522370

[myboardid]

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@fern*wood wrote:

Someone has the money since my buyers are paying it and I'm not getting it -- other than for a few seconds so it can be added to my gross income.

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No, it is NOT added to your gross income.  It passes through your Paypal account.  The 1099 form that Paypal sends out does NOT reflect your income at all, it only reflects the money that is deposited in your account.  Those are NOT the same thing.