eBay

autopiacarcare · ‎01-03-2019

We know that eBay has said starting January 1, they will be collecting and remitting sales tax for WA and MN. We have not yet had a sale to either of these states this year, but have noticed a difference between our listings and other sellers listings.

Our listings still show in the sales tax tab "Seller charges sales tax in multiple states" with "multiple states" being a link that takes you to the tax rate table as we had previously set it up, which shows WA at 8.76% and nothing for MN. (Listing ID 253474630872 for example)

However, if we look at another seller's listing for the same item (253975812991), they show " FL*(7.0%), MN*, WA*."

@Anonymousor one of the other blues, can you let us know if this is a glitch or if there is something we need to do to update our listings so eBay will be properly collecting and remitting tax for WA and MN?

autopiacarcare · ‎01-04-2019

After doing some more digging, we have more information. Hopefully this may help others who are looking for answers as well.

First, the good news. We had a sale to WA today. On the sales record page, it shows $0.00 under tax with an * that leads to a note at the bottom that says "eBay collected sales tax from your buyer.” If we pull a "Paid and Shipped" report from File Exchange, under the Sales Tax column for that transaction it says $1.44 which would be 9% and the correct amount for the buyer's address according to https://www.taxjar.com/sales-tax-calculator/ . So, as far as the actual tax collection, as far as we can tell everything is working correctly.

However, we still have this issue where the tax rate table on our listings doesn't accurately reflect the change for WA and MN. I did test to see what would happen if we just deleted the number we had input for WA. The result was that with nothing in that box, WA just didn't show on the list at all, just like any other state that isn't set up in the tax rate table. That is the reason MN doesn't show as well, because we don't currently directly collect and remit for MN, it is blank in our tax rate table.

So I do still need one of the blues to look into this issue. My first thought is that since our account was affected by the issue a few months ago where they released the WA tax setting early, maybe the "fix" for that problem has inadvertently caused the new settings not to override our tax table settings?

Anonymous · ‎01-04-2019

@lacemaker3 wrote:

Hi @autopiacarcare, that's understandable.

It looks to me like eBay is calculating the Wshington state sales tax correctly according to the buyer's location (10%), not according to your sales tax table which would have been 8.76%. I think they're doing it right.

I don't think eBay will go in and change your sales tax table, but eBay blues have said that it will not be possible for a buyer to be double-charged for the sales tax. You could probably take Washington out of your sales tax table, and that might fix the display. Or it might continue to say "Multiple states" since you do have a lot of different states on there.

Hi @lacemaker3, I have sent this example to the appropriate teams for review and am working on getting more information for the specific questions posed here not covered by our Help Page or the recent announcements. Thank you for providing some great screenshots and your patience while we work on clearing up any confusion!

lacemaker3 · ‎01-04-2019

Thanks, @Anonymous, I'm just trying to help out, as this sales tax change is getting some people hot under the collar (not in this thread, but some others I have posted in).

Some additional info that may be related to this tax table display issue. I noticed that the eBay shipping supplies seller doesn't have a tax table visible, their listings only show the note about "tax may be charged for Washington and Minnesota" (paraphrased). However, there was a post today about someone who was being charged sales tax for Texas (incorrect rate, according to the poster) and when I checked a potential purchase to MIchigan, it was also charging sales tax (correct rate, in that case). So they have the opposite problem: no tax table displaying at all, but they are charging sales tax which should be against eBay policy as well as against the law (charging tax without advance notice).

I would still like to get some info about this issue:

Also, how is eBay determining which sellers to collect sales tax for, on Minnesota purchases? I assume that you will only be able to take into account sales that occur on eBay, but how is the seller to know how much has been collected on their sales, because the eBay sales may put their overall total sales over the limit which requires them to collect and remit sales to MInnesota?

lacemaker3 · ‎01-04-2019

@Anonymous, here is the thread reporting that the eBay shipping supplies seller's listings are not collecting or displaying sales tax correctly.

https://community.ebay.com/t5/Selling/Texas-sales-tax-being-charged-on-eBay-shipping-supplies/m-p/29348608

talalden · ‎01-04-2019

So, I live in Washington state and can say it’s NOT the 8.73% or what ever. They are charging the highest blanket rate, which is Seattle, of 10.5%. My tax rate where I live is 9% locally.

they are charging it on EVERYTHING, including non taxable items. I found this out when I went to buy a few historical newspapers and other items that are taxable. My purchase would of been $83 including the shipping, and tax was $8.72.

i called eBay, they blamed the seller at first, then the state. I called my dept of revenue and they said if I’m being charged tax, it is because eBay is charging a blanket tax on everything sold. I called eBay back and they said basically “oh well.” This after I again explained that as of Jan 1st, eBay is doing this. They didn’t even know their own policy.

A seller lost a sale because of this.

lacemaker3 · ‎01-04-2019

@talalden wrote:
So, I live in Washington state and can say it’s NOT the 8.73% or what ever. They are charging the highest blanket rate, which is Seattle, of 10.5%. My tax rate where I live is 9% locally.

they are charging it on EVERYTHING, including non taxable items. I found this out when I went to buy a few historical newspapers and other items that are taxable. My purchase would of been $83 including the shipping, and tax was $8.72.

i called eBay, they blamed the seller at first, then the state. I called my dept of revenue and they said if I’m being charged tax, it is because eBay is charging a blanket tax on everything sold. I called eBay back and they said basically “oh well.” This after I again explained that as of Jan 1st, eBay is doing this. They didn’t even know their own policy.

A seller lost a sale because of this.

@Anonymous, can you check why this member is apparently being charged an incorrect sales tax rate for a purchase to Washington?

I know that they aren't charging the same sales tax rate everywhere, because I have seen a different rate charged to a different address in Washington (in my earlier post on this thread).

talalden · ‎01-04-2019

I was just thinking about that. My zip code is shared with part of Seattle, but was annexed into a different city. so I’m wondering if it’s going off that. Because if I go to my corner store, I don’t pay 10.5%.

state is 6.5% base. Then there is the county and city taxes.

But doesn’t explain the taxes on newspapers.

Anonymous · ‎01-04-2019

@lacemaker3 wrote:

Thanks, @Anonymous, I'm just trying to help out, as this sales tax change is getting some people hot under the collar (not in this thread, but some others I have posted in).

Some additional info that may be related to this tax table display issue. I noticed that the eBay shipping supplies seller doesn't have a tax table visible, their listings only show the note about "tax may be charged for Washington and Minnesota" (paraphrased). However, there was a post today about someone who was being charged sales tax for Texas (incorrect rate, according to the poster) and when I checked a potential purchase to MIchigan, it was also charging sales tax (correct rate, in that case). So they have the opposite problem: no tax table displaying at all, but they are charging sales tax which should be against eBay policy as well as against the law (charging tax without advance notice).

I would still like to get some info about this issue:

Also, how is eBay determining which sellers to collect sales tax for, on Minnesota purchases? I assume that you will only be able to take into account sales that occur on eBay, but how is the seller to know how much has been collected on their sales, because the eBay sales may put their overall total sales over the limit which requires them to collect and remit sales to MInnesota?

Edit: to avoid any confusion this post has been edited, please see next response from myself for corrected informaton.

lacemaker3 · ‎01-04-2019

@Anonymous wrote:
@lacemaker3 wrote:
...
I would still like to get some info about this issue:

Also, how is eBay determining which sellers to collect sales tax for, on Minnesota purchases? I assume that you will only be able to take into account sales that occur on eBay, but how is the seller to know how much has been collected on their sales, because the eBay sales may put their overall total sales over the limit which requires them to collect and remit sales to MInnesota?
Hi @lacemaker3, regardless of a seller's potential eligibility for exemptions eBay will collect sales tax for all purchases and remit this to the state. A seller can request credits they may qualify for, however, we will not be making adjustments based on the seller's business size. Not only would this be difficult to calculate and predict for throughout the year, but a seller very reasonably could be doing additional business in that state that would put them over the limit.
...

@Anonymous, that seems to contradict what it says on the help page:

"Small business exemption - Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions."

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

lacemaker3 · ‎01-04-2019

@Anonymous wrote:
@lacemaker3 wrote:
...
...

As for the example you have provided, have you seen any reports of this with a seller that accepts PayPal? Our Shipping Supply Store is a part of eBay Managed Payments and I want to determine if the lack of a displayed Tax Table is limited to those within Managed Payments.

Additionally, I waned to inform you that we are are working on updates to the Tax Table feature that will leave the Washington and Minnesota fields blank, with the appropriate tax amount being displayed at checkout. The industry standard is that tax is shown at checkout, both online and in physical stores, so this should not be an issue nor a cause for concern.

I'm sorry, but I haven't run into very many sellers that are using Managed Payments, other than the shipping supplies seller. @autopiacarcare, who started this thread, accepts PayPal IIRC and he has a different issue with the tax table being displayed incorrectly.

That will be good to have the tax table corrected. Since eBay is charging the correct sales tax rate by the buyer's shipping location, it would be difficult if not impossible to show all the rates in a tax table. The tax table has always been overly simplistic, and did not allow correct sales tax calculation or collection in some states.

Is the assumption correct that eBay is including states in their roll-out plan for collecting sales tax for the states which have Marketplace sales tax laws? If that is so, then why isn't New York included, because I seem to recall that New York has a Marketplace sales tax law?

Anonymous · ‎01-04-2019

@lacemaker3 wrote:

@Anonymous wrote:

@lacemaker3 wrote:
...

I would still like to get some info about this issue:

Also, how is eBay determining which sellers to collect sales tax for, on Minnesota purchases? I assume that you will only be able to take into account sales that occur on eBay, but how is the seller to know how much has been collected on their sales, because the eBay sales may put their overall total sales over the limit which requires them to collect and remit sales to MInnesota?

Hi @lacemaker3, regardless of a seller's potential eligibility for exemptions eBay will collect sales tax for all purchases and remit this to the state. A seller can request credits they may qualify for, however, we will not be making adjustments based on the seller's business size. Not only would this be difficult to calculate and predict for throughout the year, but a seller very reasonably could be doing additional business in that state that would put them over the limit.
...

@Anonymous, that seems to contradict what it says on the help page:

"Small business exemption - Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions."

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

Hi @lacemaker3, thank you so much for this correction; I sincerely appreciate your help in this as my previous response did contain incorrect info. I've edited the post istelf to avoid any confusion for future readers, but have left your quote of the details so your response is understood by others.

To clarify, we would monitor a seller's sales to determine if they qualify for exemptions and will adjust accordingly. We are aware that reporting is needed for seller's review and are working on future improvements. While we are working to collect and remit taxes on the seller's behalf where we can determine this is required, a seller my need to make adjustments if they have revenue outside of eBay that puts them over this threshold. This is something on our radar and enhancements may come in the future to further support a seller's business.

Anonymous · ‎01-04-2019

@lacemaker3 wrote:

@Anonymous wrote:

@lacemaker3 wrote:
...

...

As for the example you have provided, have you seen any reports of this with a seller that accepts PayPal? Our Shipping Supply Store is a part of eBay Managed Payments and I want to determine if the lack of a displayed Tax Table is limited to those within Managed Payments.

Additionally, I waned to inform you that we are are working on updates to the Tax Table feature that will leave the Washington and Minnesota fields blank, with the appropriate tax amount being displayed at checkout. The industry standard is that tax is shown at checkout, both online and in physical stores, so this should not be an issue nor a cause for concern.

I'm sorry, but I haven't run into very many sellers that are using Managed Payments, other than the shipping supplies seller. @autopiacarcare, who started this thread, accepts PayPal IIRC and he has a different issue with the tax table being displayed incorrectly.

That will be good to have the tax table corrected. Since eBay is charging the correct sales tax rate by the buyer's shipping location, it would be difficult if not impossible to show all the rates in a tax table. The tax table has always been overly simplistic, and did not allow correct sales tax calculation or collection in some states.

Is the assumption correct that eBay is including states in their roll-out plan for collecting sales tax for the states which have Marketplace sales tax laws? If that is so, then why isn't New York included, because I seem to recall that New York has a Marketplace sales tax law?

Hi @lacemaker3, I will keep an eye out for other examples and ensure this is investigated properly for necessary adjustments. I can also confirm that eBay will work to comply with all necessary legislation regarding our marketplace's responsibility to collect and remit sales tax. As for New York, I recommend you check out our eBay Mainstreet page for information on the status of this proposed legislation. Any changes in the future would be communicated to sellers and reflected on our Help Page.

lacemaker3 · ‎01-04-2019

@Anonymous wrote:
@lacemaker3 wrote:
...
...

Hi @lacemaker3, thank you so much for this correction; I sincerely appreciate your help in this ...

No problem, @Anonymous. I think I have a small comprehension of how big and complex this project is, to collect sales tax for all the different locations and all the different nuances that each state has included in their legislation. It's very complex, and we are all just trying to comprehend it.

myjunqueyourtreasure · ‎01-04-2019

I was under the impression the collection and remittance of the USE Tax for certain states was based on ebay being the marketplace facilitator.
Individual seller's threshholds shouldn't really come into it, unless they also collect & remit SALES Tax for said state already, in which case they will require documentation from ebay of said taxes collected when they do their Sales tax reports.

Reality is the leading cause of stress.

lacemaker3 · ‎01-04-2019

@myjunqueyourtreasure wrote:
I was under the impression the collection and remittance of the USE Tax for certain states was based on ebay being the marketplace facilitator.
Individual seller's threshholds shouldn't really come into it, unless they also collect & remit SALES Tax for said state already, in which case they will require documentation from ebay of said taxes collected when they do their Sales tax reports.

@myjunqueyourtreasure, you are correct -- except for Minnesota.

As far as I know, Minnesota is the only state (so far) that has passed a Marketplace tax law which ALSO includes an exemption for small-volume remote sellers. The means that the Marketplaces are not required to collect Minnesota sales tax for remote sellers on their sites who meet the exemption.

As I said, it's complicated.

And, for all the ones I have investigated, the states are calling these "sales tax" laws, not use tax.

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4