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Sales Tax Reporting?????

So if eBay is collecting sales tax and remitting it, will we still need to file a sales tax report in our state? I'm a little confused on how this will work and cannot find any information on it. Or I am missing the info somewhere.

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Sales Tax Reporting?????


@gatechick15 wrote:

So if eBay is collecting sales tax and remitting it, will we still need to file a sales tax report in our state? I'm a little confused on how this will work and cannot find any information on it. Or I am missing the info somewhere.


You will still likely need to report sales but how varies by state.  You will need to contact your state taxing authority to find out the correct reporting method.

Member of the Grumpy Old Man crew
Message 2 of 11
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Sales Tax Reporting?????

I can not speak for every state, but according to my state I must still file the return if even I have nothing to pay. My form has a column for taxable sales, and a separate column for non-taxable sales (i.e. out of state sales). Everything goes in the non-taxable. Because YOU do not owe the tax on these sales - eBay does.

Message 3 of 11
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Sales Tax Reporting?????


@gatechick15 wrote:

So if eBay is collecting sales tax and remitting it, will we still need to file a sales tax report in our state? I'm a little confused on how this will work and cannot find any information on it. Or I am missing the info somewhere.


 

It depends...

 

1) Do you have any brick&mortar sales in your state? 

 

If yes, then you will need to at least file a sales tax return for those sales.

 

2) Has your state put into effect a Marketplace Facilitator law?

 

If YES then...when did that law go into effect?

 

Unless the law went into effect on January 1, 2019, you will need to file for in-state sales tax for the months before the  Marketplace Facilitator law went into effect.

 

If NO... then you will need to file your sales tax return as usual.

 

3) Your state sales tax department should have all the information you need on their web page.

Message 4 of 11
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Sales Tax Reporting?????

It's not just B&M stores that may need to collect and remit taxes. I'm in a Marketplace Facilitator State but my website is a standalone so does not fall into the MF law. I still have to collect and remit taxes for sales in my State.

 

Message 5 of 11
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Sales Tax Reporting?????


@gatechick15 wrote:

So if eBay is collecting sales tax and remitting it, will we still need to file a sales tax report in our state? I'm a little confused on how this will work and cannot find any information on it. Or I am missing the info somewhere.


Do you want to reveal what State you are in?

 

In the past have you been registered to collect Sales Tax on sales within your State?

 

Do you have any sales that are not completed on a site which is a Marketplace Facilitator?

 

 

Message 6 of 11
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Sales Tax Reporting?????

I am in PA. I have a registered PA sales tax id and I have always filed my own sales tax in since I started collecting. eBay is the only place I sell.

Message 7 of 11
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Sales Tax Reporting?????

@gatechick15   In PA if you have a Tax ID you still need to file on the schedule they have you on BUT, you put no online sales in on Line 2 of the reporting form (that's the "IN" state shipment sales).  If you sell at a brick mortar store or other direct sales venue then you would collect and remit the Sales tax and then put the sold amount on Line 2.

Regards,
Mr. Lincoln - Community Mentor
Message 8 of 11
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Sales Tax Reporting?????

Excellent, thank you so much!!

 

Now would you happen to know, when eBay remits that sales tax, does the state credit that, to that particular individual so that they don't wonder why this person has a sales tax id but are not reporting sales?

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Sales Tax Reporting?????


@gatechick15 wrote:

Excellent, thank you so much!!

 

Now would you happen to know, when eBay remits that sales tax, does the state credit that, to that particular individual so that they don't wonder why this person has a sales tax id but are not reporting sales?


No they don't! This is why you need to continue to report your sales (and in some States the amount of tax that eBay paid on your sales). Your State will be tracking all the reported sales and will compare the total reported by all registered sellers in PA to the amount that eBay reports.

 

Sales Tax just like Income Tax works on an honour system when it comes to reporting but there is a paper trail which makes it possible to spot irregularities. If an audit is triggered the exact amounts and documentation can be requested from the parties involved (that would be you and eBay) to confirm that everyone is in compliance.

 

 

Message 10 of 11
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Sales Tax Reporting?????

Thank you!!

 

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