Sales/Use Tax

[egarchow89]

So just in the past couple of days, I as a buyer have been charged sales(use?) tax for purchases I've made on eBay. I also sell. Previously, I've been separately tracking sales I've made as a seller within my own state, and paying sales tax on those. Now that eBay is collecting this tax on me (and for me, apparently?), can I skip this separate tracking? If I don't it seems like the tax would be paid twice for in-state purchases (once when ebay collects the tax on the buyer, and then once when I mail in the check each year).

[brightpennies]

I know. I'm so stressed right now about this. i notice buyers have been overpaying. i looked at a sale today...it showed OUT OF STATE buyer PAID ME .65 cents in sales tax. oh great. what am i suppossed to do with that? send it back? if i have to do that for every sale, it will take hours which means selling becomes less worth it. should i send the 65 cents to the buyers state tax office? will there be black suvs opening fire on my house if i dont figure this out? why is the tax so much? I DONT EVEN MAKE THAT MUCH PROFIT ON SOME SALES so why are they taking such a big cut? where does it go?

[tealt]

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@brightpennies wrote:
I know. I'm so stressed right now about this. i notice buyers have been overpaying. i looked at a sale today...it showed OUT OF STATE buyer PAID ME .65 cents in sales tax. oh great. what am i suppossed to do with that? send it back? if i have to do that for every sale, it will take hours which means selling becomes less worth it. should i send the 65 cents to the buyers state tax office? will there be black suvs opening fire on my house if i dont figure this out? why is the tax so much? I DONT EVEN MAKE THAT MUCH PROFIT ON SOME SALES so why are they taking such a big cut? where does it go?

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You don't have to do anything with the 65 cents.  You don't have it.

The 65 cents will appear on your buyer's invoice,  but the money will *not* be in your eBay or Paypal (or Managed Payments, if you are in that program) account.

Since your buyer lives in a state that has passed a Marketplace Facilitator law, EBay is required to charge your buyer sales tax, take that sales tax, and remit it to the buyer's state.

[mam98031]

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@brightpennies wrote:
I know. I'm so stressed right now about this. i notice buyers have been overpaying. i looked at a sale today...it showed OUT OF STATE buyer PAID ME .65 cents in sales tax. oh great. what am i suppossed to do with that? send it back? if i have to do that for every sale, it will take hours which means selling becomes less worth it. should i send the 65 cents to the buyers state tax office? will there be black suvs opening fire on my house if i dont figure this out? why is the tax so much? I DONT EVEN MAKE THAT MUCH PROFIT ON SOME SALES so why are they taking such a big cut? where does it go?

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@brightpennies 

Ebay sent out an email in October to sellers and put an announcement on the announcement board that may help you to better understand what is going on.

On October 1st, we announced changes to the way taxable transactions are processed and how taxes are collected for remittance, and those changes are now live. 

Starting now, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:

• In states where eBay is required to collect Internet Sales Tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.
• Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.
• A record of the sales tax portion of the order will be available on the Seller Hub Order details page and through our Download order report.

Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action.

We understand that the holiday selling season is nearly upon us and we are working to make this transition as smooth as possible.

Learn more about Internet Sales Tax in the eBay Seller Center. If you have questions about how Internet Sales Tax may affect you, we recommend consulting with your tax advisor.

Note: These changes do not apply to sellers currently enrolled in managed payments.

 As always, thank you for selling on eBay.

https://community.ebay.com/t5/Announcements/NOW-LIVE-New-Internet-Sales-Tax-changes-that-impact-you/...