TAX

[empco-inc]

Hello everyone,

Long story short, I took on a new duty at work. The last person that ran the ebay sales retired and no one else knows how it works. I know how to run ebay as if it was just selling things around the house ( garage sale items, no profit). But now the companies items are for profit, so sales tax is applicable.

Ive gotten so many different answers about tax with ebay ( online forums and ebay help pages) , and its frustrating.

Questions:

1.) When I sell something on ebay, do I have to pay the sales tax to the buyers state? or does ebay report and pay the sales tax to the buyers state for me?

2.) I see on the New Listing page it gives you and option for a state, and % of tax. Wouldn't that not work because almost every buyers location is different, so sales tax would change?

I understand at the end of the year all the income from sales is subject to income tax.

I want to help my company out, But just need some info to get things straight.

Also tips on how you go about paying the states( thats if you have to from my above question).

[nobody*s_perfect · Accepted solution]

Good news!  eBay automatically collect the sales tax and sends it to the buyer's state. You can just ignore the listing form references to sales tax.

"now the companies items are for profit, so sales tax is applicable."

This is a misperception. Any item that is sold on eBay is subject to the laws of the state that the item is shipped to.  If you have been selling on eBay recently on your own account, your buyers were charged the sales tax relevant to their state.

[klhmdg]

eBay collects and pays the tax on sales to the state the item ships to.

Market Place Facilitator taxes.

There is no difference any more on just selling stuff around the house and a business any more.

[alcoforever]

If you are in any state except Missouri, ebay will collect and remit sales taxes automatically.   You need do nothing.

If you are in MO, you will activate the ebay sales tax table for MO and, using your employers retail tax number, collect and remit taxes to the state of Missouri for sales you ship to a MO address.   Sales tax for all other states will be collected and remitted by ebay automatically.

[soh.maryl]

3) When a sale is made, eBay sees the buyer's shipping location and, according to information they have obtained from that state, charges the correct amount of state sales tax to that buyer and then remits that payment to the involved state.

Reminder:  eBay's final value fees will be charged to the seller based on the item's price, the shipping fee and the STATE SALES TAX, if any.  

[caldreamer]

EBAY collects sales tax from customers and send money directly to the States.   Even though you won't owe any "sales tax" you still need to file "sales tax" return with your State Tax Board (show EBAY as facilitator).    

Your corporation should hire CPA to guide you on bookkeeping procedures and tax liability.   It can be very intimidating the first time.

[donsdetour]

Tax is eBay's problem and they send it to the states etc; as has already been stated.

Also check with your state as well: reporting such taxes is still required in some states....

Added at a fast look at listings...

Now book keeping and eBay on sales with be a bit of a problem.

Fees are on the total sale of an item. and the .30 cents on top of that...

Item cost, shipping and tax is where the fee is applied. So if a listing is even making your cost: you should do a book keeping on all of this for individual items for a time: and find out were it cost you more to list  and sell than you are making.

[a1strateacct]

I am in MO.  Sounds like you know a thing or two.  🙂 

I'm having trouble finding a YTD report for 2021 that shows my sales.  Would you mind directing me on how to run that report?

Thank you, 

Wendy