Tax information

[buyselltx]

I know ebay is paying our tax on our behalf, however when is that being done?  End of year, quarterly?  My tax administration hasn't received anything.

[dhbookds]

wouldn't that depend on the laws of each state?.........

[corvettestainless]

Your tax administrator will NEVER receive anything. The term 'on our behalf' is probably wrong. By state law, the 'facilitator' (ebay) has to collect and remit the tax as in the eyes of the state for these 'sales tax' purposes, ebay is the seller. 

[the*dog*ate*my*tablecloth]

eBay is not the seller, eBay is the marketplace facilitator that collects on behalf of the sellers. Read the laws, it’s pretty clear.

[mam98031]

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@buyselltx wrote:

I know ebay is paying our tax on our behalf, however when is that being done?  End of year, quarterly?  My tax administration hasn't received anything.

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Ebay is not paying taxes on your behalf except to the state in which you reside in or do business from for sales you ship to a customer within your state.  

For states other than the one you are doing business from, those taxes don't affect your state or your state returns you need to be filing.  

Just keep good records and you will be fine.  Check the requirements for YOUR state in how you need to report your in state sales.  This could vary by state, so make sure you keep good records and you know your reporting requirements for your state.

When you say "tax administrator" are you talking about your state?  Ebay's reporting requirements are between the individual states and Ebay.  It isn't likely to be monthly, but could be quarterly, bi yearly or yearly.  Depends on what your specific state requires.  

[eleanor*rigby]

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@buyselltx wrote:

I know ebay is paying our tax on our behalf, however when is that being done?  End of year, quarterly?  My tax administration hasn't received anything.

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The sales taxes collected from your buyers will be submitted to THEIR states, not yours. If you sold to anyone in your state, those taxes will, of course, be submitted to Texas.

Texas' marketplace facilitator law just went into affect on October 1, 2019. That's THIS quarter. If eBay is submitting sales tax receipts quarterly, they won't even be due until AFTER December 31. 

eBay has not made any kind of statement as to whether they'll be submitting sales tax results monthly, quarterly or annually, but we know for sure it's not gonna be daily or weekly.

Anyway, how do you know your "tax administration" hasn't received anything yet? Does your Comptroller's Office divulge when other taxpayers submit their tax obligations?

[eleanor*rigby]

@mam98031 

Cross-posted.

[mam98031]

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@eleanor*rigby wrote:

@mam98031 

Cross-posted.

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Got to love cyberspace!!!  

[corvettestainless]

@the*dog*ate*my*tablecloth  eBay is not the seller, eBay is the marketplace facilitator that collects on behalf of the sellers. Read the laws, it’s pretty clear.

I understand that, but I was just trying to simplify. In this case, for sales tax, ebay is collecting, ebay is filing and ebay is submitting the Dollars. For all intents and purposes-EBAY IS THE SELLER.

Potato Potado. Geez, people just have to complicate the simplest things sometimes. 

[ed8108]

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@corvettestainless wrote:

@the*dog*ate*my*tablecloth  eBay is not the seller, eBay is the marketplace facilitator that collects on behalf of the sellers. Read the laws, it’s pretty clear.

I understand that, but I was just trying to simplify. In this case, for sales tax, ebay is collecting, ebay is filing and ebay is submitting the Dollars. For all intents and purposes-EBAY IS THE SELLER.

Potato Potado. Geez, people just have to complicate the simplest things sometimes. 

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Law is nothing but techanalities.

[mallarddown]

So, we need to continue to pay sales tax from sales to buyers from our own states, but other states sales tax will be collected and submitted by ebay?  

[mam98031]

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@mallarddown wrote:

So, we need to continue to pay sales tax from sales to buyers from our own states, but other states sales tax will be collected and submitted by ebay?  

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@mallarddown 

NO.  If you are in a state with a MFL, you will be blocked by Ebay from being able to collect sales tax and Ebay will do it.

You are in a state that passed an MFL as of 1/1/19.  So for the entire year of 2019 you did not collect sales tax from your buyers, but Ebay did and Ebay has remitted it to your state.

You should read this link closely and maybe a few times.  It will help you to better understand.

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

[mam98031]

@mallarddown 

I forgot to mention.  You need to check with your state on how you are suppose to report your in state sales.  Each state has their own rules.  It is likely you need to report the sales but that Ebay has collected and remitted the actual tax.  But make sure you check for your state's requirements on how you report these sales.