Taxes

[cherrysparkle]

I have sold on eBay for 20 years, but stepped aside for a short period of time due to a family concern. Now that I am back, I need to know what TEXAS sales tax I need to charge buyers on #ebay. I sell primarily Vintage garments and some small Vtg decorations. I looked up different tax studies, but none of it made sense. If anyone knows, I appreciate the information. Thanks! / Jane

[eunster1313]

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@cherrysparkle wrote:

I have sold on eBay for 20 years, but stepped aside for a short period of time due to a family concern. Now that I am back, I need to know what TEXAS sales tax I need to charge buyers on #ebay. I sell primarily Vintage garments and some small Vtg decorations. I looked up different tax studies, but none of it made sense. If anyone knows, I appreciate the information. Thanks! / Jane

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None. eBay collects the sales tax for all buyers now when they pay.

[msmaggie060 · Accepted solution]

You don’t need to do anything about the taxes. EBay looks after the sales tax and it doesn’t matter where you are located (Texas?) the tax depends on the state that the item is mailed to. If you are selling internationally eBay will look after charging any VAT as well. 

[toysaver]

Ebay will collect and remit sales tax where applicable for whichever state your buyer lives in.  You will also have the honor of giving eBay a fee of about 12.5% of that tax amount for their trouble.

[slippinjimmy]

@cherrysparkle 

Confirming what @eunster1313 said.

One thing you might need to check on IF your are registered to collect TX Sales Tax is that you may still have to report the sales and show that taxes were collected and remitted by a third-party (eBay).

Every State handles this differently so you would need to check with these people:

https://comptroller.texas.gov/taxes/sales/marketplace-providers-sellers.php

[soh.maryl]

Good news for you:  eBay will charge your buyers the correct sales tax for their shipping location and eBay will be responsible for remitting those funds to the appropriate department of the state.

Not so great news:  Your final value fee as a seller will be based on the state sales tax as well as the item price and shipping cost.

Also, just to clarify, the state sales tax will be based on the  BUYER'S delivery address, not on your address.  I gather you are in Texas.  

[simply-the-best-for-you]

I will echo what @slippinjimmy  said.  If you are registered with your state, you may still have to FILE a 0 balance return for sales tax.  It depends on your state, mine requires it.   But eBay now handles the collection of the taxes via the Marketplace Facilitator laws.  That's the term to look up, if you want to read up on it.