Why do *I* pay the buyer's state tax? I'm already paying all the other fees... Can I claim on taxes?

[rock.star]

Buyers pay the sales tax not sellers.

[skeletonstore]

Buyers pay it but paypal reports the gross amount to the IRS so you need to claim it on your taxes.  I believe this started Nov 2019. 

[usmediamass]

Ebay adds the sales tax on top of your sale.  However, when the is a refund issued they refund the buyer from your account and only give you some of the money back.  ebay is keeping money for sales tax when no sales tax is being paid.  

https://community.ebay.com/t5/Shipping-Returns/Sales-Tax-Refund-rip-off/td-p/30531583

https://community.ebay.com/t5/Shipping-Returns/Refund-discrepancy-Ebay-vs-Paypal/td-p/30657242

[goldxxxsilver]

I understand your Question I Think?...Every Sale this year with Tax Collected 2020 I am Keeping Track of that Sales Tax Collected Amount on each Individual Sale as it appears to be part of your sale....UP to You to Deduct that Tax Amount if you Claim at the end of the year...Yes it should be a Deduction...Happy Selling...Good Luck to All  ...😀😀

[boatpartsjoplinmo]

So are sellers paying Ebay and Paypal fees on the Sales tax since we pay on the full amount? 

[nuclearomen · Accepted solution]

you don't pay the tax, it's shown on the total but it's a separate charge to the buyer. Paypal collects the tax and it will included on your 1099 but you should be deducting that amount of tax from your total reported earnings. 

[corvettestainless]

PP fees, yes, Ebay- no. 

[goldxxxsilver]

That is Correct...That is my Understanding also!!!

[cmdancer71]

I would've responded sooner, but I didn't see that I got replies until a few moments ago. I'm seeing on PayPal in my eBay transactions that they are, in fact, deducting the buyer's state taxes from the total amount I receive. I went through every transaction this year and lots of them were taxed. I thought the Supreme Court ruling was the buyer's pay the tax, not the seller. Or is it both the buyer AND the seller? Thanks for your response!

[kensgiftshop]

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@cmdancer71 wrote:
I'm seeing on PayPal in my eBay transactions that they are, in fact, deducting the buyer's state taxes from the total amount I receive.

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Yes, but you'll also notice where the buyer paid the extra for the sales tax.

[cmdancer71]

So both the buyer and seller pay?

[cmdancer71]

Thank you to everyone who has responded. I didn't see all the responses until just a few minutes ago.

[cmdancer71]

Thank you! Happy selling to you, too!

[bigwheelerdealer]

We are paying paypal fees on that tax which is not fair