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Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?

This totally messes up my bookkeeping. Now I have to do the math to figure what the tax is and change my spreadsheet formulas. Either leave the tax out of the

Sales Totals or include it in Selling Costs.  Does eBay even have a QA team? Or do you just use your sellers as the crash-test-dummies?

Message 1 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?

The latter
Message 2 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?

So accounting practices should go out the window to make it easier for some users who do not have accounting experience? 

 

A "Selling Cost" is an expense you pay as a business that is generally deductible to you. So why would they include an "expense" in there that is in fact not tax deductible and is not an expense you incurred? 

 

In the world of Accounting, every penny must be accounted for and go somewhere. They can't just leave numbers out because they don't apply to a scenario. Most CPA's are going to want ALL of the information and would be very upset if eBay just left out some of the numbers. 

 

If you are having issues keeping your books, I would look into a book keeper or at least see if you can pay one a one time fee for consultation on how to best handle these reports since the new law change. 

Message 3 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?

@happygoluckytoysinc , Fyi, I have plenty of accounting experience. In order to keep good records, you need good data to source from. eBay is not giving us that data when it comes to how much tax they charge our customers. 

Message 4 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?

You may have missed this email from Ebay.  There was also another from PP.  If you need the PP one, just ask.

 

As you may be aware, 11 new states have adopted Internet Sales Tax policies as of October 1, bringing the total to 34 states that now require the collection of sales tax. As the impact of this tax law becomes more apparent, PayPal and eBay are making changes that will make Internet Sales Tax collection less complex for buyers and for you.

Starting in November 2019, 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, or our partners Avalara and TaxJar.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 5 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?


@rockusone wrote:

This totally messes up my bookkeeping. Now I have to do the math to figure what the tax is and change my spreadsheet formulas. Either leave the tax out of the

Sales Totals or include it in Selling Costs.  Does eBay even have a QA team? Or do you just use your sellers as the crash-test-dummies?


@rockusone  - In Seller Hub you can select a group of orders and download a report that shows the tax amounts, either seller collected or eBay collected.  It only goes back a maximum of 90 days, so it is limited if you need anything further back than that, but hopefully this will help you at least going forward.

 

Go to Manage Orders and select your date range, check the boxes next to the orders you want in the report or the checkbox at the top to select them all, and then click "download report".

 

report 1.jpg

 

 

You can then open that report in Excel and it has all the order info, including the tax amount and whether it was collected by seller or by eBay.

 

report 2.jpg

 

I know it's not perfect, but hopefully that will make the math a little easier to deal with.

Message 6 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?


@rockusone wrote:

@happygoluckytoysinc , Fyi, I have plenty of accounting experience. In order to keep good records, you need good data to source from. eBay is not giving us that data when it comes to how much tax they charge our customers. 


@autopiacarcare is correct. You can download this data and have it for reporting. It may not be displayed on the HTML pages. I would hope they would do that in the future. 

Message 7 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?

I downloaded that report to see what it would like since I don't have Excel ... it was a total unreadable mess! LOL.

 

I don't really need it right now but thought I'd get a handle on what it would be like in future if I do need it. Can't use what I was given.

Message 8 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?


@readabouthorses wrote:

I downloaded that report to see what it would like since I don't have Excel ... it was a total unreadable mess! LOL.

 

I don't really need it right now but thought I'd get a handle on what it would be like in future if I do need it. Can't use what I was given.


I know it's a bit of a pain if you don't have the right programs.  Unfortunately, it's the only way eBay is currently providing that data right now, short of just looking at the totals for each sale and doing the math yourself.  If it helps at all, I know there are free alternatives to Excel like Google Docs and OpenOffice, but those have their own learning curves as well. 

 

It might be a good idea to download and save the files so you have them for your records any way, since eBay only retains them for 90 days.  At least at that point you would have the data files saved so you could share them with an accountant or have someone with Excel help you with them if you really do need that info for tax filing or anything else later on down the road.

Message 9 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?

Thanks for the info, I don't check email very often, too many addresses and too much junk. lol!

Message 10 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?


@rockusone wrote:

Thanks for the info, I don't check email very often, too many addresses and too much junk. lol!


It is not in your best interest to ignore emails from Ebay.  Certainly many are not important or don't interest me, but when it is about changes to the site or policy issues, it just isn't a good plan to ignore them and then just come to the threads to complain about something you didn't know was happening because you didn't take the time to read the email.  At some point you will miss something that is really important and could hurt the health of your selling account or cost you real money.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 11 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?


@autopiacarcare wrote:

@readabouthorses wrote:

I downloaded that report to see what it would like since I don't have Excel ... it was a total unreadable mess! LOL.

 

I don't really need it right now but thought I'd get a handle on what it would be like in future if I do need it. Can't use what I was given.


I know it's a bit of a pain if you don't have the right programs.  Unfortunately, it's the only way eBay is currently providing that data right now, short of just looking at the totals for each sale and doing the math yourself.  If it helps at all, I know there are free alternatives to Excel like Google Docs and OpenOffice, but those have their own learning curves as well. 

 

It might be a good idea to download and save the files so you have them for your records any way, since eBay only retains them for 90 days.  At least at that point you would have the data files saved so you could share them with an accountant or have someone with Excel help you with them if you really do need that info for tax filing or anything else later on down the road.


I do have Open Office and that is what I opened the report in .. the spreadsheet in the OpenOffice Suite. It was a mess. I've opened up other reports from other sources in that program and they have always been fine. I probably just need to play with it a bit more ... I hate spreadsheets anyway ... I'd rather give birth to another baby than have to work with a spreadsheet program.

Message 12 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?


@readabouthorses wrote:


I do have Open Office and that is what I opened the report in .. the spreadsheet in the OpenOffice Suite. It was a mess. I've opened up other reports from other sources in that program and they have always been fine. I probably just need to play with it a bit more ... I hate spreadsheets anyway ... I'd rather give birth to another baby than have to work with a spreadsheet program.


@readabouthorses  - I know the feeling. I have a love/hate relationship with spreadsheets sometimes myself.  They sure do come in handy sometimes but other times they make you want to throw the computer out the window.   I don't want to derail this thread, but am happy to answer questions in a private message if there's anything I can do to try to help you make that file work.  Not an expert by any means, but I've picked up a few tricks along the way. Smiley Wink

Message 13 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?


@autopiacarcare wrote:

@readabouthorses wrote:


I do have Open Office and that is what I opened the report in .. the spreadsheet in the OpenOffice Suite. It was a mess. I've opened up other reports from other sources in that program and they have always been fine. I probably just need to play with it a bit more ... I hate spreadsheets anyway ... I'd rather give birth to another baby than have to work with a spreadsheet program.


@readabouthorses  - I know the feeling. I have a love/hate relationship with spreadsheets sometimes myself.  They sure do come in handy sometimes but other times they make you want to throw the computer out the window.   I don't want to derail this thread, but am happy to answer questions in a private message if there's anything I can do to try to help you make that file work.  Not an expert by any means, but I've picked up a few tricks along the way. Smiley Wink


Thanks for the offer. I do have a friend who is a whiz at spreadsheets so I'm going to ask her to take a look at it and see what I am doing wrong. I don't need any of the info right now but as more and more states come into the mix at some point I think all of us sellers will be getting many more buyers with sales tax that we probably need to be keeping an eye on.

Message 14 of 15
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Re: Why is sales tax included in Seller Hub 'Total Sales' but not in 'Selling Costs'?


@readabouthorses wrote:

I downloaded that report to see what it would like since I don't have Excel ... it was a total unreadable mess! LOL.

 

I don't really need it right now but thought I'd get a handle on what it would be like in future if I do need it. Can't use what I was given.


I personally use Google Sheets. It's free. And Microsoft has a free version of Excel online, as well as Open Office. Essentially you just need a spread sheet program. It's a Comma Separated Value (CSV) report. Most Spreadsheets try to convert numbers to math equations, so Item #'s for example look weird until you format them as "text".

 

Also, you can delete the first several rows and make a header row. That's how I handle CSV's in general.

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