Will eBay be collecting and remitting the sales tax on behalf of sellers?

[brjen-32]

I know I know *groan* yet another sales tax thread.

I wonder if eBay will implement a program similar to what Amazon has. Amazon both collects and remits the sales tax for each date on behalf of the seller. This keeps the sellers from having to figure out individual tax code for every location Etc.

Do you all supposed to eBay will be following suit?

[divwido]

That depends entirely on what state sales tax.

States that demand taxes be paid on every sale, no matter where-eBay has that job.

Sales taxes by sellers who have resale licenses will handle their own state taxes.

[terryinstow]

If they don't small sellers will probably close down

[brjen-32]

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@terryinstow wrote:

If they don't small sellers will probably close down

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that is my thought as well. I mean I have been remitting my taxes to the state of South Dakota all along due to being a license business in my state. But many small sellers do not have a business license and are going to be so confused and put off by having to do sales tax that they're just going to give up.

Or sell locally under the table.

[password9019]

IMO, used items sold on eBay should not be taxed by anyone for any purpose, especially if they are incomplete items. Period.

[the*dog*ate*my*tablecloth]

From what I've been reading Amazon is only doing this right now for sales to PA and WA. They're the only states that have put into place a marketplace tax.

[brjen-32]

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@the*dog*ate*my*tablecloth wrote:

From what I've been reading Amazon is only doing this right now for sales to PA and WA. They're the only states that have put into place a marketplace tax.

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I recently paid 12% sales tax on a purchase from Amazon and I'm in SD.

[the*dog*ate*my*tablecloth]

Was your purchase actually from Amazon or a third party seller? We're talking about marketplace purchases not purchases from Amazon directly. We know those are charged sales tax.

[brjen-32]

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@the*dog*ate*my*tablecloth wrote:

Was your purchase actually from Amazon or a third party seller? We're talking about marketplace purchases not purchases from Amazon directly. We know those are charged sales tax.

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I'm assuming it was from Amazon directly because it was a Kindle Fire

[southern*sweet*tea]

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@the*dog*ate*my*tablecloth wrote:

From what I've been reading Amazon is only doing this right now for sales to PA and WA. They're the only states that have put into place a marketplace tax.

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Amz has charged tax to MS since last year. (no, they do not have a presence here) Our online tax law went into effect the first of this year.  In MS the tax is only applicable to businesses who sell over $250k/yr to MS residents.  Sorry, not sure if it was Amz or a 3P seller.

**Just went back and looked. I've only had two Amz purchases this year, one Amz, one 3P. The 3P had no tax, the Amz one did.

[the*dog*ate*my*tablecloth]

The question again is not whether Amazon is charging sales tax on Amazon sales, they are doing that in all States now that have a sales tax. The question is whether they have been collecting and remitting sales tax on third party sales. From what I've read that's only been happening in PA and WA.

[the*dog*ate*my*tablecloth]

I have very few third party Amazon purchases and they would largely be exempt because of the MA sales tax exclusions.

[southern*sweet*tea]

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@the*dog*ate*my*tablecloth wrote:

The question again is not whether Amazon is charging sales tax on Amazon sales, they are doing that in all States now that have a sales tax. The question is whether they have been collecting and remitting sales tax on third party sales. From what I've read that's only been happening in PA and WA.

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I edited my reply. My 3P did not have tax applied, my Amz did.

[the*dog*ate*my*tablecloth]

I saw that thank you for figuring it out!

I don't mean to sound like a know it all but I came back from vacation a week or so ago to the PA DOR demand letter. I did a lot of reading to find out if I was liable for the penalties they stated in the letter. 

I can't (I actually can) believe that Amazon has been collecting in two states and Ebay has not (according to @goodluckselling). Wonder what that's going to mean for Ebay?

[southern*sweet*tea]

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@the*dog*ate*my*tablecloth wrote:

I saw that thank you for figuring it out!

I don't mean to sound like a know it all but I came back from vacation a week or so ago to the PA DOR demand letter. I did a lot of reading to find out if I was liable for the penalties they stated in the letter. 

I can't (I actually can) believe that Amazon has been collecting in two states and Ebay has not (according to @goodluckselling). Wonder what that's going to mean for Ebay?

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Ebay doesn't sell anything. Can't collect tax on sales you don't have.