10-23-2019 01:48 AM
I live in the united states and I understand ebay is collecting and remitting taxes on my behalf now. Before only a person who lived in ohio selling to people in ohio would have to collect sales tax but now its changing to any sales in any state must collect tax. But i've bought some items from international sellers and it charges me sales tax. So if someone in china sells a item to someone in ohio and it charges them sales tax and ebay collects and remits the sales tax to ohio how would that work. How would a person in china have a ohio or even a united states tax identification number to remit the taxes for them. Does it just fall under miscellaneous taxes collected for unknown person. It seems like this would be a huge pool of money the state would receive with no way to track where it came from.
10-23-2019 01:52 AM
The buyer will pay their state for any out-of-state purchases and ebay will collect the tax for your state.
10-23-2019 02:53 AM
@jaad_6732 wrote: ... How would a person in china have a ohio or even a united states tax identification number to remit the taxes for them. ....
eBay collects and remits the funds; the seller doesn't need a tax ID for that.
10-23-2019 04:18 AM
@jaad_6732 wrote:How would a person in china have a ohio or even a united states tax identification number to remit the taxes for them.
The seller doesn't receive the funds from the sales tax, it goes straight to Ebay and they send it to the states.
It doesn't matter where the item or seller is located, just what state the item is delivered to.
10-23-2019 04:32 AM
The state sales tax currently being collected by eBay for 34 states is charged according to the delivery address of the buyer, not the seller. That's why you were charged state sales tax on items you purchased from a seller in China.
Again, the seller does not pay state sales tax. The buyer pays state sales tax for the state in the US to which his purchases are delivered. Thus, international buyers who shop in the US and use a freight forwarder in the US will be charged state sales tax for the state of the freight forwarder's location.
10-23-2019 06:56 AM
There's no reason for the State to have to track it back to the individual seller since the Marketplace Facilitator laws make Ebay responsible for collecting and remitting the tax, not the seller.
10-23-2019 07:39 AM
ebay is collecting the tax from the buyer, not the seller, and remitting the amount to the buyer's state.
The seller is out-of-the-loop, so to speak. The tax is the equivalent of the Use Tax that buyers were avoiding by purchasing on-line, but not declaring to their state.
The individual seller should probably check with their own state as to how and what must be declared by them, to their state, when filing their own tax reports.
10-23-2019 08:33 AM
10-23-2019 09:11 AM
But would that seller even need to bother since the sales tax is collected by eBay, remitted to eBay and eBay then remits it to the state?
10-23-2019 09:17 AM
@jaad_6732 wrote:Will sellers from other countries outside the USA have to pay sales tax to our states now?
If it's an international seller listing on the .com site and the buyer is located in the US- then no, the seller is not responsible for collecting the tax. You as a buyer are responsible for paying and as others have said, eBay is responsible for collecting and remitting to the state.
If it's an international buyer using a re-shipper located in the US- then yes, they would be subject to pay sales tax for the state where it's being delivered- but again, tax would be collected by eBay at the time of payment and remitted to the state where the re-shipper is located.
10-23-2019 11:57 AM - edited 10-23-2019 12:00 PM
@soh.maryl wrote:But would that seller even need to bother since the sales tax is collected by eBay, remitted to eBay and eBay then remits it to the state?
The seller may still have sales within their own state - and not from ebay - where they would have to collect and remit directly to the state themselves. ebay wouldln't be involved there - and, I'm not sure that ebay collects for the seller in their own state. Someone else might know more about that.
10-23-2019 12:03 PM - edited 10-23-2019 12:04 PM
The sales tax is paid by the BUYER.
But yes, as a Canadian seller I can attest that invoices for US buyers show the sales tax they will pay to their states.
It is NOT paid by the seller, no matter where she lives.
However, Paypal is charging their percentage on the total payment, including the sales tax, to the seller.
For those of us not in the USA, that is 3.7% of the sales tax, added to the 30 cents plus 3.7% we pay on the actual sale+shipping.
For money we never touch.
10-23-2019 12:09 PM
@gracieallen01 wrote:
@soh.maryl wrote:But would that seller even need to bother since the sales tax is collected by eBay, remitted to eBay and eBay then remits it to the state?
The seller may still have sales within their own state - and not from ebay - where they would have to collect and remit directly to the state themselves. ebay wouldln't be involved there - and, I'm not sure that ebay collects for the seller in their own state. Someone else might know more about that.
If the sellers state has marketplace facilitator laws, eBay would collect and remit
10-23-2019 12:16 PM
@debsm-6771 wrote:
@gracieallen01 wrote:
@soh.maryl wrote:But would that seller even need to bother since the sales tax is collected by eBay, remitted to eBay and eBay then remits it to the state?
The seller may still have sales within their own state - and not from ebay - where they would have to collect and remit directly to the state themselves. ebay wouldln't be involved there - and, I'm not sure that ebay collects for the seller in their own state. Someone else might know more about that.
If the sellers state has marketplace facilitator laws, eBay would collect and remit
I would think, then, that the seller would definitely have to check with their own state to see what needs to be entered on their own tax forms for gross and profit. It sounds like tax forms may have to be revised.