sales tax questions

[iamtoplease]

i have a few questions that i'm hoping someone can help answer

1) with ebay collecting sales tax for my state next month, how does ebay know my tax ID in order to submit the sales tax?  do i need to provide to ebay my sales tax ID?  if so, is there a link of where to do so?

2) on the buying side, i understand that we can apply to be sales tax exempt as a reseller to ebay.  how do we provide this information to ebay?

thanks all.

[slippinjimmy]

eBay doesn't need to know your State Tax Id, they are collecting and submitting under their own account.

As far as Tax Exempt buying, you can find the info at the following page:

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&

An fyi, they will want a copy of an exemption certificate not a copy of your resale certificate.

[iamtoplease]

thank you.  so in the past, i've submitted sales tax under my tax ID for my state.  if it's going to going to be paid by ebay's tax ID...how would the state know that i've paid my sales tax?  would they come after me directly for sales tax payment if they noticed that i've stopped sending in tax payments?

[slippinjimmy]

What State are you in?

In Washington State eBay sellers would report the sales on eBay, there is a new box on the reporting form for Marketplace Facilitator sales, and the amount of Sales Tax collected by eBay, there are a couple of calculations to make but essentially the amounts offset.

eBay will if requested provide the State with a list of sellers and individual amounts collected on their behalf.

Other States may do things differently but they will all have a way to report the numbers.

It's really no different than prior to the MF rules, you report sales but only report Sales Tax for in-State sales. How do they know those sales where actually out of State? They trust you not to lie and back that up with the threat of an audit and penalties if you do.

[shipscript]

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@slippinjimmy wrote:

eBay doesn't need to know your State Tax Id, they are collecting and submitting under their own account.

As far as Tax Exempt buying, you can find the info at the following page:

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&

An fyi, they will want a copy of an exemption certificate not a copy of your resale certificate.

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@slippinjimmy  brings up an interesting point. Here in California, we do not yet have a marketplace ruling, but probably will soon. In our state, it is not sufficient to provide a copy of a resale permit. Instead, when I purchase product for resale, I must provide the vender with a certification (which I can word myself) that essentially declares: I hereby certify that I am in the business of selling XYZ and that the [named] products to be purchased from ACME company will be held for resale.   So it's not adequate to sneak by with the existence of a resale permit; instead, the permit holder is obliged to swear to honoring the rules of the permit, putting the compliance onus on the permit holder, not the vendor. Each state will have its own requirements.

@iamtoplease 

eBay will have various forms that sellers in affected states can download for use in preparing their local sales tax returns. There is no need to file any interstate tax forms unless the seller has a separate online business that meets interstate sales tax thresholds. The forms should provide information on what tax was collected against that seller's sales.

[slippinjimmy]

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@shipscript wrote:

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@slippinjimmy  brings up an interesting point. Here in California, we do not yet have a marketplace ruling, but probably will soon. In our state, it is not sufficient to provide a copy of a resale permit. Instead, when I purchase product for resale, I must provide the vender with a certification (which I can word myself) that essentially declares: I hereby certify that I am in the business of selling XYZ and that the [named] products to be purchased from ACME company will be held for resale.   So it's not adequate to sneak by with the existence of a resale permit; instead, the permit holder is obliged to swear to honoring the rules of the permit, putting the compliance onus on the permit holder, not the vendor. Each state will have its own requirements.

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Yeah I was specific about the form because at least one previous poster (different thread) uploaded their registration certificate and didn't get the result from eBay they expected (they got approval to COLLECT taxes).

The form to use for California is here:

https://www.cdtfa.ca.gov/formspubs/cdtfa230.pdf

[thevintagesilvershop]

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@iamtoplease wrote:

thank you.  so in the past, i've submitted sales tax under my tax ID for my state.  if it's going to going to be paid by ebay's tax ID...how would the state know that i've paid my sales tax?  would they come after me directly for sales tax payment if they noticed that i've stopped sending in tax payments?

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If your Dept of Revenue hassles you, send them a copy of the Marketplace Facilitator law that your state passed. Tell them to go audit ebay. 

[justagirl12]

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@slippinjimmy wrote:

eBay doesn't need to know your State Tax Id, they are collecting and submitting under their own account.

As far as Tax Exempt buying, you can find the info at the following page:

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&

An fyi, they will want a copy of an exemption certificate not a copy of your resale certificate.

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@slippinjimmy What do you mean they will want a copy of an exemption certificate and not a resale certificate? In Florida, I use my Resale Certificate which has a number that is only mine and that is the certificate we use when purchasing for resale. Are you saying eBay isn’t accepting this??? We don’t have anything else. 

[justagirl12]

@slippinjimmy  I think you’re wrong. A tax exemption certificate is for a church, charitable organization, non-profit company......has nothing to do with buying on eBay. A resale certificate is for a business to provide to the business they purchase from in order to not pay sales tax. So, if eBay didn’t accept a buyers resale certificate then there must have been another reason.

[slippinjimmy]

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@justagirl12 wrote:

@slippinjimmy  I think you’re wrong. A tax exemption certificate is for a church, charitable organization, non-profit company......has nothing to do with buying on eBay. A resale certificate is for a business to provide to the business they purchase from in order to not pay sales tax. So, if eBay didn’t accept a buyers resale certificate then there must have been another reason.

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Every State is a bit different, slightly different process and different names. I see that in Florida resellers have to apply for a Certificate of Registration (Form DR-11) and then there is the Florida Annual Resale Certificate for Sales Tax (Form DR-13) which is what you provide to a supplier to be exempt from Sales Tax.

So for eBay you need to submit DR-13 not DR-11.

[eunster1313]

State sales tax exemption is now available

Overview

https://pages.ebay.com/seller-center/seller-updates/2019-spring/marketplace-updates.html#m17-3-tb1

FAQs

https://pages.ebay.com/seller-center/seller-updates/2019-spring/marketplace-updates.html#m17-3-tb2