Will we have to do anything about reporting sales tax collected at the end of the year? I live in MI I have always reported my sales taxes, which ebay collected, and I sent the money to the state. Will ebay send my collected MI sales tax to MI, or do I have to send it to the state?
It MI is a marketplace facilitator state aka eBay collects the tax not you the seller. If this is the case, eBay will remit the tax to the state. You may have to report how much tax was collected and apply it as a credit but it depends on how your state handles sales tax. I would talk to a CPA to make sure of what your state requires you, the seller, to do.
The taxes have already been collected and paid by eBay as a marketplace, but you will still need to file with your state as a matter of record. It's best to check with your own state for details.
“The most common way people give up their power is by thinking they don’t have any.” — Alice Walker
EBAY will start collecting Sales Tax on JANUARY 1, 2020 for State of Michigan. You would be responsible Sales Tax before January 1, 2020.
Once EBAY starts collecting Sales Tax that will be send directly to your State. I would check with your State officials to find out if you need to report Sales Tax in the future.
Phone your state representative. Her office should be able to give you the correct information, or at least the phone number of the office which can answer your questions.
Be sure to make a note of what tax ebay collected whether it was through paypal or managed payments and i mean all states they collected for not just MI.
That is not your income but it will show on your 1099 in with gross receipts. You probably dealt with this last year for non MI states but same as me had to file MI sales tax separately
