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Ebay Now Collects Sales Tax

 
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Pillar Of The Community
United States
568 Posts
Posted 02/27/2019   9:32 pm  Show Profile Check paperhistory's eBay Listings Bookmark this reply Add paperhistory to your friends list  Get a Link to this Reply
I had a sales tax charge on my Kelleher bill too. I provided my resale license number and had a new invoice sans tax in a matter of minutes. Max was very easy to work with to solve that....
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New Member
United States
1 Posts
Posted 09/13/2019   05:17 am  Show Profile Bookmark this reply Add Detts to your friends list  Get a Link to this Reply

Quote:

Washington State sales taxes are "destination based" creating a minefield for sellers and "market facilitators" like eBay. Tax rates vary by district and may include entities like regional transit districts with boundaries that split ZIP codes. Stamp dealers who sell at shows in Washington State have additional issues to sort out.

Recent communication from Washington State DOR regarding marketplace facilitator reporting requirements:


Quote:
Thank you for your email message dated January 14, 2019 regarding selling through marketplace facilitators.
accounting firms near me
http://yourbooksontime.com/accounting-firms
Our responses follow your questions.

1. Are market facilitators required to report Washington State sales to sellers when tax is collected on their behalf?

No. Generally, marketplace facilitators must collect the sales and remit the sales tax directly to the Department of Revenue on behalf of their marketplace sellers.

2. If not, how do in-state businesses and certain other retailers subject to B&O tax file an accurate tax return?

Marketplace sellers should maintain confirmation that the marketplace facilitator will collect and remit sales tax on their behalf.

In this case, the marketplace seller should report their gross sales to consumers (including sales made through a marketplace facilitator) under both the retailing B&O tax and retail sales tax classifications. For the sales where a marketplace facilitator collects and remits Washington's sales tax on their behalf, they may claim a deduction under the Retail Sales tax classification for "Retail Sales Tax Collected by Facilitator."

If you have further questions, please write again.

Tina Greene
Tax Information Specialist Washington State Department of Revenue RulingsDOR@dor.wa.gov


While no reporting requirement exists, I don't understand how sellers required to report Washington State Sales tax will be able to file a complete and accurate tax return without detailed reporting from marketplace facilitators like eBay.

The complete thread appeared yesterday in eCommerce Bytes:

https://www.ecommercebytes.com/C/le...9377952.html

The State of California has announced that tax collection from out of state sellers will begin April 1, 2019 for sellers meeting their 200 transaction or $100,000 annual sales criteria. I checked my sales on eBay for 2018 and found that it is ridiculously easy to reach the 200 sales-threshold without coming close to the dollar amount criteria. California also has a destination-based sales tax, but it is nowhere near as complicated as Washington State. Out-of-state stamp dealers who sell at shows in California will be in a bind because, the state may start asking dealers about out-of-state sales Internet sales when they set up at major shows like WESTPEX or SESCAL. Since it is doubtful that eBay will start collecting California sales tax on April 1st, who will compel high volume rogue dealers that clutter the eBay site to collect California sales taxes. Will failure to collect sales taxes be added to misidentified and misdescribed stamps as another competitive disadvantage faced by legitimate stamp sellers on eBay?


how is the situation with taxes now?
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Pillar Of The Community
United States
1246 Posts
Posted 09/14/2019   02:13 am  Show Profile Check cfrphoto's eBay Listings Bookmark this reply Add cfrphoto to your friends list  Get a Link to this Reply
California changed direction in mid-April and retroactively applied a $500,000 sales threshold with no transaction threshold at the direction of the state legislature. Sales tax collected under the superseded threshold limit was then refunded. Keep in mind that California is 35 times the population of South Dakota where the $10,000 Wayfair threshold was established. Beware of inconsistent descriptions of requirements by sales tax services vendors. TaxJar did not describe the old requirement correctly but Avalara did. Bottom line: Check official state tax websites.
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113 Posts
Posted 09/18/2019   06:29 am  Show Profile Bookmark this reply Add Torin to your friends list  Get a Link to this Reply
Does eBay collect sales tax on purchases from the official USPS store on eBay?
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Pillar Of The Community
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Posted 09/18/2019   06:36 am  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
The Postal Service, as a Federal entity, is exempt from State and local sales tax on its products.
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Pillar Of The Community
United States
1246 Posts
Posted 09/19/2019   03:35 am  Show Profile Check cfrphoto's eBay Listings Bookmark this reply Add cfrphoto to your friends list  Get a Link to this Reply
Does eBay know that Federal entities are exempt? USPS listings on eBay include the standard eBay notice that eBay may collect sales tax at checkout. Kansas explicitly exempts stamps intended for use as postage from sales tax. Other states may also have similar rules.

When eBay starts collecting sales tax for sellers shipping to Massachusetts on October 1st, expect outrage if eBay starts collecting sales tax on clothing.
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Edited by cfrphoto - 09/19/2019 03:37 am
Pillar Of The Community
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Posted 09/19/2019   07:09 am  Show Profile Bookmark this reply Add jkelley01938 to your friends list  Get a Link to this Reply
....and food. That's exempt too.

Jack Kelley
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Posted 09/19/2019   07:14 am  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply

Quote:
....and food. That's exempt too.


Tangent alert:

It depends on the state. Here in Sillynoise we have bifurcated rates when it comes to food and drink. For example, soft drinks and some other things deemed bad for you by the food police are taxed at the full sales tax rate, whereas normal foodstuffs are taxed at 1%.

It gets even crazier when you deal with local sales tax rates. For example, our wonderful local government has instituted an additional 1.5% sales tax on food and drink sold at fast food restaurants.

New state motto "Illinois: California's Smaller Intellectually Challenged Little Brother"
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Edited by revenuecollector - 09/19/2019 07:18 am
Pillar Of The Community
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Posted 09/19/2019   07:18 am  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
MA is a mess. Apparel is exempt except if it is solely for protective or athletic use. So "riding boots" are taxable but "boots" are not. Athletic uniforms are taxable but jogging bras, tennis clothing and ski pants are not.......
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Valued Member
113 Posts
Posted 09/19/2019   12:52 pm  Show Profile Bookmark this reply Add Torin to your friends list  Get a Link to this Reply
I sure hope no sales tax is collected on sales of postage stamps from the USPS store on eBay come October 1st, when my state commences sales tax collection on marketplace facilitators.

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Posted 10/02/2019   07:26 am  Show Profile Check KRelyea's eBay Listings Bookmark this reply Add KRelyea to your friends list  Get a Link to this Reply
I received a sales tax status update from eBay yesterday;




I only sell on eBay, so from my point of view this is good news. I used to collect sales data, cull out NYS sales and report yearly. Now eBay does it all for me. I couldn't possibly comply with the various state sales tax rules, now I don't worry about any of that.
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Pillar Of The Community
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Posted 10/02/2019   3:51 pm  Show Profile Check cfrphoto's eBay Listings Bookmark this reply Add cfrphoto to your friends list  Get a Link to this Reply
Ken,

I am not sure if anything eBay does is good news. To date, they have botched tax and payments reporting, especially for users of third-party applications like SixBIt. While eBay tax collection may be a convenience to sellers who have no sales tax account, sellers who fail to capture sales tax payment amounts may end up paying too much to the IRS at tax time. Unless something has changed, eBay reporting only goes back 90 days. Sellers who attempt to capture data at the end of the year be out of luck unless they are using a third-party application like SixBit to collect sales, tax and payments data.

Unfortunately, eBay was slow to implement reporting changes for sales tax collection. State of Washington tax collection by eBay began January 1st but sales tax collected by eBay was not added to the Orders Report until mid-April. Sales tax collected for combined orders continued to be a problem all summer. The bug many have been fixed at the end of September. Do not be surprised if state sales tax authorities ask sellers to report sales tax collected by eBay.

When eBay started the Managed Payments program, nothing was done to report data to third-party applications like SixBit. In the fall seller update, eBay made a vague promise to make data available to third party applications. As of now, sellers incarcerated in the Managed Payments program cannot not receive information about eBay payment commissions from third-party applications.

Clark
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Edited by cfrphoto - 10/02/2019 3:56 pm
Valued Member
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337 Posts
Posted 10/02/2019   4:09 pm  Show Profile Bookmark this reply Add 3193zd to your friends list  Get a Link to this Reply
Here is ebays new policy posted today.

Upcoming changes to eBay tax collection.

In 2018, PayPal and eBay worked together to implement a solution to comply with laws that require eBay to collect and remit tax on applicable transactions. Those transactions that require eBay to collect tax are currently divided into two separate charges - one for the item purchased and another for the associated tax.

Effective November 2019, PayPal and eBay will change the way these transactions are processed and how taxes are collected and remitted.

For transactions that require eBay to collect tax from buyers, the tax amount will be included in the gross purchase amount to be processed. Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.

You do not need to take any action.
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Michael Darabaris
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1246 Posts
Posted 10/02/2019   4:47 pm  Show Profile Check cfrphoto's eBay Listings Bookmark this reply Add cfrphoto to your friends list  Get a Link to this Reply

Quote:


For transactions that require eBay to collect tax from buyers, the tax amount will be included in the gross purchase amount to be processed. Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.

You do not need to take any action.


This is not true. Anyone who attempts to keep accurate records may be forced to make changes to their accounting system to correctly import sales data received from eBay or PayPal. The current Orders report is already set up correctly and presumably will not change the meaning or content of the "Sold For" or the "Total Price" column. Before item is paid and the shipping address is determined how can the "Total Price" column is zero, suggesting that it should have been named "Total Paid"

Will eBay and PayPal make changes on the same date? What happens to unpaid eBay orders and pending PayPal eChecks? Why not wait and change at the end of the calendar year>\? Will sellers and third-party applications have enough time to adapt?

Also, the complete eBay message included a note that Managed Payments would not be affected. What did they mean by that?
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Edited by cfrphoto - 10/02/2019 5:28 pm
Valued Member
United States
337 Posts
Posted 10/02/2019   4:53 pm  Show Profile Bookmark this reply Add 3193zd to your friends list  Get a Link to this Reply
Hi Cfrphoto. just copied and pasted what I received today from eBay word for word.
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Michael Darabaris
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