eBay to start collecting sales tax...

  • 10K Club

    When you sell on eBay, you’re responsible for complying with all applicable tax laws. If you’re selling to buyers outside the US, you should inform them about the potential import charges they’ll need to pay when they receive their item.

    If you sell to buyers in certain states in the US, AU, NZ or in the European Union (EU), your transactions will be subject to applicable sales taxes, Goods and Services Tax, and/or Value Added Tax.

    Sellers’ tax responsibilities

    You are responsible for paying all fees and taxes associated with using eBay as an eBay seller. For more information on eBay’s tax policy and your obligations, see our Tax policy and User Agreement.

    Your tax-related responsibilities may include:

    Paying sales tax on eBay sales
    Paying income tax on eBay sales
    Informing overseas buyers about import charges
    Ability to validate what tax was collected on sales transactions.

  • eBay was already collecting sales tax from purchasers in several states. I think the main change is:

    Starting in November 2019, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:

    • In states where eBay is required to collect Internet Sales Tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.
    • Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.
    • A record of the sales tax portion of the order will be available on the Seller Hub Order details page and through our Download order report.

    Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action. These changes do not apply to sellers in managed payments.

    I think this means seller will also pay the cc processing fee on the sales tax amount as well as the purchase amount. Not sure what that last sentence means… Switch from PayPal to eBay Managed Payments? PP fee is 2.9% + .30 while MP is 2.7% + .25

  • This seems complicated.
    Link to list of 34 included states?

  • Based on applicable tax laws, eBay will calculate, collect, and remit sales tax on behalf of sellers for items shipped to customers in the following states:

    State Effective Date

    Alabama July 1, 2019

    Arizona October 1, 2019

    Arkansas July 1, 2019

    California October 1, 2019

    Colorado October 1, 2019

    Connecticut April 1, 2019

    District of Columbia May 1, 2019

    Hawaii January 1, 2020

    Idaho June 1, 2019

    Illinois January 1, 2020

    Indiana July 1, 2019

    Iowa February 1, 2019

    Kentucky July 1, 2019

    Maine October 1, 2019

    Maryland October 1, 2019

    Massachusetts October 1, 2019

    Minnesota January 1, 2019

    Nebraska May 1, 2019

    Nevada October 1, 2019

    New Jersey May 1, 2019

    New Mexico July 1, 2019

    New York June 1, 2019

    North Dakota October 1, 2019

    Ohio September 1, 2019

    Oklahoma July 1, 2019

    Pennsylvania July 1, 2019

    Rhode Island July 1, 2019

    South Carolina October 1, 2019

    South Dakota July 1, 2019

    Texas October 1, 2019

    Utah October 1, 2019

    Vermont July 1, 2019

    Virginia July 1, 2019

    Washington January 1, 2019

    West Virginia July 1, 2019

    Wisconsin January 1, 2020

    Wyoming July 1, 2019


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