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eBay to Collect Sales Tax for Additional States

eBay to Collect Sales Tax for Additional States

eBay informed sellers it would begin collecting sales tax from buyers on behalf of more states. In addition, it announced it has also added a buyer exemption system for tax-exempt buyers – for example, charitable entities and resellers.

Announcement follows:

We’re committed to supporting any sellers who have been affected by the June 2018 Supreme Court decision, which changed the rules around how Internet Sales Tax is administered.

What the ruling means for you: Regardless of your physical location, if you sell to buyers in certain states, those states may require you to collect applicable taxes on transactions.

Some states have extended the tax collection obligation to marketplaces. We believe this ruling is unfair to small businesses and will continue to find the best way to support and advocate for our sellers.

For those states that we are collecting tax, you do not need to take any action. There are no extra charges or fees for this service. Prior to these dates, please continue to collect and remit tax in these states and comply with any other applicable requirements they impose.

There are no opt-outs for selling items to the states that we are collecting tax for, or out of eBay automatically collecting sales tax for applicable orders.

Additional states will likely be added. Stay informed on the Help pages.

We have also added a buyer exemption system for tax-exempt buyers (e.g. charitable entities, resellers etc.) that allows you to submit tax exemption certificates to eBay and make purchases without paying tax. Upload your tax exemption certificate here or visit our Help pages for more details.

For additional information on these new tax requirements, we recommend consulting with your tax advisor. If you don’t have one, please contact our partners Avalara and TaxJar for specific insights into the best course of action for you.

As always, thank you for selling on eBay.

SOURCE: eBay Announcement

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.