eBay will begin collecting sales tax for four additional states: Hawaii, Illinois, Wisconsin, and Michigan. eBay said, “Regardless of your physical location, if you sell to buyers in certain states, those states may require you to collect applicable taxes on transactions. “
Based on new laws in the four states, it will calculate, collect, and remit sales tax for applicable orders shipped to customers in those states starting January 1, 2020.
However, eBay failed to point out that sellers will be paying the payment-processing fees for the sales tax portion of those transactions despite the fact it’s eBay’s responsibility to collect the tax.
eBay told sellers, “Once we start collecting tax in these states, 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.”
It added that there were “no opt-outs for selling items to the states listed above, or out of eBay automatically collecting sales tax for applicable orders,” and it said it would likely add additional states to the list.
“For more information on these new tax requirements, we recommend consulting with your tax advisor,” eBay said, and it pointed to its help pages for more information.
You can find Monday’s announcement on the eBay Announcement Board.