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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/.
From what I’m interpreting in the IRS definition of “transactions” it means total sale transactions. Not number of items sold. For me, my shop sales is equal to multiple items in one sale. So this makes a difference.
At issue is the fact that I do not make enough sales in any particular state to warrant collecting & paying sales tax. The markeplace does as an aggregate.
I’m seeing a trend towards making the sellers pay for marketplace’s handling of those funds and making payments to the various states. Personally, my take on it is that the marketplaces are making interest and using those funds until such time as they actually make the payments to the state, which is quarterly.
So in effect, the marketplaces are already making money on this new tax collecting policy and should not be considering it to be an expense, but a new source of temporary funds.