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Sun Dec 29 2019 11:12:08

Seller Shares Workaround to Obtain eBay Sales Tax Info

By: Ina Steiner

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Sellers have indicated eBay does not provide a way for them to easily find and print sales tax information needed when filing their business taxes in April. eBay is required to collect sales tax from buyers located in certain states, but the tax it collects will be included in the totals on sellers' Form 1099-K provided to the IRS.

To get an idea of how unwieldy the process is, check out a workaround an EcommerceBytes reader described in order to obtain the necessary information. 

The reader posted the information in the comments section of the EcommerceBytes Blog post titled, "eBay Ask Me Anything Reveals Core Seller Concerns" in response to a section about eBay sales tax reporting. 

The original question on the eBay Ask Me Anything forum reads as follows:

"We need a 2019 Report Showing Sales Tax Paid for us by Ebay.
"Sellers that are using PayPal will have a problem completing their Federal income taxes this year. Larger sellers receive an IRS form 1099K from PayPal and it will have the sales tax recorded as income. We then need a corresponding report from eBay showing the sales tax paid so it can be deducted from the income.

"I have contacted everyone I know at eBay and they have all agreed it is a problem and eBay has no solution. We need a report from eBay, not PayPal, showing sales tax paid to satisfy the IRS requirements."

A reader responded by posting the following workaround in the comments section of the EcommerceBytes Blog (page 3):

"Answer for sales tax on PayPal: If you call eBay or PayPal they will not have an answer for you but someone at PayPal was smart enough to add this to the PayPal reports. To do this go to PayPal, activity, create report. Select "All Transactions" then the dates you want. It seems that 11/4/19 is the start of when taxes showed up in PayPal instead of eBay. Once the report is downloaded into a csv file/excel sheet you can sort the "Type" column. All of the tax eBay has collected is listed under "Partner Fee". I just copied that info into a new excel sheet and totaled the column. =sum(H1:HX) Fill in X with the last row on your sheet. That is the total number you will need for taxes vs your PayPal 1099. Hope this helps someone out. Merry Christmas! PS. eBay needs to have this total number available so we can just print it out."

(We have not tested that suggested workaround, feel free to chime in with your thoughts and other questions and solutions.)

Note that the eBay executive responding to the Ask Me Anything questions did not address the issue, and we're not sure if eBay (or PayPal) is working to address this reporting deficiency prior to tax-filing season.

related question, also not addressed by eBay: "Why did you decide to stop showing the amount of sales tax that would be due in the listing?" ("The last thing a buyer wants to have is an additional fee that they were not expecting at the time of check out," the seller explained.)



Comments (19) | Permalink

Readers Comments

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: Austiners This user has validated their user name.

Sun Dec 29 12:28:19 2019

What about those of us who have switched to eBay Managed Payments? Those transactions do not appear in PayPal. How do we get sales tax information?

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: Coin Seller This user has validated their user name.

Sun Dec 29 15:53:56 2019

In Seller Hub, click on Orders: Paid & Shipped,
Select the desired time frame, such as ''last month''. Select all the transactions, then under the ''More'' column select ''Download''.  The resulting CSV file contains a column ''eBay Collected Tax'' that is populated for Oct, Nov & Dec 2019.  This appears to address the concern for state sales tax collected by ebay.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: toolguy

Sun Dec 29 21:10:25 2019

My solution to this problem will be to grab numbers out of thin air that suit my needs!

I'm not about to go out of my way to do what eBay should've done. . . .

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: Philo

Mon Dec 30 00:32:31 2019

My concern is that the amount in paypal needs to match the ebay 1099.  I have 0 confidence level they will get that correct.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: Lightning

Mon Dec 30 01:24:06 2019

If the sales tax total amount didn't show up on the 1099, the 2 methods suggested were already in my plans as workarounds.  The info is out there, but it does take some familiarity with spreadsheets, Seller Hub, PayPal Reports, etc. to wring the numbers out.  It's a learning curve, and maybe next year things will go more smoothly.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: Marie

Mon Dec 30 02:35:06 2019

I'm really unsure of what this is really all about.  PayPal has always had detailed transaction reports that can be downloaded into a worksheet program.  From there the seller can work with the data in any way they see fit.

This isn't new and it is a report every single seller that has ever gotten a 1099K from PP should have been working with to balance the 1099K, support it with details and to be able to separate out the amounts shown in Gross Receipts on the 1099K so you can get to your Gross Income / sales.

It isn't a workaround with PP.  It is just as it has always worked.  And if I might say so, it is so easy to do.

Now Ebay is different.  Those that are sellers in MP have it much harder.  While there is a report you can get off Ebay, it will not be for the full year.  They expect you to download the report every 60-90 days and save it.  And you need to remember to do this throughout the year as you can't go back and get the older dates.

Go to the Seller Hub
Then to See All Orders
On the right side of your screen you should see Download Report.  Click on that.

It will take it a moment or two, but it will create a file in a worksheet format for your use.  It does have all the details you would need.  The problem is that it only goes back so far.  

For example the one I just created from from 12-29-19 back to 10-1-19.

There are a couple things really lacking in this report.  The column for the date of the transaction is all the way in column AG.  That is workable by moving the column.

But dang it is so silly that we can't run a report by date range.  These reports will not go back any more than 90 days.  And that is not 3 months in some cases throughout the year because not all months only have 30 days.  

The information needed is on these Ebay reports.  And lots of other information that is likely not needed by most.  But the limitations on this report are just unacceptable for accounting purposes.  And I'd venture a guess that they wouldn't meet IRS requirements because companies responsible for issuing 1099Ks are also suppose to have reconciliation reports available to members.

PP is fine, plenty of good reports to work with.  No excuse for anyone not to be able to get the info needed.

Ebay, well not so much.  And they are ridiculously behind on getting proper reports for their members.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: cvsharkey This user has validated their user name.

Mon Dec 30 06:58:58 2019

As I've mentioned before, Etsy is abiding by this same process--not offering a report on sales taxes collected.

I'm wondering if Amazon is doing the same, being one of the "Big 3" marketplaces collecting sales tax? Or if they're providing this documentation.

Anyone know?

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: maxoptical This user has validated their user name.
Web Site

Mon Dec 30 08:10:10 2019

Hello All,  I am the persone ECB quoted in this story.

I have a few points to make.  I fully understand I can pull a report from PP and extract the numbers.   But Paypal is not the company paying any taxes,  all taxes are paid by eBay.

I called the IRS I was told I need a report from the company that actually paying the tax and not the company who collected the funds from the buyers.

This needs to be an easy to download end of year report from eBay.

Second,  Speaking to Harry Tempkin, at an event in New York, he confirmed this is an issue that needs to be addressed.  He also told me sales tax would NOT be on the 1099K given to customers on eBay's Managed Payments.

I have addressed all of my concerns with eBay to the point I have now been told they will no longer discuss this matter with me.

This is a huge fail by eBay.

John Norman

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: Windkissed This user has validated their user name.
Web Site

Mon Dec 30 08:22:06 2019

I understand that 1099''s are for sellers who make over $20,000.  Am I correct in that?

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: iheartjacksparrow

Mon Dec 30 10:48:06 2019

@Windkissed - I looked it up, and it's 200 transactions AND $20,000+ in sales.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: Marie

Mon Dec 30 13:25:04 2019

@cvsharkey

Amazon has detailed transaction reports you can download.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: thievesBay This user has validated their user name.

Mon Dec 30 14:56:12 2019

What's the workaround to have a company that doesn't blatantly support fraud of all kinds or use endless scams, schemes, tricks and deception to steal money from you?

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: up74 This user has validated their user name.

Mon Dec 30 16:12:48 2019

I just spoke to Paypal about this sales tax issue where ebay collects the sales tax and Paypal told me that the sales tax ebay has collected is NOT going to be included in the amounts shown on your 1099K.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: Marie

Mon Dec 30 16:47:37 2019

@up74

I would question if that CSR actually understood the procedure.  For Money Processors they are required by IRS to report total gross receipts on the 1099K.  So if PayPal does not include it, it would be in direct conflict with IRS instructions.

PP's reports are really easy to separate out the sales tax Ebay is paying.  It just does not have to be an issue unless someone wants it to be one.

If you are a seller in a state that has sales tax and your state is now under an MFL, what did you do before?  When you were collecting the sales tax for sales within your state.  That was in your Gross Receipts from PP on the 1099Ks.  

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: up74 This user has validated their user name.

Mon Dec 30 17:54:30 2019

Thanks @Marie you post so much helpful information. I was just passing along what the Papal person told me after putting me on hold to get answers. When I collected the sales tax in my state, I actually received the funds into my account and it was easy to separate out on the paypal receipts/ Going forward the seller does not ever get that money, so I could see why it would not be included in receipts. if the seller never had those funds in their account.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: Marie

Mon Dec 30 17:59:59 2019

@up74

Oh now that may be where some of this confusion is coming from.  Thank you for your post.

YES, the seller DOES initially receive the sales tax funds from the sale tax Ebay is to collect into your PP account.  Just like you did when you as a seller were collecting your own sales tax within your state.

Both types do hit your PP account and it is why we are now paying PP fees on the amount received for the sales tax being remitted by Ebay.  Just as we paid PP fees on sales tax when we collected our own.  It is all the same.

The differences is that the money is removed from our PP account almost instantly and given to Ebay for remittance to the proper state.  That is the ONLY difference.

You can see this on the detailed transaction reports you can download from PP.  You will see the sales tax hitting your account and then there will be a separate transaction removing it.

But it does hit your account.  It just is never there long enough for you to do anything with it.  So it will be on your 1099K.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: comments This user has validated their user name.

Mon Dec 30 20:22:33 2019

There is no value to this work around. Fees and taxes are reported in two different ways when doing taxes. Ebay is collecting sales tax and paying it to the sellers only to collect it back as a fee, That is not the same as sales tax collection.

IS it correct to report this as sales tax collection OR is it correct just to report it as a fee?

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

This user has validated their user name. by: Marie

Mon Dec 30 20:29:03 2019

@comments

That is not what Ebay is doing.  You will not find a single entry on your Ebay invoice for a fee related to the sales tax they have collected due to the MFLs.

As to your other question, you may want to review my other postings as I did address that.

Perminate Link for Seller Shares Workaround to Obtain eBay Sales Tax Info   Seller Shares Workaround to Obtain eBay Sales Tax Info

by: Jim S. This user has validated their user name.

Sat Jan 18 12:30:22 2020

eBay only has sales transactions back 90 days and PayPal didn't start recording the Marketplace sales tax collection until Nov 1. There is no other place I can find to obtain the sales tax collected by eBay from Jan 1-Oct 31. Anyone else???

On the other hand, Amazon provided a monthly summary on the back to their 1099K form.



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