Ebay Seller Tax Question

[Jersey City Giants]

If you are a small seller do you still have to set up taxes? Do certain states have cut offs to do this? I stopped selling a while ago and always kept my selling below 200 lots and $10K a year not to have eBay send any info to the government.

[Johnny630]

Claim Everything

[Jersey City Giants]

I have stopped selling as it way too difficult to file my taxes when I have no clue what I paid for a card in 1988 that I just sold. Too much work. I filed one year when I sold a ton of stuff. I had to resort to a fair value assessment of most items. That took me forever to put together (essentially I had to find three similar sales on record for each item for my accountant).

[thescooper]

I am a Canadian e-bayer and have a U.S. PO box in Washington.
I have to pay tax on my purchases. Do I just kiss that tax goodbye?

[glchen]

Originally Posted by Jersey City Giants

If you are a small seller do you still have to set up taxes? Do certain states have cut offs to do this? I stopped selling a while ago and always kept my selling below 200 lots and $10K a year not to have eBay send any info to the government.

As a seller, you don't need to do anything to set up sales tax. Ebay will do everything instead, and charge all buyers for sales tax depending on your location. It doesn't matter how much you sell. Everything will be taxed (unless the buyer has a resale cert) by ebay.

[swarmee]

Originally Posted by glchen

As a seller, you don't need to do anything to set up sales tax. Ebay will do everything instead, and charge all buyers for sales tax depending on your location. It doesn't matter how much you sell. Everything will be taxed (unless the buyer has a resale cert) by ebay.

Not exactly; buyers will be taxed by their delivery location, not the seller's location. Seller may have to collect tax independently only on sales to buyers in their own state.
Not all states have sales tax laws passed that require internet companies to collect and remit. Oregon has no state sales tax, one major reason the Vault was built there. They even promote it openly that it's a way to avoid sales taxes.

[Yastrzemski Sports]

It depends on what type of tax you are talking about.
Sales tax - do nothing. eBay does all of the work.
Income tax - $10k is a significant number. You should be getting a tax form from PayPal for that amount. You’ll have to claim it on your income taxes but would have to speak to an accountant as to how it affects you in your state.

[Eggoman]

Originally Posted by Yastrzemski Sports

It depends on what type of tax you are talking about.
Sales tax - do nothing. eBay does all of the work.
Income tax - $10k is a significant number. You should be getting a tax form from PayPal for that amount. You’ll have to claim it on your income taxes but would have to speak to an accountant as to how it affects you in your state.

This is NOT QUITE correct.

In NY, ebay started collecting NY Sales Tax on June 1st, I ASSUME that I will still have to file for any and all NY State sales tax owed prior to that date for this tax year, right? Other states were phased in at different times, too.

Or am I missing something???

[Yastrzemski Sports]

Originally Posted by Eggoman

This is NOT QUITE correct.

In NY, ebay started collecting NY Sales Tax on June 1st, I ASSUME that I will still have to file for any and all NY State sales tax owed prior to that date for this tax year, right? Other states were phased in at different times, too.

Or am I missing something???

That’s really a question for an accountant. I have a registered business in ny since 1999 and I have collected sales tax in ny when I sold something here and paid that tax to the state. For out of state sales I have not. So I don’t know your situation - whether you have a registered business, what state you operate in, etc. There are a lot of variables there. I would encourage you to see an accountant so everything is done correctly.

[Eggoman]

Originally Posted by Yastrzemski Sports

That’s really a question for an accountant. I have a registered business in ny since 1999 and I have collected sales tax in ny when I sold something here and paid that tax to the state. For out of state sales I have not. So I don’t know your situation - whether you have a registered business, what state you operate in, etc. There are a lot of variables there. I would encourage you to see an accountant so everything is done correctly.

I am registered in NYS and do have an accountant for those exact reasons.

It just seems to me that because eBay phased collecting NY Sales Tax in mid-Year, I collected sales tax for 5 months and they collected it for the rest.

I will have to file AND pay those first 5 months or so and ebay the balance of 2019-2020 tax year. It's A BIT messy...

[pingman59]

Originally Posted by Yastrzemski Sports

It depends on what type of tax you are talking about.
Sales tax - do nothing. eBay does all of the work.
Income tax - $10k is a significant number. You should be getting a tax form from PayPal for that amount. You’ll have to claim it on your income taxes but would have to speak to an accountant as to how it affects you in your state.

Just experienced a NY state sale where eBay charged the buyer NY state sales tax and then automatically withdrew that sales tax amount from my PayPal account. I was charged the PayPal fee for the entire purchase, which included the sales tax. So, I got stuck with paying the PayPal fee on the NY state sales tax. This really stinks.