Deleted
Deleted Member
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Post by Deleted on Feb 6, 2020 23:32:58 GMT
I searched the board and do not find anything regarding taxes that ebay is collecting from buyers.
This started happening in November 2019. It appears that the money is collected, then withdrawn from my PP account.
Are we supposed to report these taxes?
Any input
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Post by chapeaunoir on Feb 6, 2020 23:52:58 GMT
eBay handles all the tax collection and disbursement - you don't have to do anything except change how you report your own state taxes, but that varies from state to state and you would need to check with your own state.
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val2525
Chaos Manager
Posts: 30,760 
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Post by val2525 on Feb 7, 2020 19:18:39 GMT
Starting in November 2019, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:
In states where eBay is required to collect Internet Sales Tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.
Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.
A record of the sales tax portion of the order will be available on the Seller Hub Order details page and through our Download order report.More info is available on the FAQ tab: pages.ebay.com/seller-center/service-and-payments/tax-information.html#m17-2-tb1
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Deleted
Deleted Member
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Post by Deleted on Feb 7, 2020 21:42:34 GMT
Thank you for the info! Even though I've been selling, I'm out of the loop.
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val2525
Chaos Manager
Posts: 30,760
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Post by val2525 on Feb 7, 2020 22:35:27 GMT
LOL! It's easy to do.
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Post by somany on Feb 7, 2020 23:37:36 GMT
So it looks like from my paypal 1099 that the gross amount including tax is included in the 1099 reported amount which means we will need to deduct the sales tax as an expense, correct?
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val2525
Chaos Manager
Posts: 30,760
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Post by val2525 on Feb 8, 2020 0:26:48 GMT
Yes.
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Post by chapeaunoir on Feb 8, 2020 1:49:59 GMT
Just from 11/4 on - I downloaded my 4Q 2019 Paypal summary as a spreadsheet and it had the state sales tax collected broken out - all I had to do was punch in the add equation to get the total.
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val2525
Chaos Manager
Posts: 30,760
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Post by val2525 on Feb 8, 2020 3:29:47 GMT
You might download for the whole year. Ebay was collecting sales tax for some states as early as January of last year.
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Post by somany on Feb 8, 2020 3:43:36 GMT
Yes, but it appears they started reporting it different in November. I downloaded the whole year and only November and December have sales tax as a separate line item.
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Post by chapeaunoir on Feb 8, 2020 6:02:17 GMT
They included it into Paypal to be shown as part of total receipts on 11/4 so it has to be deducted from that time on.
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