eBay are set to collect Internet Sales Tax on sellers’ behalf as the policy expands to more US states.
eBay announced yesterday in The eBay Community their commitment to support sellers affected by the June 2018 Supreme Court decision.
What does the ruling mean for eBay sellers?
Some US states have extended the tax collection obligation to marketplaces.
The policy affects sellers regardless of their physical location. This means if they sell in certain states, they may require to collect applicable taxes on transactions.
eBay say that they believe this ruling is unfair to small businesses. They promise to continue to find the best way to support and advocate for their sellers.
For those states that eBay are collecting tax, sellers do not need to take any action. There are no extra charges or fees for this service. Prior to these dates, sellers should continue to collect and remit tax in these states and comply with any other applicable requirements they impose.
There are no opt-outs for selling items to the states that eBay are collecting tax for, or out of eBay automatically collecting sales tax for applicable orders.
‘Additional states might be added’
eBay say that additional US states will likely to be added. They encourage sellers to stay informed on the help pages.
eBay have also added a buyer system for tax-exempt buyers (e.g. charitable entities, resellers etc.) that allows sellers to submit tax exemption certificates to eBay and make purchases without paying tax. Merchants can upload their tax exemption certificate here or visit eBay’s help pages for more details.
eBay recommends sellers to consult their tax advisors on the new tax requirements. Sellers can also contact eBay’s partners Avalara and TaxJar for specific insights into the best course of action them.