eBay to collect sales tax for additional US states

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eBay have announced the scheduled collection of the sales tax on their sellers’ behalf for additional US states, beginning from the 1st of October.

The marketplace will begin collecting sales tax on applicable transactions for buyers in Arizona, California, Colorado, Maine, Maryland, Massachusetts, Nevada, North Dakota, South Carolina, Texas and Utah. Additional states will likey to be added as the regulation is slowly penetrating the majority of the US states.

“We are implementing this change because it is a legal obligation for eBay. Sellers may not opt-out of selling items in the states that we are collecting tax, or out of eBay automatically collecting sales tax for applicable orders.”
– eBay.

Sellers that are exempt from paying the tax on their eBay purchases need to visit this page to learn more about the marketplace’s buyer exemption program for tax-exempt buyers such as charitable entities and resellers.

2 Responses

  1. This is good but….
    How do we or more importantly the customs authorities identify from the outside of a parcel/packet that the tax has been paid? The same thing applies to Australia with their GST – eBay have finally started passing the relevant code as part of the address to Click&Drop but don’t display it on any of the eBay documentation (I’ll skip over the fact that they embed it in the middle of the address, not at the top or bottom)

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