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Any experts out there on eBay's new internet sales tax collection and the impact to the seller?

Hey All,

Looking for help with 2 specific things. First, it appears that PayPal is now charging 2.9% for the sale price PLUS the internet tax. I don't think that happened prior to November 1st, maybe I am wrong.

Second, and more importantly, I recently sold a (for me) expensive item with sales tax of over $100. Currently, I have the sales tax sitting in my PayPal account (i.e. it has never been "collected" by eBay like in other transaction). Has anyone else experienced a delay in the sales tax being removed from their account, or is this something I am going to have to pay at year's end?

Thanks for any help!

-Tom

Comments

  • TabeTabe Posts: 5,920 ✭✭✭✭✭

    You won't have to pay the tax. Ebay is doing all the collection for you.

  • jay0791jay0791 Posts: 3,508 ✭✭✭✭
    edited November 12, 2019 3:59AM

    seller knows about ebay collecting the tax.
    So far all my purchases have been collected separately by ebay as well.
    I wonder if buyer is from a exempt state and or exempt due to business and it was collected by mistake,
    if so is buyer trying to get a refund? Tax would go by buyers address. Maybe he has set up a 2nd account n a exempt state and also has one in non exempt.

    I would just sit on the $ in case they find it later. I assume you do not have a Tax and finance number to
    legally collect sales tax and therefor pay it directly like a business would.

    Collecting PSA... FB,BK,HK,and BB HOF RC sets
    1948-76 Topps FB Sets
    FB & BB HOF Player sets
    1948-1993 NY Yankee Team Sets
  • arteeartee Posts: 757 ✭✭✭

    Did you adjust the invoice by entering his state of residence when sending him an invoice prior to him paying? Technically they leave this blank but open to those sellers to fill in that might have a physical presence in said state as well where they would be required to collect sales tax.

    Only thing I can think of because as others have said "ebay does the collecting and paying for you".

  • KbKardsKbKards Posts: 1,782 ✭✭✭

    I’m guessing it’s most likely that you are mistaken and it was either taken out or you already had a small balance that made it look like tax wasn’t taken out. Click on the payment to show the payment details. The second line up from bottom is the eBay removal of the tax. If there’s something listed there then the tax is not still in your PayPal account. If nothing is listed then your sale went to a buyer who is either registered as tax exempt or from a state that currently doesn’t have Ebay collecting tax on sales to their state.

    Payment details

    Purchase Total$200.00 USD
    Sales Tax$16.00 USD
    Shipping Amount$0.00 USD
    Handling Amount$0.00 USD
    Insurance Amount$0.00 USD
    Gross Amount$216.00 USD
    PayPal Fee-$6.56 USD
    Tax collected by eBay-$16.00 USD
    Net Amount$193.44 USD

  • detroitfan2detroitfan2 Posts: 3,311 ✭✭✭✭

    Here is a snapshot of a transaction that was done "properly":

    And here is the snapshot of the transaction where the tax paid by the seller is still in my account:

    In both cases, I had no interaction with the buyer with regards to invoices or similar, they simply did a "buy-it-now" and paid.

    I have finally spoken to both PayPal (who said to call eBay) and eBay (who said they are aware of issues and they are systematically addressing them and to sit tight). The eBay representative also said that PayPal is not supposed to be charging fees on sales tax and that they are working on that (I didn't even ask about that, she just offered).

  • detroitfan2detroitfan2 Posts: 3,311 ✭✭✭✭

    Just an update in case anyone else out there may be in the same situation and don't pay close attention to your emails. It took a while, but finally got this email from PayPal:

    Starting 1 November 2019, PayPal changed how we process taxes that eBay pays on your behalf. There was an error and some transactions were not debited appropriately.

    We will be debiting your account in 10 business days from the date of this email.

    Below are the debit details:

    XXXXXXXXXXXXXX

    Please make sure the necessary funds are in your PayPal account.

    We apologize for any inconvenience this may have caused. Thanks for your understanding. We appreciate your business.

    PayPal

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