EBAY TAXATION POLICY - CHANGES

Tinkrbl44 · ‎08-23-2010

Are you familiar with this? The Ebay User Agreement changed in May with new requirements.

Ebay is now automatically adding tax to invoices .... I just sold something for 4 bucks ..... and the invoice had added $0.28 for tax in their state.

Have you had any discussions with your tax advisor on this policy change?

If so, what did they say? TIA

sunshine45 · ‎03-09-2010

@Tinkrbl44 wrote:
Are you familiar with this? The Ebay User Agreement changed in May with new requirements.

Ebay is now automatically adding tax to invoices .... I just sold something for 4 bucks ..... and the invoice had added $0.28 for tax in their state.

Have you had any discussions with your tax advisor on this policy change?

If so, what did they say? TIA

yes, it was announced last year that ebay would start collecting the sales tax for certain states, with more to follow. ebay will pay it directly to the taxation department of each state.

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section2

also see wayfair vs. south dakota.

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"The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing." - Albert Einstein

sunshine45 · ‎03-09-2010

1099-K forms and income tax on eBay sales

By law, sellers have to declare and pay taxes on income earned from eBay sales. We recommend checking with a tax advisor to understand your responsibilities.

If you’re a managed payments seller, and have more than 200 transactions and generate more than $20,000 in sales in a calendar year, you'll receive a Form 1099-K from eBay. This information will also be reported to the IRS and your state tax authority, where applicable.

Only managed payments sellers will be eligible to receive 1099-K forms from eBay. If PayPal or another authorized payment service processed any of your eBay payments during the calendar year, you may receive a separate form from them if your transactions meet the thresholds.

********************************************
"The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing." - Albert Einstein

Tinkrbl44 · ‎08-23-2010

@sunshine45 wrote:
1099-K forms and income tax on eBay sales

By law, sellers have to declare and pay taxes on income earned from eBay sales. We recommend checking with a tax advisor to understand your responsibilities.
If you’re a managed payments seller, and have more than 200 transactions and generate more than $20,000 in sales in a calendar year, you'll receive a Form 1099-K from eBay. This information will also be reported to the IRS and your state tax authority, where applicable.

Only managed payments sellers will be eligible to receive 1099-K forms from eBay. If PayPal or another authorized payment service processed any of your eBay payments during the calendar year, you may receive a separate form from them if your transactions meet the thresholds.

@sunshine45

Oh good grief ....... well, it was bound to happen sooner or later .......