11 new states have adopted Internet Sales Tax policies as of October 1, bringing the total to 34 states that now require the collection of sales tax.
As the impact of this tax law becomes more apparent, PayPal and eBay are making changes that will make Internet Sales Tax collection less complex for buyers and sellers.
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 the Download order report.
Sellers will not have to take any actions for these changes. eBay also reminds sellers that buyers will be responsible for all taxes due.
eBay sellers can learn more about Internet Sales Tax in the eBay Seller Center.
Also, sellers who have questions about how Internet Sales Tax may affect them should contact their tax advisor, or eBay’s partners Avalara and TaxJar.
Sellers who use eBay Managed Payments are not impacted by this change.
What do you think about how eBay and PayPal plan to manage sales tax moving forward?
Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.