Guides » Financial & Taxes

Sales Tax on eBay: Questions Answered for eBay Sellers

By Mark Faggiano

eBay has started collecting sales tax, but it’s a complex situation. Not all states are covered, and some still require sellers to file their own returns.

Sales Tax on eBay: Questions Answered for eBay Sellers

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Dave S

Very good explanation of the eBay sales tax landscape. One minor correction: If you overcharge sales tax, you are required to remit the excess to the State or refund it to the buyer. Most small volume sellers in most states with facilitator laws can ignore these compliance requirements because they are under the economic threshold.

Don K

Not sure what planet I came from, but from my understanding I don’t need a certificate to be exempt from sales tax collection as a Seller by eBay. I need to be making whatever $ amount each state has required (most are 100k) and/or number of sales per year (100 – 200). I in no way have anything near either and Yet eBay still is charging my customers Sales Tax and taking 12.55% of it from me for themselves (to pay their own taxes??), which is illegal and it’s going to come back and bite them soon enough. https://www.streamlinedsalestax.org/for-businesses/remote-seller-faqs/remote-seller-state-guidance

Andy Geldman

Replying to Don K

The new marketplace facilitator laws mean that the marketplace has to collect sales tax for all the sellers on the platform. You as the seller don’t need to have nexus (economic or otherwise) in each state.

Certificates are about exempting you from sales tax on your purchases, not exempting you from collecting sales tax on your sales.

The page you linked to is about economic nexus. There’s a link there with info for marketplace sellers, which is different.

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