According to received information that from January 1, 2020, eBay will collect Internet Sales Tax for applicable transactions in Hawaii, Illinois, Wisconsin, and Michigan in accordance with regulatory requirements. For states where eBay collects and pays Internet sales taxes, sellers do not need to take any action.
For those states where eBay collects Internet sales tax by law, no matter where the seller or item is located, after the implementation time of each state, if the buyer's location is in the above state applicable to Internet sales tax, eBay will automatically calculate the Internet sales tax payable for each transaction, and the tax amount is displayed on the payment page. The Internet sales tax will be paid by the buyer and collected and paid by eBay.
eBay does not charge sellers additional fees for this service. Before these official implementation dates, please continue to collect and pay relevant applicable taxes in these states and comply with any other applicable tax regulations in these states.
Here are the states that currently have or are about to levy an Internet sales tax, and when it will take effect. Other states may join the ranks. Be sure to check the help page on the eBay site frequently for new information.
Still in doubt? Let ’s see if you have any questions below?
Q: Which orders are subject to Internet sales tax?
A: Regardless of the location of the seller or the location of the item, after the execution time of the above states, as long as the buyer's location is in the above-mentioned state where the Internet sales tax is applicable, the transaction will be subject to Internet sales tax.
Q: As a seller, do I need to calculate, collect and pay Internet sales tax on my own?
A: eBay will automatically calculate the internet sales tax receivable for applicable transactions and display the tax on the payment page. The tax will be paid by the buyer and collected and paid by eBay.
Q: As a seller, do I need to set up an Internet sales tax on my eBay account?
A: After eBay starts collecting Internet sales tax in applicable states, sellers do not need to make extra settings on their eBay account.
Q: As a seller, do I need to include Internet sales tax in the price of the item?
A: The seller does not need to include the Internet sales tax in the price of the item. eBay calculates based on the seller's item price and the corresponding sales tax rate of the Internet in the buyer's state, and displays it on the payment page.
Q: Will more US states join the list of Internet sales tax collections in the future?
A: Other states in the United States may also join and implement Internet sales taxes. Be sure to check the help page on the eBay site frequently for the latest information