If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

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iamblessed
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If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by iamblessed »

If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?
earlyout
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by earlyout »

Sales taxes are governed by the laws of your state and the state(s) where your customer(s) reside. You may have to do a lot of checking.
BuddyJet
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by BuddyJet »

From a quick search, I believe that ebay collects and remits the sales tax.

https://pages.ebay.com/seller-center/se ... ation.html
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JoMoney
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by JoMoney »

My vague and possibly wrong understanding is if you're not a business, you're not able to properly charge and remit sales taxes... It's up to the buyer to ensure they pay appropriate sales taxes on their purchases.
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shess
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by shess »

iamblessed wrote: Sat Dec 21, 2019 8:32 pm If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?
If you're selling used merchandise which previously had sales tax paid, I'm not sure you even need to.
Geezer-Rich
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by Geezer-Rich »

It doesn't matter how much you sell, new or used. eBay collects sales tax on everything .
Helo80
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by Helo80 »

I think on October 1, ebay began collecting sales tax on everything. I mean, I've had to buy small computer parts shipped from china (like $1 or $2) and had to pay sales tax. I don't think it's going into the Chinese sellers pocket books.
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iamblessed
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by iamblessed »

shess wrote: Sat Dec 21, 2019 10:37 pm
iamblessed wrote: Sat Dec 21, 2019 8:32 pm If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?
If you're selling used merchandise which previously had sales tax paid, I'm not sure you even need to.
It is used stuff.
smitcat
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by smitcat »

iamblessed wrote: Sun Dec 22, 2019 11:42 am
shess wrote: Sat Dec 21, 2019 10:37 pm
iamblessed wrote: Sat Dec 21, 2019 8:32 pm If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?
If you're selling used merchandise which previously had sales tax paid, I'm not sure you even need to.
It is used stuff.
Used 'stuff' still requires sales tax where we are - likely where you are as well.
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iamblessed
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by iamblessed »

ebay use to have a rule that if you sold under $600 a year you did not have to pay taxes on it.
02nz
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by 02nz »

Helo80 wrote: Sat Dec 21, 2019 11:25 pm I think on October 1, ebay began collecting sales tax on everything. I mean, I've had to buy small computer parts shipped from china (like $1 or $2) and had to pay sales tax. I don't think it's going into the Chinese sellers pocket books.
Correct. I sell a little on eBay. They didn't use to collect sales tax but do now. And that's true for other sellers as well.
boomer_techie
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by boomer_techie »

iamblessed wrote: Sun Dec 22, 2019 3:21 pm ebay use to have a rule that if you sold under $600 a year you did not have to pay taxes on it.
Don't mix up income tax versus sales tax.

I don't think there's any floor for sales tax. However, you can't collect unless you are registered to do so with your state. At the same time, I doubt states would pursue small time ("yard sale") sellers.

Income tax is due on the first penny of profit. However there are reporting minimums ($400, $600, something like that) that essentially allow one to earn under the minimum tax free.

And oh, there's also self employment tax on your profits.
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by DavidC »

smitcat wrote: Sun Dec 22, 2019 12:45 pm
iamblessed wrote: Sun Dec 22, 2019 11:42 am
shess wrote: Sat Dec 21, 2019 10:37 pm
iamblessed wrote: Sat Dec 21, 2019 8:32 pm If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?
If you're selling used merchandise which previously had sales tax paid, I'm not sure you even need to.
It is used stuff.
Used 'stuff' still requires sales tax where we are - likely where you are as well.
I can only speak for Texas, but in Texas yes the sales of "used" items are taxable just like "new" items. The exception is some "occasional sales" (like an annual garage sale) are exempted from collecting sales tax if certain criteria are met (note that if this exemption applies it also relieves the buyer from having to submit use tax themselves a.k.a. the items truly are sales/use tax free).

As for Ebay, I'm guessing Texas considers Ebay to be the "seller" and therefore required Ebay to obtain a sales tax permit + collect sales taxes on all purchases nowadays (even if the individual offering the item would otherwise fall under the "occasional sales" exemption).
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RickBoglehead
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by RickBoglehead »

If you sell your personal used items, for less than you paid for them, you do not need to worry about collecting sales tax or remitting to the IRS or anyone else. Or declaring the income.
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Flyer24
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by Flyer24 »

Here is another page for guidance on sales tax.

https://www.ebay.com/help/selling/fees ... es?id=4121
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by Flyer24 »

RickBoglehead wrote: Sun Dec 22, 2019 9:56 pm If you sell your personal used items, for less than you paid for them, you do not need to worry about collecting sales tax or remitting to the IRS or anyone else. Or declaring the income.
I think Ebay automatically collects the sales tax from the buyer on all transactions now for applicable states.
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by whodidntante »

iamblessed wrote: Sun Dec 22, 2019 3:21 pm ebay use to have a rule that if you sold under $600 a year you did not have to pay taxes on it.
I don't think Ebay makes tax laws. You're thinking of Amazon. :happy
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by RickBoglehead »

Flyer24 wrote: Sun Dec 22, 2019 10:48 pm
RickBoglehead wrote: Sun Dec 22, 2019 9:56 pm If you sell your personal used items, for less than you paid for them, you do not need to worry about collecting sales tax or remitting to the IRS or anyone else. Or declaring the income.
I think Ebay automatically collects the sales tax from the buyer on all transactions now for applicable states.
So YOU, the Seller, don't have to worry about it, which is what the OP asked.
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Nyc10036
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by Nyc10036 »

iamblessed wrote: Sat Dec 21, 2019 8:32 pm If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?
It should be handled automatically for you.

I just bought something on eBay from someone who was clearly a private individual.
Sales tax was collected.

I am not sure whether the sales tax collected from me went to NJ where I live or NY where the seller lives.

.
boomer_techie
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by boomer_techie »

Nyc10036 wrote: Mon Dec 23, 2019 12:18 pm I am not sure whether the sales tax collected from me went to NJ where I live or NY where the seller lives.
To NJ where you live...

... actually it went to wherever you had the package sent. I bought an item that I needed out of state at my mom's house. At first eBay showed the sales tax for my location, then switched to a different amount once I entered mom's address.
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iamblessed
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Re: If you sell under $500 of stuff a year on ebay do you have to worry about sales taxes?

Post by iamblessed »

whodidntante wrote: Sun Dec 22, 2019 10:56 pm
iamblessed wrote: Sun Dec 22, 2019 3:21 pm ebay use to have a rule that if you sold under $600 a year you did not have to pay taxes on it.
I don't think Ebay makes tax laws. You're thinking of Amazon. :happy
I think you are right.
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