eBay has started collecting sales taxes in some US states with more to come
eBay has started collecting sales taxes in two US states as of the start of January 2019. Six more are scheduled to join them in the next six months or so and eBay say that they expect more to join that list in due course.
By the middle of the year the eight out of fifty states that will be impacted by these changes are: Minnesota, Washington, Iowa, Connecticut, New Jersey, Alabama, Oklahoma, and Pennsylvania.
From the perspective of British and European merchants, indeed any seller outside of the United States, that this also applies. Vendors outside of the country are still liable and that might mean that you need to consider changes to your listings or pricing.
To find out more and get all the information you need and precise dates for launches in the various states, you can peruse the relevant help page on eBay here. As they say:
Prior to the effective date, you should continue to collect and remit tax in these states if required. Additional states will be added to this list at a later date. Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax. The collection process will apply to all sales, whether the seller is located in or outside of the United States.
And don’t forget that individual states are introducing varying rules for sales taxes in their locale and Minnesota serves as an example there:
Small business exemption – Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.
People in these states will simply stop using eBay as much, I already am planning on sourcing things from somewhere else. I cannot afford a $20 sales tax addition to my total I work very hard for my money.