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PayPal and eBay Internet Sales Tax collection update when selling to the US
As of 1 October, there will be some new Internet Sales Tax changes in the United States that could impact your cross border trade business. From the beginning of October, 34 states will now require the collection of Internet 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 for you.
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 our Download order report.
Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action.
We understand that the Christmas selling season is nearly upon us and we are working to make this transition as smooth as possible.
Learn more about Internet Sales Tax in the eBay Seller Center. If you sell to the US and have questions about how these changes to the Internet Sales Tax may affect you, we recommend consulting with your tax advisor.
As always, thank you for selling on eBay
Regards
The eBay Team
