eBay message below received today. Merchant IDs are a way to track the sales tax you owe to your state if the are one of the ones that passed an Internet Sales Tax law. The states could come after sellers on websites since sellers are responsible for collecting sales taxes under these new state laws.
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As you may be aware, 11 new states have adopted Internet Sales Tax policies as of October 1, bringing the total to 34 states that now require the collection of 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 Orderdetails 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 holiday 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 have questions about how Internet Sales Tax may affect you, we recommend consulting with your tax advisor, or our partners
Avalara and
TaxJar.
