eBay notified sellers it will begin collecting sales tax on transactions made to buyers located in three states: Washington, Pennsylvania, and Oklahoma - but not until 2019.
eBay lags behind Amazon and Etsy, which began collecting and remitting Washington sales tax for 3rd party sellers on January 1, 2018, and also began collecting for transactions in Pennsylvania and Oklahoma this year.
eBay didn't give a reason why it is not already collecting sales tax on transactions in those states under their Marketplace Facilitator laws, but presumably it's because unlike on Amazon and Etsy, buyers don't pay eBay - they pay the seller. But that's changing as eBay rolls out managed payments.
eBay said sellers cannot opt-out of selling items into Washington, Pennsylvania, and Oklahoma: "There are no opt-outs for selling items into the states listed above, or out of eBay automatically collecting sales tax for items shipped to the states above."
The implication was that sellers might wish to avoid dealing with buyers in those states, although many small sellers actually favor the marketplaces handling sales tax on their behalf, especially those who sell exclusively on marketplaces.
eBay also offered this advice to sellers in Thursday's post: "Prior to these dates, please continue to collect and remit tax in these states and comply with any other applicable requirements they impose." But keep in mind it may be better left to sellers to determine if they are obligated to collect any state's sales tax.
eBay also announced it partnered with Avalara and TaxJar, which provide sales-tax services to online sellers, but didn't disclose if it benefits financially from referring sellers to those companies.
We recently tackled the sales-tax issue in this month's Update newsletter, "Online Sellers Stumped over Sales Tax Collection" (
September 8, 2018). It has more information, but no easy answers for small and medium sized sellers.
You can read eBay's
full announcement here. It may also behoove sellers to review eBay's tax policies, found on
this help page.
Update 12/29/18: Be sure to see that help page for the latest information!