Market Facilitator Tax Laws?

[JaBek1]

I'm curious as to what, if anything, eBid is doing with regard to the collection and remittance of sales tax in states that have enacted Market Facilitator laws in the USA. Has anyone heard anything from the boys?

[tony41]

I'm curious as to what, if anything, eBid is doing with regard to the collection and remittance of sales tax in states that have enacted Market Facilitator laws in the USA. Has anyone heard anything from the boys?

I presume this is a problem for US sellers only.

[kodakfish]

I wonder if eBid meet the selling threshold per state? It definitely looks an absolute nightmare and set to destroy ecommerce. A quick google leaves more questions than answers , and people that previously didn't have to pay taxes due to low selling income from sales [ note not talking profit here but total sales price] will now find themselves liable. I assume us in the UK will similarly affected with the governments/EU's digital sales tax that will be passed to us rather than the multinationals ;(

[JaBek1]

I presume this is a problem for US sellers only.

​Actually, no it is a matter of concern for eBid since they are the ones that would be seen as the facilitator and they do business in the US. Whether they would meet the criteria I'm not sure since it varies from state to state. Of course, it isn't a matter of sellers or eBid being taxed, but rather the buyers in those states being subject to the tax and the facilitator being required to collect it.

As the tax laws in most states required that a seller with a nexus in that state to collect sales tax from those customers, but states are now passing market facilitator laws requiring venues such as eBay and Amazon to collect and remit the taxes to the states on sales delivered within those states. Of course, most states already had a use tax statute on the books but it seems were having trouble getting the buyers to pay up. So, with the Supreme Courts ruling some states have opted to put the burden of collection on the platform used by the seller. Currently there are only a few states that have passed the laws but it seems that more are likely to jump on the band wagon.

Since eBid has sellers that ship to these states I'm curious if the boys have looked into the situation. Of course, there is a possibility that eBid doesn't have enough total seller's sales to any of those state to result in it being subject to the law, but I thought that may have a plan in place in case they do.

[JaBek1]

​I don't believe anyone didn't have to pay the sales tax, but rather who had the responsibility for collecting it. It is the buyer that has to pay the tax either through having it collected by the seller and remitted to the state or paying it directly to the states themselves. The new laws in states that have passed them place the responsibility on the platforms that have multiple sellers to collect it and remit it.

A lot of buyers that have been failing to pay it themselves are upset because they are now having to pay the sales tax which they have, up until recently, been evading.

Of course, I'm not sure what legal affect this all has on eBid since they are based in the UK. Frankly, about all the states could do is prohibit eBid from doing business within their borders, I believe. However, I'm not sure.

[KCAuto]

as you say, it is the buyers that are responsible for paying the tax, and yes, the name says it ... 'facilitator' ... that will be required to either collect and remit, or at the least provide a summary to each state requiring this tax containing the transaction information and amounts along with the buyer's information.

i could be wrong tho. the second option re providing states info would be much easier for smaller selling platforms. guess it depends on the wording used in each states laws

[cornishmaid1961]

I know Etsy have recently announced that they are collecting the taxes but what eBid are doing these days I haven't a clue since the newsletters dried up and we hear nothing !

[KCAuto]

i don't know what good it will do as i'm just a newbie-small-fry, but i did email in last night after i joined asking them for information re this tax collection and also re adding package sizes for calculated shipping so buyers shipping cost is charged correctly. we'll see