Multi-State – eBay Starts Collecting Sales Tax With More States To Come

eBay announced in October it would begin collecting sales tax in 4 states in 2019 due to new laws that extend the tax collection obligation to marketplaces (known as Marketplace Facilitator laws). Note that online marketplace Etsy had already begun collecting such sales tax in 2018.

eBay began collecting sales tax on January 1, 2019, for transactions where buyers are based in Washington and Minnesota, and it said it would begin collecting sales tax in Pennsylvania and Oklahoma beginning July 1, 2019.

But states have been busy passing legislation in the wake of the Supreme Court’s June 2018 “South Dakota vs Wayfair” ruling, and eBay has added to the list of states for which it said it must collect sales tax.

“Based on applicable tax laws, eBay will calculate, collect, and remit sales tax on behalf of sellers for items shipped to customers in the following states,” it wrote on its help pages, and listed the following 8 states along with the dates it would comply: Minnesota, Washington, Iowa, Connecticut, New Jersey, Alabama, Oklahoma, and Pennsylvania.

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by Ina Steiner
January 4, 2019