E-Bay/PayPal Sales Tax Question

[bcbgcbrcb]

I have inquired before and been told that the 200 transaction/$20,000 IRS reporting via PayPal includes not only the item purchase price but also shipping charges as well. What about sales tax, which is part of the total invoice amount paid by the buyer but e-bay handles the collection and distribution of those monies? Does the seller end up having that tax portion added to their $20,000 aggregate for the year or is that excluded?

It's very tough to get a hold of anybody at PayPal at this point so that's why I am asking here.

[Bicem]

Total gross $'s inclusive of shipping, sales tax, etc is reported.

(Then it's up to you to declare the actual profit made on the gross sales)

[D. Bergin]

I had a real hard time finding the sales tax collected by Paypal and remitted to Ebay without going and reviewing each individual invoice.

It's been a couple months since I've done my taxes so if my memory serves me correct, there was only a couple months there when the remittance went from being collected directly by Ebay to being funneled through Paypal AND THEN to Ebay (it's like another fee......hooray!), so I didn't have a ton of invoices to go through, since I was pretty slow then anyways.

Anyways, it was way more complicated to find the numbers then it should have been. I really hope they get the reporting streamlined for next year.

[bcbgcbrcb]

Thanks, Jeff.

[Santo10Fan]

I can't help you with the details, but consensus is the messy eBay Paypal divorce is currently a sh*tshow that is soon to be finally done. I've been trying to get into integrated payments for a year but have heard nothing back.

[cardsnstuff]

Total gross $'s inclusive of shipping, sales tax, etc is reported.

(Then it's up to you to declare the actual profit made on the gross sales)

Are you sure? I had called paypal when this first started and they told me all monies {except f&f} are included in the 1099. I haven't done my 2019 taxes yet so I can't for 100% verify this, yet. If you see your paypal transactions I believe it's recorded as "tax collected by partner" so you can separate it out.

[Bicem]

Just going off of what's stated on PayPal's site which sounds consistent with what they told you on the phone.

https://www.paypal.com/us/webapps/mpp/irs6050w