I just had a sale on my store through the ebay channel. The customer was charged sales tax. However, the amount deposited to my paypal account was without sales tax. I am just wondering where that sales tax went? Any ideas? I have three sales on ebay. The first two no sales tax was even charged. I'm a little confused with taxes and if I should be charging them at all. I am a Canadian seller and the sales were to the US. Any help would be appreciated. Thanks!
Good question. I am currently trying to figure this out myself. I use inkfrog to connect my shopify store to eBay. eBay is sending the tax to inkfrog and inkfrog is passing it along to shopify. However, I am not actually seeing the tax money. inkfrog says they are looking into it, but it's been a few months now. So as it stands now, the new eBay tax is being added to my Shopify income, but I'm not actually getting the money, as eBay is removing it before they make the deposit in my account. Very frustrating. We are based in the US.
Have you found any info on this?
Are you using inkfrog? If so, they added a setting to allow the tax to come through or not. It can be turned on and off. This only shows on the invoices for me though, not in my Shopify sales (income). I originally though the tax coming through was going to be an issue, but it not added to my Shopify income, only my eBay income, which shows in Shopify as manual (I think), so it's separate. It's my understanding the tax is included in eBay's 1099, which you then need to claim as an expense.