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EBAY Sales Channel Tax question

country_puppy
Shopify Partner
1 0 0

Hi,  Today I sold a product on eBay that was advertised via the Shopify Marketing Channel.  The customer was charged a tax (9.5% Really?) by eBay and when looking on eBay it clearly states 

___________________________________________________________________________________________________________

Item subtotal$20.00
Shipping$0.00
Sales tax**--
Discount$0.00
Total$20.00
**We collect and remit tax to the tax authority in accordance with applicable state law. You don't have to pay it to the state.
__________________________________________________________________________________________________________
Shopify then reports the following:
 
Paid
Subtotal1 item$20.00
ShippingePacketChina (0.0 lb)$0.00
TaxSales Tax 9.5%$1.90
Total$21.90

Paid by customer$21.90
 
___________________________________________________________________________________________________________
 
Paypal Says
 
Payment details
Purchase Total
$20.00 USD
Sales Tax
$0.00 USD
Shipping Amount
$0.00 USD
Handling Amount
$0.00 USD
Insurance Amount
$0.00 USD
 
 
 
Gross Amount
$20.00 USD
PayPal Fee
-$0.88 USD
Net Amount
$19.12 USD
 
___________________________________________________________________________________________________________________
 
 
It looks like Shopify thinks I collected the tax.  My Question is will Shopify report that I received tax proceeds?
 
To Make Matter Worse, ALIEXPRESS charged me a tax as well.
________________________________________________________________________________________________________________
Invoice
Supplier name My T-shirts Store Customer Name US shopper

Transaction Quantity Price Sales Tax Rate Sales Tax Amount Total inclusive of Sales Tax

1 8.50 9.500 % 0.81 9.31
Total amount in USD 0.81 9.31
*As required by the relevant State Sales Tax Laws, the marketplace facilitator is required to collect Sales Tax and remit to the relevant tax authorities.
_________________________________________________________________________________________________________________
So how do shop owners work with this mess?
 
How do others deal with Sales Taxes on Shopify Stores?
 
Replies 5 (5)
Mark_Chetwynd
New Member
7 0 0

Did you ever get any answers about this.  I sell on eBay via the inkfrog app and have a similar issue.  eBay collects the tax when needed and is supposed to take care of everything.  Sellers are not supposed to have to deal with anything related to the tax for the states that require it.  However, that tax has been coming through the inkfrog app and shows as income in Shopify, but I never actually see that money.  The money deposited into PayPal does not include the collected tax.  inkfrog keeps telling me they are looking into it, but I'm still seeing it.  All these taxes are adding up and increasing my income, even though it's never deposited.  Very frustrating. 

Linda_Solomon
New Member
9 0 0

I have had the same problem and Ebay nor Shopify can clarify this to me. I collect sales tax in Virginia, so when a customer buys through my website I collect the tax and submit it to the state. Ebay said they are collecting for every state they are required to so if a sale comes through my store from Ebay from Virginia I was told by Ebay not to submit the tax because they are submitting it. My question is when I file my tax forms each month they ask for total sales and sales outside the state so it calculates what I owe. If I include the sales from Ebay that was purchased from Virginia and they are already submitting the taxes than its like the state is double dipping. I can't get a straight answer if I consider it out of state since Ebay is collecting it. This has become very confusing.

Mark_Chetwynd
New Member
7 0 0

I use inkfrog and they claim to have finally fixed it so that the tax isn't coming into my Shopify sales now.  It took a few emails back and forth with them, but so far it seems like they are removing the tax.  However, I did just receive an email from eBay and PayPal stating that they will be changing how they are billing customers the tax, so I'm sure this will now mess up the fix that inkfrog just implemented. 

Linda_Solomon
New Member
9 0 0

I wish everyone had thought about how this was funneling through before all these states were mandating sales tax. This is a real mess.

lightbarparts
New Member
2 0 0

Hi Mark,

I realize this is an old thread however I believe the fix for Inkfrog sending sales taxes to Shopify and overstating income is addressed in the attached link.  Simply omit sales taxes from eBay for each state: https://inkfrog.wixanswers.com/en/article/shopify-connection

Happy Selling!

Regards,

Dave