Individual state's taxes

FreqCity
New Community Member

Reverb and eBay are now charging taxes for states and paying that tax on my behalf at year end. Can paypal do that? If not, will all the states be made aware of my sales and come after me?

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2 REPLIES 2

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@FreqCity 

 

PayPal does not do sales tax, that is your responsibility as PayPal has sales tax calculator for you to set up for non-marketplace sales. You need to read up on the law.

 

These guys make it easy to understand:

Shipping & Sales Tax Explained - Avalara

 

The gist of it is: There is a marketplace rule and there are rules for individual sellers with their own website but certain thresholds have to be met for it to be applicable to you. So if you are casual seller that don't even come close to the thresholds of each state, its not such a concern with charging sales tax. Read the site to find out what the thresholds are.


Kudos & Solved are greatly appreciated. 🙂
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FreqCity
New Community Member

Thank you. I'm pretty casual. Guess I'll worry about it if it surfaces.

Mike

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