Last night I had two small sales (one to TX; one to IL) involving eBay-collected sales tax:
The eBay invoice I sent the buyer for the TX sale showed the 8.25% TX sales tax to be $2.89 (8.25% of the $35 sale price). The PayPal payment notification I received showed the actual sales tax collected to be $3.57 (8.25% of both the $35 sale price plus the $8.25 shipping cost).
The eBay invoice I sent the buyer for the IL sale showed the 6.25% IL sales tax to be $0.94 (6.25% of the $15 sale price). The PayPal payment notification I received showed the sales tax collected to be $1.42 (6.25% of both the $15 sale price plus the $7.65 shipping cost).
Why is eBay telling buyers (via eBay invoice) that sales tax applies only to purchase price, while PayPal collects sales tax on both purchase price AND shipping cost?
