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eBay Internet Sales Tax collection

You will learn how eBay collects and remits internet sales tax automatically, and how Bravo reflects this in your transactions and reporting.

As of October 1, 2019 eBay has automatically charged the buyer the Internet Sales Tax. This article will go over how Bravo handles this new functionality presented by eBay.

You can read the full details reported by eBay here.

The Bravo Fee (seen on the monthly invoice) for successful sales will also include the Sales Tax Amount in the calculation for the Bravo Fee. Either at 5% or 2% depending on your store's settings.

When you do a transaction and its across one of the 44 states listed by eBay here. eBay will automatically charge and pay the Sales Tax themselves. The store is not liable for the tax being collected by eBay. As a result, this will not be collected by Bravo either, but it will be referenced in the eCommerce area and on the Packing Slip. Going forward from Bravo version 2.5.2.85, if eBay charges tax you will see next to where it says Sales Tax Amount that the word "eBay" is highlighted in blue. The tooltip says "Tax collected by eBay" to accompany this.

 

  • The Total Amount that is referenced will be the entire amount that the customer paid in order to obtain the item, including the Sales Tax that eBay collected.
  • The Total Charged, is how much the store actually sold the item for plus Shipping.

 

The Internet Sales Tax will only be referenced in two places in Bravo.

  • eCommerce - as seen above
  • The Packing Slip

 

This currency does not go through the store and is completely handled by eBay. The store does not need to account for it.

There will be a few reports that contain this sale information. So make sure that you account for the correct amount of Taxable Sales.

Sales Accounting Report

For instance, on the top portion of the Sales Accounting Report, we have the sale from above showing on the date it sold under Taxable Sales and underneath that we have the Tax Authority Section showing that there was a Tax Exemption for "eBay Paid Tax" to show that your store is not responsible for the tax.

 

 

End of Month Report

Similarly, on the End of Month report, it will show the Sale as being taxable under the Sales section even though the tax is not collected by the store, because eBay is collecting that tax.

You can read the full details reported by eBay here.