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Taxes and import charges

When you sell on eBay, you're responsible for complying with all applicable tax laws. If you're selling to buyers outside of Canada, you should inform them about the potential import charges they'll need to pay when they receive their item.

Sellers' tax responsibilities

You are responsible for paying all fees and taxes associated with using eBay as an eBay seller. For more information on eBay's tax policy and your obligations, see our Tax policy and User Agreement.

Your tax-related responsibilities may include:

  • Paying sales tax on eBay sales
  • Paying income tax on eBay sales
  • Informing overseas buyers about import charges

In June 2018, the United States Supreme Court removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on retailers. Regardless of where you're physically located, if you do business in certain states, those states may require you to collect applicable taxes on your transactions.

For more information on these new tax requirements, we recommend that you consult with your tax advisor. If you do not have a tax advisor, you may want to reach out to Avalara and/or TaxJar.

Charging sales tax on eBay sales

If you're required to charge sales tax, you can set up a tax table and apply it to your listings. We'll then add the tax to the buyer's total at checkout. You're responsible for paying the sales tax to the appropriate authority.

Contact a tax professional to determine whether you need to charge sales tax on your eBay sales, or if you have questions about any other taxes. We can't provide tax advice or guarantee that our sales tax features meet all tax requirements.

Setting up a tax table

You can specify a sales tax rate for each province in which you're required to charge sales tax. You can also charge tax on shipping and handling, if it's required by law.

Buyers see your tax rates on the listing page. Once they confirm their shipping address at checkout, we automatically calculate the sales tax amount and add it to their order total.

Here's how to set up your tax table:

  1. Go to Site Preferences in the Account section of My eBay.
  2. In the Payments from buyers section, select Show.
  3. Select Edit in the Use sales tax table section.
  4. Fill in the sales tax rate for any province where you want to charge sales tax. If you're also required to tax shipping and handling in that province, select the Also charge sales tax on S&H check box.
  5. Select Save.

Important things to keep in mind when setting up a tax table:

  • When you list your item you need to indicate that you charge sales tax in the listing form and associate your tax table with the listing.
  • Changes that you make to your tax table won't be reflected in your live listings. You will need to revise any current active listings in order for your tax table changes to apply to those listings. Listing created after you have saved your tax table changes will reflect your tax table updates.

Once you've created your tax table, you need to specify in your listing that you are charging sales tax. Here's how:

  1. On the listing form, check the box beside Charge sales tax according to the sales tax table.
  2. You can open and make changes to your tax table by selecting View sales tax table.
  3. Complete your listing and select Preview listing or Save and continue later.

eBay sales tax collection

Based on applicable tax laws, eBay will calculate, collect, and remit sales tax on behalf of sellers for items shipped to customers in the following states:

State

Effective Date

Additional Information

Minnesota

January 1, 2019

Minnesota - opens in new window or tab

Small business exemption - Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.

Washington

January 1, 2019

Washington - opens in new window or tab

Iowa

February 1, 2019

Iowa - opens in new window or tab

Connecticut

April 1, 2019

Connecticut - opens in new window or tab

District of Columbia

May 1, 2019

District of Columbia - opens in new window or tab

Nebraska

May 1, 2019

Nebraska - opens in new window or tab

New Jersey

May 1, 2019

New Jersey - opens in new window or tab

Idaho

June 1, 2019

Idaho - opens in new window or tab

New York

June 1, 2019

New York - opens in new window or tab

Alabama

July 1, 2019

Alabama - opens in new window or tab

The State of Alabama has a program for simplified sellers use tax (SSUT) under Statute § 40-23-192. eBay has collected simplified sellers use tax on taxable transactions delivered into Alabama and the tax of flat eight percent (8%) will be remitted on the customer’s behalf to the Alabama Department of Revenue.

eBay Inc. – SSUT Account Number: SSU-R010250382

Arkansas

July 1, 2019

Arkansas - opens in new window or tab

Indiana

July 1, 2019

Please contact the Department of Revenue - opens in new window or tab for further information.

Kentucky

July 1, 2019

Kentucky - opens in new window or tab

New Mexico

July 1, 2019

Please contact the Taxation and Revenue Department - opens in new window or tab for further information.

Oklahoma

July 1, 2019

Oklahoma - opens in new window or tab

Pennsylvania

July 1, 2019

Pennsylvania - opens in new window or tab

Rhode Island

July 1, 2019

Please contact the Division of Taxation - opens in new window or tab for further information.

South Dakota

July 1, 2019

South Dakota - opens in new window or tab

Vermont

July 1, 2019

Vermont - opens in new window or tab

Virginia

July 1, 2019

Virginia - opens in new window or tab

West Virginia

July 1, 2019

West Virginia - opens in new window or tab

Wyoming

July 1, 2019

Wyoming - opens in new window or tab

California

October 1, 2019

Please contact the Department of Tax and Fee Administration - opens in new window or tab for further information.

North Dakota

October 1, 2019

Please contact the Office of State Tax Commissioner - opens in new window or tab for further information.

South Carolina

October 1, 2019

South Carolina - opens in new window or tab

Texas

October 1, 2019

Please contact the Texas Comptroller of Public Accounts - opens in new window or tab for further information.

Utah

October 1, 2019

Please contact the State Tax Commission - opens in new window or tab for further information.

Prior to the effective date, you should continue to collect and remit tax in these states if required. Additional states will be added to this list at a later date.

Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax. The collection process will apply to all sales, whether the seller is located in or outside of the United States.

When a buyer purchases an item on eBay, and the ship to address is one of the above states, eBay will calculate and add the applicable sales tax at checkout. The buyer will pay both the cost of the item along with the sales tax. eBay will collect and remit the tax.

Sellers are not able to opt out of selling items into the states listed above or opt out of eBay automatically collecting sales tax.

Informing overseas buyers about import charges

When you sell to buyers outside of Canada, import fees (including taxes and customs charges) will apply for the country you're sending the item to.

The fees are usually based on the item's price, shipping weight, dimensions, and country of origin, plus any taxes, duties, and fees from the country you're sending the item to.

Buyers are responsible for paying import fees, usually as part of clearing their parcel through customs or when they receive their item. If you offer international shipping, you can't include these costs in the item's purchase and shipping price. Make sure to let international buyers know this in your listings.

Some countries and jurisdictions require eBay to collect import tax from the buyer when they pay for their order. You'll find more details in our Tax policy.

When you list your item you need to indicate that you charge sales tax in the listing form. It's up to you to pay applicable taxes on eBay sales.

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