mircpa Posted January 15, 2020 Report Share Posted January 15, 2020 Hello all I have this question regarding sales tax reporting. Client of mine is online retailer based in IL. He sells stuff on Ebay. Before remitting payment for sales to client, Ebay is deducting their fee & sales taxes & remitting money net of these two amounts. Until now the rule was IL retailer was not suppose to charge sales taxes & take deduction for interstate commerce for sales to buyers of out of state. I am little confused how to report this sales on IL sales tax return. Does this online companies been directed by sales agencies to remit sales taxes recently I am unaware of this. Is anybody aware of any recent changes. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 15, 2020 Report Share Posted January 15, 2020 If I understand correctly, Ebay is holding on to the sales tax amount? Quote Link to comment Share on other sites More sharing options...
mircpa Posted January 15, 2020 Author Report Share Posted January 15, 2020 Correct. Ebay is holding on sales tax amount. Funny part is client is not saying anything regarding sales tax % on listing, but Ebay is deducting XX amount toward sales tax & remitting difference to retailer. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 15, 2020 Report Share Posted January 15, 2020 I remember sometime last year Amazon in IL was required to collect sales, I am thinking either Ebay has to adhere to same rules as Amazon. But as to out of state sales, there shouldn't be any sales collected, however I do see Amazon/Ebay collecting the end-user Use Tax for their respective state. Quote Link to comment Share on other sites More sharing options...
mircpa Posted January 15, 2020 Author Report Share Posted January 15, 2020 Thansk @ILLMAS Should I just continue reporting out of state sales as deduction interstate commerce on page 2 of IL ST-1 and treat taxes collected by Ebay as business expense. Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 16, 2020 Report Share Posted January 16, 2020 22 hours ago, mircpa said: Correct. Ebay is holding on sales tax amount. Funny part is client is not saying anything regarding sales tax % on listing, but Ebay is deducting XX amount toward sales tax & remitting difference to retailer. This happened to my husband when he sold a personal item. He submitted a complaint to ebay and got the money they withheld. Have your client contact ebay. Quote Link to comment Share on other sites More sharing options...
Edsel Posted January 16, 2020 Report Share Posted January 16, 2020 The Supreme Court ruling in 2017 did away with the sales tax exemption on interstate sales for companies over a certain revenue amount - I think $2 million. Giant companies like Amazon were getting away with selling gazillions of dollars outside of Washington and not having to charge sales tax. Quote Link to comment Share on other sites More sharing options...
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