Today, eBay has a basic U.S. state-level tax calculator that all sellers can use. While this basic tax calculator is sufficient for lower-volume sellers, a more advanced solution is required by higher-volume sellers. To meet these needs, a premium sales tax calculator is now being piloted with a small group of sellers.
Support for global sales. The premium sales tax calculator will provide a range of features including support for advanced sales tax management processes. These features include state, county and city level sales tax in the U.S. and Canada this year.
Support for tax rules. Support for special fees or surcharges (such as the California recycle fee), tax holidays, category exceptions, and automatic update of tax rates and tax rules will also be available.
Sales tax reports. Sellers will receive detailed sales tax reports directly for tax reconciliation purpose.
FREQUENTLY ASKED QUESTIONS
What is changing with the tax calculator?
eBay is testing a new premium sales tax calculator. These features will be tested and rolled out additional sellers based on initial results. In Q1 2011, all sellers who currently work with a Certified Provider for similar features will have access to this functionality on eBay.
What's the difference between the two sales tax calculators?
There are two types of sales tax calculation services that will be available:
Basic tax calculator is a basic US state-level tax calculator that can be used by any seller on eBay today. This system is recommended for sellers who need to calculate taxes but do not need tax exception rules and sales tax reports.
Premium sales tax calculator is a new service eBay will be piloting among a small group of sellers this year. The service may be expanded to include more sellers by Q1 2011. The premium sales tax calculator includes more complex features such as county and city level sales tax, support for tax systems outside the U.S. and Canada, as well as support for tax holidays and special surcharges. Typically, this service will be useful for sellers who need to apply tax exception codes and need to record transactions for sales tax reporting purposes.
What functionality will the premium sales tax calculator offer?
The following features will be available for sellers using the premium sales tax calculator:
Local jurisdiction level sales tax assessment (state, county, city level sales tax)
Support for US/Canadian sales tax
Support for special fees/surcharges (California recycle fee, eWaste fees)
Support for tax holidays and category exceptions
Automatic update of tax rates and rules
Sales tax reports
Is there a charge for the premium sales tax calculator?
No, the calculator is free of charge.
How can I be part of the pilot group?
For the pilot, a very small group of sellers who currently use a third party tax solution are being asked to test the new premium sales tax calculator. Based on their feedback and experience, we will be making refinements to the calculator, and then consider opening it up to a larger group of sellers in 2011. After the initial migration of third party checkout sellers, new qualifying sellers must have total annual sales of $2 million or more and may contact their account manager directly to set up tax services.
Will the calculator work for international sales?
At this point, the premium tax calculator will only support items that are being sold within the United States, within Canada, as well as between these two countries.