Tax Information

There may be legal implications, fees and tax obligations associated with using eBay. Remember that it’s your responsibility to understand and comply with relevant laws and regulations, and that you have to pay relevant fees and taxes. Our full policy explains how and when eBay charges applicable taxes, and provides additional guidance on your tax obligations, but we recommend you talk with a tax professional if you have any questions.

If you are selling on eBay as a business, we strongly recommend seeking professional advice about your tax obligations. You can also review the eBay Tax policy in the Help Hub.

You can refer them to the eBay Tax policy in the Help Hub. Our full policy explains how and when eBay charges applicable taxes.

Yes, we have a buyer exemption system that allows you to submit tax exemption certificates to eBay and make purchases without paying tax. Upload your tax exemption certificate here. See here for more details.

We’re developing reporting and exploring partnerships with tax service providers to help sellers with their sales tax obligations. For more information on these new tax requirements, we recommend consulting with your tax advisor. If you don’t have one, please contact our partners Avalara and TaxJar for specific insights into the best course of action for you.

Each state and jurisdiction have different sales tax rates. eBay determines the tax rate based on the ship to address and the items purchased.

Each state’s legislation dictates if shipping and handling are taxable or not. In those states where eBay is collecting tax, we will collect tax on shipping and handling where applicable.

Sellers are generally required to collect sales tax in any state where they have a physical presence, which has been the case even before the recent Supreme Court decision. As of October 1, 2019, 34 states will require the collection of sales tax. In addition, if a seller meets any of the new economic nexus standards in other states, they would need to collect and remit sales tax in those states as well. Sellers should consult with their tax advisor about tax obligations for each state as the rules may vary on a state-by-state basis. If you use platforms other than eBay for selling, you may need to aggregate all of your sales into a state to determine if you have crossed that states threshold for economic nexus.

Please visit our Help page and look for updates on Seller News.

If a seller provides the buyer with a discount, the tax will adjust accordingly. The tax will be calculated on the discounted price provided by the seller.

We’re in the process of updating the Tax Table to provide this functionality for our sellers.

Final value fees are calculated on the total amount of the sale. Please refer to our fees pages for more information.

No. eBay only collects and remits Internet Sales Tax on the sale price of your items.

Depending on tax legislation where you live and where your buyer lives, sales tax, Value Added Tax (VAT), Goods and Services Tax (GST), or similar consumption tax may apply to items you sell on eBay. Whether it’s included in the listing price or added at checkout depends on both the item’s location and the buyer’s shipping address.

Your sales on online marketplaces like eBay are considered reportable income once they are over a certain amount. Because eBay processes payments for these sales, IRS regulations require us to issue a 1099-K for US sellers who sell $20,000 or more in 2021 and $600 or more in 2022. When calculating your taxable income for your income tax return, you should consider the amounts shown on your 1099-K.

Not necessarily. Just because you receive a 1099-K doesn’t automatically mean that you’ll owe taxes on the amount reported on your 1099-K. The 1099-K shows your gross receipts, but you are taxable on your net income.

Only goods that are sold for a profit are considered taxable, so you won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year, and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax.

Please consult a tax professional if you have any questions about any tax filing or regulations.

If you have multiple eBay accounts associated with the same SSN or ITIN, your thresholds are calculated by combining all payment transactions for the year. If your combined sales exceed the above thresholds, you’ll receive a 1099-K for each account, even if one or more of the individual accounts do not exceed the IRS reporting thresholds.

Here’s some general IRS FAQs on this topic.

Yes. 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. If your item’s being sent using the Global Shipping Program, eBay will inform the buyer about import charges and these will be included in the order total at checkout.