How to collect sales tax on eBay and use a Tax Table

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This article will help you understand how to collect sales tax on your eBay listings, and when you should use eBay's Tax Table option.

Sales tax rates can be set in eBay on each individual listing, or globally by using a tax table.  

When set on an individual listing, only one state (jurisdiction) can be chosen. So seller's that need to collect sales tax in more than one state/jurisdiction should use a tax table.

Setting Sales Tax on a Listing

In Sellbrite, you can configure your sales tax settings on the Edit Listing page, or by saving the settings in a listing preset and applying the preset to your draft or active listings.

 

Setting up a Tax Table

To set up a tax table, login to your eBay account and follow these steps:

  1. Go to My eBay > Account > Site Preferences.

  2. Click Show in the Payments from buyers section.

  3. Click Edit in the Use sales tax table section.

  4. Fill in the sales tax rate for any state where you want to charge sales tax. If you're also required to tax shipping and handling in that state, select the Also charge sales tax on S&H check box.

  5. Click Save.

Using a Tax Table with Your Listings

A tax table for a seller is a global preference. As such, changes to it take effect immediately. However, changes to a tax table do not affect active listingsThis means that if you have active listings using the standard Sales Tax settings, they would need to be revised or relisted in order for the Tax Table to be applied instead.

After creating a tax table, choose the option in Sellbrite on your eBay listings (or eBay listing preset) to charge tax according to the tax table.

In general, when an item is revised or relisted, the following rules apply:

  • If no tax was originally specified for the item, the item remains without tax.
  • If tax was specified for the item via the standard Sales Tax settings, then:
    • if a tax table exists for the user and site, the tax table is applied.
    • if no tax table exists (or the tax table has been cleared), the standard Sales Tax settings are applied.
  • If tax was applied via tax table (like in screenshot above), then:
    • if a tax table exists for the user, the tax table is applied.
    • if no tax table exists (or the tax table has been cleared), no taxes are charged.

One exception when revising items is that tax details cannot be changed for active listings that already have bids.

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