In June 2018, a US Supreme Court decision removed the requirement for retailers to have a physical presence in a state in order for that state to impose sales tax on these retailers.
Some states have extended the tax collection obligation to marketplaces. This means that regardless of where you’re physically located, if you sell to buyers in certain US states, those states will require the collection of applicable taxes on your transactions.
As a seller, you will not need to take any action. eBay will calculate this new sales tax, charge buyers, and remit sales tax for orders shipped to customers in the following states on the following schedule:
- Washington—Starting January 1, 2019
- Minnesota—Starting January 1, 2019
- Iowa—Starting February 1, 2019
- Connecticut—Starting April 1, 2019
- New Jersey—Starting May 1 2019
- Alabama—Starting July 1, 2019
- Pennsylvania—Starting July 1, 2019
- Oklahoma—Starting July 1, 2019
Additional states will likely be added to the list above—you can stay informed by viewing the US Taxes and Import Charges help page.
If you have any questions about these new tax requirements, we recommend that you consult with your tax advisor.
Have questions? Ask our community.
