eBay to Begin Collecting Sales Tax for Minnesota

eBay told sellers on Monday it would begin collecting sales tax next year on transactions where the buyer is based in Minnesota.

eBay had previously informed sellers of its obligation to collect sales tax for other states that enacted what’s known as Marketplace Facilitator laws, stating, “We believe this ruling is unfair to small businesses and will continue to find the best way to support and advocate for our sellers.”

Based on the new laws, eBay will calculate, collect, and remit sales tax for applicable orders shipped to customers in the following states:

Washington—starting January 1, 2019
Minnesota—starting January 1, 2019
Pennsylvania— starting July 1, 2019
Oklahoma—starting July 1, 2019

eBay explained:

“Once we start collecting tax in these states, you do not need to take any action. There are no extra charges or fees for this service. Prior to these dates, please continue to collect and remit tax in these states and comply with any other applicable requirements they impose.

“There are no opt-outs for selling items to the states listed above, or out of eBay automatically collecting sales tax for applicable orders.

“Additional states will likely be added to the above list. Stay informed on the Help pages.

eBay also noted that sellers should consult with their tax advisor for more information. See Monday’s full post on this page.

Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.