Sales Tax Questions
Beginner Quick Answer

Does eBay collect and remit sales tax for sellers?

⚡ TL;DR

Yes — eBay collects and remits sales tax for sellers across all 45 states with a sales tax, completing its rollout by 2020. eBay's collection covers only eBay transactions; your own website sales and other channels are your responsibility. In most states, eBay sales also count toward your economic nexus threshold.

Yes. eBay is a marketplace facilitator and collects and remits sales tax on behalf of sellers for all transactions in US states with a general sales tax.

Sellers on eBay don’t configure tax collection for eBay transactions or receive buyer tax payments directly, eBay handles it at checkout and remits to each state. eBay provides sellers with an annual transaction report reflecting what was collected.

What changed and when

Prior to marketplace facilitator laws, eBay sellers in states where they didn’t have a permit were technically required to collect sales tax but in practice often didn’t. States found enforcement impossible at the seller level.

As states enacted marketplace facilitator laws starting in 2019, eBay began collecting in each state as the law took effect. By 2020, eBay was collecting across all 45 states with a sales tax.

The standard caveats

eBay’s collection covers eBay transactions. It doesn’t cover:

  • Sales through your own website or Shopify store
  • Sales through other platforms where you’re the seller of record
  • Your registration obligations in states where you have physical nexus
  • Your economic nexus threshold, eBay sales count in most states

For sellers who only sell on eBay and have no other channels or physical presence in any state, eBay’s collection largely covers their compliance exposure (with the threshold-counting caveat). For sellers using eBay alongside other channels, the same analysis applies as with any marketplace facilitator.

One note for high-volume eBay sellers

eBay sellers with significant sales volume should verify their threshold status in key states. Even with eBay collecting on every eBay transaction, crossing the $100K threshold in a state can mean you have an obligation for any direct-channel sales in that state: a compliance gap if you’re also selling elsewhere and haven’t registered.

Related: What is a marketplace facilitator law, and does it apply to me? | Do Amazon and Etsy sales count toward my state nexus threshold?

Frequently asked questions

Does eBay collect sales tax for sellers?
Yes. eBay is a marketplace facilitator and collects and remits sales tax on behalf of sellers for transactions in all US states with a general sales tax. eBay handles this automatically, sellers don't configure tax collection for eBay transactions or file returns for eBay sales.
When did eBay start collecting sales tax?
eBay began collecting sales tax state by state as each state's marketplace facilitator law took effect, starting in 2019. By 2020, eBay was collecting in all states with a sales tax.
Do eBay sales count toward my economic nexus threshold?
In most states, yes. Even though eBay collects the tax, your eBay sales typically count toward your economic nexus threshold in each state. Crossing $100K in combined sales (including eBay) can create a nexus obligation for direct-channel sales.
Does eBay's collection eliminate my registration obligation?
Not if you have physical nexus in a state or sell on other channels. Physical presence creates a registration obligation regardless of eBay's collection. And eBay's coverage applies only to eBay transactions, not to your own website sales, Shopify store, or other channels.

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