How to Charge Sales Tax on eBay

Consult a tax professional to find out if you should be charging sales tax.

If you plan on selling items on eBay, it is important that you list your items properly to avoid potential problems--not only from eBay, but from Uncle Sam as well. Certain states require eBay sellers to collect sales tax on the items they sell. If you're not sure about your state's laws regarding this issue, you should consult with a tax professional before listing your items. It's better to do things right the first time, as you may have to pay interest and penalties if you fail to follow your state's tax laws.

Instructions

1. Start a new eBay listing.

2. Click on the "Edit listing" selection.

3. Scroll down until you see the section that contains sales tax information.

4. Find the tax rate for your state (see the Resources section of this article). Choose your state from the drop-down list, and then enter the correct sales tax amount.

5. Click inside the "Also apply to shipping & handling costs" box if you are supposed to charge tax on those items as well.

6. Click "Continue" to save your new sales tax information. Finish your listing and choose "List Your Item" to post it to eBay. Buyers will now be charged for sales tax when they purchase your item.

References

• eBay Tax Table

Resources

• Tax Foundation