How To

eBay Tax Settings

For US sellers that charge their buyers a tax for each sale there are several options to choose from that vary from charging a tax in just one state, multiple states or for some larger retailers that charge a tax at the municipal level. 

 

Prerequisites


The following topics should be reviewed before completing this task.

 

Tasks to Complete


Choose your Tax setting below and follow the corresponding steps to configure your ChannelAdvisor and eBay accounts.

  1. Single State Tax
  2. Multiple State Tax
  3. Premium Tax Service (Municipal Tax)
  4. Value Added Tax

Tip: Consider building tax into your prices and offering your products tax free. If charging tax, the multiple state tax option below is the best practice even for single state tax sellers.

 

Single State Tax

When submitting an item to eBay, the posting template allows you to define the tax rate charged and to select the specific state. If you are charging 6% in South Carolina, then you only need to enter a 6 and select South Carolina from the state option menu. Follow the steps below to configure the Single State Tax Setting.


Single State Tax setting on Posting Template

When the item is submitted to eBay, it will include a notation that the tax is charged to residents of South Carolina and will show them the included tax as they process through the transaction. The eBay checkout process will appropriately charge the sales tax percentage to buyers with an address in the state that has been selected. Please note that this only allows a single rate for a single state. If you need to submit for multiple states, see the Tax Table option below.

Tip: Consider implementing the multiple state tax option below. It is easier to make adjustments to your tax settings using the tax table in eBay as opposed to updating your posting templates.

 

Multiple State Tax

The eBay Tax Table option allows for multiple states to be configured for tax collection. It works the exact same as the single state option but allows for a single rate to be configured for each state. These rates are configured in a Tax Table account setting at eBay and are used when new items are listed. Please keep in mind that when the eBay Tax Table option is enabled, single state tax information set at the posting template level will be ignored. Follow the steps below to configure the Multiple State Tax Setting.

  1. Within each posting template check the tax table box (See Image)
  2. Configure the tax table in eBay


Multiple State Tax setting on Posting Template

This will instruct eBay to use the configured Tax Table for all items listed using this posting template and to apply the tax to all buyers from any of the jurisdictions configured for tax collection. The eBay checkout process will appropriately charge the sales tax percentage to buyers with an address in any of the states that have been configured. If you need multiple rates within a single state, see the Premium Tax Service at eBay option below.

 

Premium Tax Service (Municipal Tax)

Premium Tax Service was released by eBay in 2010, and is only available to select eBay US sellers. This tax service is an enterprise grade tax engine based on Vertex O Series. If your business is required to charge taxes at the municipal level then eBay's Premium Tax Service may be suitable for you. Premium Tax will also charge the California Electronics Recycling Fee (eWaste). To request approval for this service, please contact your eBay account manager.

For additional information please visit the eBay Premium Tax Service page.

 

Value Added Tax

Sellers registered with eBay as Business Sellers can submit the appropriate VAT rate with each item and configure that on the Posting Template. Follow the steps below to configure the Value Added Tax Setting.

  1. Within each posting template enter the VAT rate (See Image)
  2. Register with eBay as a business seller


VAT setting on Posting Template

Please Note: If you are not registered as a Business Seller at eBay, any listing including a VAT Rate will be rejected with an error. For countries with different classes of VAT rates depending on the product type, this allows you to clearly identify the product and the rate applicable to it for accurate calculations at eBay and on the transaction for the items in question.

Please Note: If you use the account {{VATTAXRATE}}  tag, note that this will be a value between 0 and 1, not 0 and 100. In order to convert that to the expected value, you should create a business rule to multiply the value by 100. Using a specific value (such as "18") or a custom template tag will not need the adjustment.

For US sellers that charge their buyers a tax for each sale there are several options to choose from that vary from charging a tax in just one state, multiple states or for some larger retailers that charge a tax at the municipal level. 

 

Prerequisites


The following topics should be reviewed before completing this task.

 

Tasks to Complete


Choose your Tax setting below and follow the corresponding steps to configure your ChannelAdvisor and eBay accounts.

  1. Single State Tax
  2. Multiple State Tax
  3. Premium Tax Service (Municipal Tax)
  4. Value Added Tax

Tip: Consider building tax into your prices and offering your products tax free. If charging tax, the multiple state tax option below is the best practice even for single state tax sellers.

 

Single State Tax

When submitting an item to eBay, the posting template allows you to define the tax rate charged and to select the specific state. If you are charging 6% in South Carolina, then you only need to enter a 6 and select South Carolina from the state option menu. Follow the steps below to configure the Single State Tax Setting.


Single State Tax setting on Posting Template

When the item is submitted to eBay, it will include a notation that the tax is charged to residents of South Carolina and will show them the included tax as they process through the transaction. The eBay checkout process will appropriately charge the sales tax percentage to buyers with an address in the state that has been selected. Please note that this only allows a single rate for a single state. If you need to submit for multiple states, see the Tax Table option below.

Tip: Consider implementing the multiple state tax option below. It is easier to make adjustments to your tax settings using the tax table in eBay as opposed to updating your posting templates.

 

Multiple State Tax

The eBay Tax Table option allows for multiple states to be configured for tax collection. It works the exact same as the single state option but allows for a single rate to be configured for each state. These rates are configured in a Tax Table account setting at eBay and are used when new items are listed. Please keep in mind that when the eBay Tax Table option is enabled, single state tax information set at the posting template level will be ignored. Follow the steps below to configure the Multiple State Tax Setting.

  1. Within each posting template check the tax table box (See Image)
  2. Configure the tax table in eBay


Multiple State Tax setting on Posting Template

This will instruct eBay to use the configured Tax Table for all items listed using this posting template and to apply the tax to all buyers from any of the jurisdictions configured for tax collection. The eBay checkout process will appropriately charge the sales tax percentage to buyers with an address in any of the states that have been configured. If you need multiple rates within a single state, see the Premium Tax Service at eBay option below.

 

Premium Tax Service (Municipal Tax)

Premium Tax Service was released by eBay in 2010, and is only available to select eBay US sellers. This tax service is an enterprise grade tax engine based on Vertex O Series. If your business is required to charge taxes at the municipal level then eBay's Premium Tax Service may be suitable for you. Premium Tax will also charge the California Electronics Recycling Fee (eWaste). To request approval for this service, please contact your eBay account manager.

For additional information please visit the eBay Premium Tax Service page.

 

Value Added Tax

Sellers registered with eBay as Business Sellers can submit the appropriate VAT rate with each item and configure that on the Posting Template. Follow the steps below to configure the Value Added Tax Setting.

  1. Within each posting template enter the VAT rate (See Image)
  2. Register with eBay as a business seller


VAT setting on Posting Template

Please Note: If you are not registered as a Business Seller at eBay, any listing including a VAT Rate will be rejected with an error. For countries with different classes of VAT rates depending on the product type, this allows you to clearly identify the product and the rate applicable to it for accurate calculations at eBay and on the transaction for the items in question.

Please Note: If you use the account {{VATTAXRATE}}  tag, note that this will be a value between 0 and 1, not 0 and 100. In order to convert that to the expected value, you should create a business rule to multiply the value by 100. Using a specific value (such as "18") or a custom template tag will not need the adjustment.

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