Depending on where the buyer is located, Washington State has different sales tax rates. Local sales taxes are in addition to the state’s 6.5% sales tax. With an average of 8.89%, the total sales tax rate can range from 6.5% to 10.4%. On the website of the Washington State Department of Revenue, buyers in that state can look up the current local sales tax rate.
In Washington State, there are several things that are not subject to sales tax. These consist of household goods, prescription medications, and specific medical equipment. Additionally, if the tangible personal property is delivered outside of Washington State, transactions to nonresidents may be exempt from sales tax.
On January 1, 2018, eBay began to collect sales tax in Washington State. This was in response to the new state law that mandates the collection of sales tax on behalf of merchants through online marketplaces. In over 30 states across the United States, eBay now collects sales tax.
The barrier is $20,000 in gross sales and 200 transactions within a calendar year, and it will go into effect in 2021. You must declare your sales to the IRS and pay taxes on your earnings if you reach either of these criteria. To maintain compliance with tax rules, it’s critical to keep track of your sales and speak with a tax expert.
In conclusion, eBay has been collecting sales tax in Washington State since January 1, 2018. The percentage of sales tax varies according on the buyer’s location, and some items are free from sales tax. In over 30 states across the United States, eBay also collects sales tax. In order to ensure compliance with tax rules, eBay sellers should maintain track of their sales and speak with a tax expert.