One of the few states in the US without a sales tax on groceries is Washington State. Food and food ingredients meant for human consumption, such as soft drinks, confectionery, and dietary supplements, are referred to as groceries. There are a few exceptions to this rule, though. For instance, sales tax applies to prepared items, such as restaurant meals. Additionally, you will be charged sales tax on any non-food products you buy at the same time as your groceries.
Moving on to eBay, the online marketplace has lately begun applying sales tax automatically to purchases made in some jurisdictions, including Washington. Now that it is required by law, eBay must collect sales tax on behalf of sellers in certain states. This means that you will be required to pay sales tax if you buy something from a seller in Washington on eBay. The location of the seller and the local sales tax rate will determine how much sales tax you will be charged.
A 2018 Supreme Court decision is what forced eBay to start collecting sales tax. Regardless of whether the retailer has a physical presence in the state, the South Dakota v. Wayfair case decision permits states to mandate that online retailers collect sales tax on purchases made by residents of their state. Many states have established laws forcing online businesses to collect sales tax on their behalf as a result of this decision.
And finally, you might be questioning if selling stuff on eBay qualifies as self-employment. Yes, selling on eBay qualifies as self-employment, to answer your question. This implies that you must disclose any money you receive from selling items on eBay on your tax return and pay self-employment tax on that revenue. To make sure that you are appropriately reporting your revenue and deductions on your tax return, it is crucial to maintain track of your sales and expenses associated with your eBay business.
In conclusion, there are several instances where Washington State does apply a sales tax to purchases of food. Due to a Supreme Court decision, eBay is now compelled to collect sales tax on behalf of sellers in some jurisdictions, including Washington. Since selling on eBay is regarded as self-employment, your tax return must accurately reflect your earnings and outgoings.