How to Setup your Tax Rate on eBay

In the United States, sales tax depends on two important concepts: nexus which means the business has a “nexus” or tax presence in a particular state or states, and origin-based or destination-based tax. If you’re ready to establish your business entity, work closely with a qualified attorney and tax professional who can advise you on the best practices for building a solid foundation for your company.

With the eBay Tax table, you can specify a sales tax rate for each US state in which you’re required to charge sales tax. You can also charge tax on shipping and handling if it’s required by law. Buyers see your tax rates on the listing page. Once they confirm their shipping address at checkout, eBay will automatically calculate the sales tax amount and add it to their order total.

Now let’s walk you through how to do it on eBay.

 

 

 

Setup your Tax Rate

1. Log in to your eBay Sellerhub account at www.ebay.com/sellerhub

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2. Once you’re in, click My eBay located at the top-right of the page. 

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3. On My eBay summary, click the Account tab

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4. Under Account Preferences, click Site Preferences.

 

 

 

 

5. Scroll down and look for the Payment for Buyers section then click the Edit link on the right in line with the Use Sales Tax Tables. 

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6. So this is the Sales Tax Table. This is where you will be specifying the tax rate that you will be charging each state. If it’s grade out, then it means that eBay is the one doing it for you. It’s optional if you will be charging tax for shipping and handling. Just make sure to check the box. 

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7. After you have indicated all the tax rates, then scroll down to the bottom and click the Save button. 

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You should receive a notice that it has been saved. You now will have the ability to charge your customer taxes on your new listings. 

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So that is how you set up your tax rates on eBay.

 

 

Want us to walk you through it? Watch the video here!

 

 

Do You Want To Expand Your E-commerce Business?

If you want to expand your e-commerce business on different platforms, check out our other E-commerce Tutorials.

Just to let you know, we have a couple of experts who have excelled in E-commerce and are willing to share their knowledge. You can out check their blogs at https://blog.sellerschoice.digital/

If you want to hear them live, just sign up for our webinar.

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