Ebay Changes Way it Taxes Sales, Affecting Most Buyers and Sellers (List of States Requiring Internet Sales Tax Included)

eBay has announced that beginning in November there will be changes in how Ebay collects taxes on sales, as a majority of states now require Internet sales tax to be charged on online purchases. (See below for list of states requiring Internet sales tax.) In a letter to eBay sellers, eBay claims that they and sister company PayPal are “making changes that will make Internet Sales Tax collection less complex for buyers and for you.”

Explained: Supreme Court Hands Down Internet Sales Tax Law of the Land in South Dakota v. Wayfair (includes link to full text of SC opinion)

With today’s Supreme Court decision in the Wayfair v. South Dakota case, the Supremes have cleared the way for states to collect sales tax from Internet-based merchants who do not have a physical presence within the state; however the ruling is quite narrow in its scope and so does not open the floodgates for states to tax anybody and everybody who arguably does business online within a given state. Read on for a plain English explanation of this Internet sales tax decision, as well as a link to the full South Dakota v. Wayfair decision and the dissenting opinions.