Re: NOW a bank account a MUST?
riginally Posted by agent006140 View Post
If your state has not asked,then you are still expected to collect sales tax
That's bullsh!t.
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My state is not on the list,neither Ebay nor Etsy is collecting sales tax and remitting to my state for any of my orders shipped to my state.
But in my seller profile and listing,I ask Ebay to compute the state sales tax so the buyer would pay ME.
I will then remit to my state at the end of the year.
I am being audited by my state for sales tax,they have gone back 4 years of my sales records ,I have given them the following-
My sales ledger for 2015,16,17,18
1099K for each year from ETSY and Paypal
Annual Paypal summary showing total sales,refund,Paypal fee,chargeback.
Annual etsy summary showing sales,refund,etsy fee and returns.
I also have to show them the shipping labels for each order so the auditor can decide how many orders are sold to buyers in my state,you should be able to get them from Etsy and PAYPAL account.
I also have to give him 4 years worth of bank statements by month,so it is 48 statements per bank,and I have 4 bank accounts involved,so there are 48x4 =192 bank statements he has to go thru.
I dont know how he goes thru 192 bank statements,but what he does is single out the large amount and trace where it comes from,if it is not Paypal/etsy/amzn and not an interbank transfer,then it must be cash sale!
(aka,you sold something outside PAYPAL/EBAY/ETSY)
My advice is to find out how your state performs sales audit and be prepared.
Open a bank account just for your ecommerce business,do not use it for your personal expenses,he will be looking at deposits and want you to prove where it come from,if not salary,inheritance,insurance claims ,SS,pension,then you must have sold some thing for cash ,and it is up to you to prove it aint.
And if you cant prove it aint cash sale,then the state will assume it is cash sale and you owe them sales tax.
Happy selling !!!!!
Last edited by agent006140; 07-02-2019 at 05:33 PM.
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