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Do ebay sellers pay government taxes?

Discussion in 'Ebay' started by Bavaria, Apr 2, 2016.

  1. Bavaria

    Bavaria Newbie

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    Do ebay sellers pay government taxes?

    If yes, roughly how much?
     
  2. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    They should. PayPal is obligated to report the sellers to the IRS, if they make more than x amount in a fiscal year and/or the amount of their total PayPal transactions goes above the limit. Dunno the exact the numbers, Google it.

    It's the case not just in the States, but in UK too and maybe a couple other tier 1 countries.
     
  3. Bavaria

    Bavaria Newbie

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    Thank you for your prompt answer!
     
  4. toml3030

    toml3030 Elite Member

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    depends on where you do business you have to collect sales tax and income tax on profits. If you report as a sole prop or personal business on your taxes your income tax could be up to 49.6% and if your report as a corporation your taxes can be up to 35% of profits.