Do I Need a Tax ID Number to Sell on eBay?
No, a tax ID number is not needed to sell on eBay. Your social security number is an acceptable tax ID number, but you may need to obtain a tax ID if you are turning your eBay shop into a business.
Tax Obligations and Sales Tax
- When you sell on eBay, you’re responsible for following tax regulations and may have sales tax issues.
- eBay collects and remits sales tax in some states, while sellers are responsible for collecting in others.
- Setting up tax tables on eBay makes sales tax collection easy, with the platform calculating and collecting taxes at checkout.
Business Licensing and Permits for eBay Sellers
Many eBay sellers wonder if they need a business license. While eBay does not require it, some states or cities might. Large businesses typically require licensing, while smaller operations may not. Educate yourself on the licensing laws where you live to avoid fines or closure.