Internet Sales Tax

At a Glance

eBay opposes any attempt to impose Internet sales tax collection burdens on small Internet-enabled businesses that struggle enough as it is to compete with big box retailers. Sales tax legislation needs to be fair to businesses of all sizes.

  • Internet sales tax legislation could force small businesses to collect and remit sales taxes in up to 9,600 jurisdictions nationwide.
  • It’s fundamentally unfair to treat a small online business the same as a mega-billion dollar retailer with teams of tax attorneys and accountants.
  • True state sales tax simplification or an increase to small business exemptions are two options that policymakers should consider.

Issue in Detail

Remote sales tax. Nexus tax. Distant sales tax. Streamlined Sales Tax Project. Internet sales tax. Online sales tax. No matter what you call it, eBay opposes any attempt to impose Internet sales tax collection burdens on small Internet-enabled businesses. As small businesses all across the nation struggle to compete with big box retailers, this is not the time to require small Internet-enabled businesses to take on the additional burdens of collecting and remitting sales taxes in up to 9,600 jurisdictions nationwide.

Internet Sales Tax: A Historical Timeline

Over the years, eBay has witnessed firsthand the opportunities that have been created for small businesses that use the Internet to reach new customers. The Internet is an essential tool for businesses of all sizes - especially small businesses - to reach new markets and new consumers. However, treating a small online business the same as a mega-billion dollar retailer will not foster small business growth and development. Policymakers need to promote policies that keep the Internet marketplace open to ALL business, both big and small.

Small Business Owners Discuss Internet Sales Tax

eBay believes that a workable solution must provide true fairness for Internet-enabled businesses. True state sales tax simplification or an increase to legislatively proposed small business exemptions are two options that policymakers should consider.

Read our complete policy briefing: Protect Small Businesses: Include a Robust Small Business Exemption in Any Internet Sales Tax Proposal