Do You Pay Taxes on eBay Drop Shipping Profits?
I know taxes vary depending on where you live, but I have a few generic questions for US Sellers. I don't want to hire a tax consultant if I can do it myself using a tax program like HR Block, etc.. I am finding some software/web sites out there that decipher you Paypal account and break apart all your sales, return, refunds, local taxes, etc and I might start paying for one so does anyone else use any sort of software for tax purposes? Also, how do returns that show up in Jan, Feb, march effect taxes paid for the previous year? Do you get like a credit if an item was returned after you paid taxes for it the previous year. I'm dreaded it, but look at it as a good learning experience for years to come... I don't trust some tax guy who uses his own program and knows nothing about eBay, Paypal, Drop Shipping, etc...

1 Answer


Fees are being payed to ebay % of your sells, and paypal. Tax you dont pay to ebay, you pay to your country, most people only report profits and pay tax in the country after significant profits.Shopify aliexpress ebay income taxes dropshipping canada and europe

So if you sell on US ebay you don't pay tax to US? (asking just to confirm it.)
no you dont pay tax to usa. But if you would like to withdraw money to your bank account eventually you will need to report this to your country, and open buisness,it changes between countries
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