Following the U.S Supreme Court’s decision in South Dakota v. Wayfair, the sales tax landscape continues to shift in jurisdictions across the country. A number of jurisdictions have established laws that require marketplaces like StubHub to begin collecting and remitting sales tax. As a result, StubHub will begin the process of calculating, collecting and remitting sales tax from buyers for tickets purchased for events in relevant jurisdictions beginning on October 1, 2020.
Why am I being asked to provide the original price paid per ticket in StubHub’s sell flow?
This will allow StubHub to determine the amount of tax previously paid on the ticket and help us calculate any additional tax due.
How do I know if I paid sales tax on the ticket I want to resell?
If you purchased your ticket directly from a venue or primary ticketing company to a taxable event, and you did not utilize a valid resale certificate in that purchase, then you likely paid sales tax. Your receipt or the actual tickets may or may not separately show this tax amount. In some instances, taxes are included in the ticket price or added fees.
Are there events or event types that are exempt from sales tax?
Yes. Tickets for certain events may be exempt from sales tax based on state and local tax laws. Exempt events will be treated as such when sold on StubHub.
Can I edit existing listings to include the original price paid?
Yes, sellers can and should edit listings to include the original price paid. You can do this by editing your listings directly on StubHub in your Profile, under Listings. Please note, if you are updating your listings on the StubHub app, the Original Price Paid field will be called Previous Purchase Price.
What if my listing doesn’t have the Original Price Paid field in the sell flow?
If your listing doesn’t include the Original Price Paid field in the sell flow, then StubHub is not collecting and remitting sales tax for that event.
How does this impact my personal income taxes? Other business taxes?
As with any tax matter, you should discuss this question with your tax advisor. Generally, the sales tax collected by StubHub on ticket sales should not impact your income taxes, and sales tax collected from buyers by StubHub will not be included on your IRS 1099-K Form. Any sales tax associated with sales you make outside of the StubHub platform, or in states where StubHub is not collecting tax, are your responsibility.
What happens if I misstate my original purchase price?
As a reminder, it is your responsibility under our Seller Policies to provide full and accurate information about your tickets. This includes providing accurate information regarding the previous amount that you paid for the ticket. In the case of audit, inaccurate information can shift responsibility from StubHub to the seller.
Can I correct the original price paid for a listing once I’ve submitted it?
Yes, you can correct the original price paid for an active listing as long as you do so before the listed ticket sells. You can do this by editing your listings directly on StubHub in your Profile, under Listings. Please note, if you are updating your listings on the StubHub app, the Original Price Paid field will be called Previous Purchase Price.
What is a “valid resale certificate”?
A resale certificate is generally used to purchase taxable items for resale without payment of sales tax. A seller needs to be registered with the sales tax authority in the applicable state to issue a valid resale certificate.
What if I used a resale certificate to purchase tickets I am selling on Stubhub?
If you utilized a resale certificate to purchase the tickets you are listing for sale on StubHub, then you did not pay tax on those tickets. You should leave the Original Price Paid field blank.
Can I use my resale certificate on StubHub purchases?
At this time, we are not accepting resale certificates on StubHub purchases.
What states will StubHub be collecting sales tax in?