Do you have questions regarding 1099 regulations or entering tax information? Feel free to ask in this thread. If your question is account-specific, send a private message to TeamStubHub with the email address and phone number on file.
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Overview of 2023 1099-K Regulations
Beginning January 1, 2023, the IRS has updated its 1099-K regulations to require all businesses that process payments to file a 1099-K for all sellers with more than $600 in gross sales in a calendar year.
In order to generate a complete Form 1099-K as required by state and federal tax laws, we’ll need your Taxpayer Identification Number (TIN). Your TIN is typically either your Social Security Number (SSN) or Employer Identification Number (EIN) for businesses.
We encourage sellers to prepare for these regulatory changes by inputting your TIN as soon as possible into your StubHub Account. To enter your TIN:
- Login to your StubHub Account at stubhub.com
- Visit the Settings page under your Profile. Go to 'Profile,' then Settings.
- At the bottom of the page, enter your information under Taxpayer Identification Number (TIN) Info
- If you are not subject to these requirements because you are not located in the U.S., set your address as ‘International’ under Taxpayer Identification Number (TIN) Info and additional instructions will be provided at a later time.
Sellers who reach the $600 threshold and do not have TIN information on file will receive an email alerting them to update their information. Payment will be withheld from sellers until TIN information is provided.
If you meet these reporting requirements, we’ll generate a 1099-K and send it to you via U.S. Mail at the beginning of each year. The same information will be sent to the IRS and state tax agencies where applicable.
How we calculate gross sales
We sum your ticket sales for the year based on the date you were paid, not the sale date. To see your StubHub sales history, log into your account and click 'My tickets' then Payments. Then click 'Export Payment Info' to download your sales and payment history to Excel.
Your gross payments are the total StubHub sales for the year before deducting any seller fees (not including buyer fees or delivery charges).
For example, if you made $5,000 USD in ticket sales and were charged 10% ($500 USD) in sell fees, StubHub will report $4,500 USD in gross payments. When calculating gross payments, we don't factor the purchase price of the tickets you sold or the following adjustments:
- Credits
- Discounts
- Fees
- Refunds
- Cancelled events
- Substitutions
Ask your tax advisor about amounts you may need to report on your tax return. It is your responsibility to report amounts and deduct any fees or charges to sell your tickets.
Sales tax FAQs
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.
Why am I being asked to provide the Purchase Price 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 Purchase Price Per Ticket. You can do this by editing your listings directly on StubHub in your Profile, under Listings.
What if my listing doesn’t have the Purchase Price Per Ticket field in the sell flow?
If your listing doesn’t include the Purchase Price Per Ticket 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 Purchase Price Per Ticket?
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 Purchase Price Per Ticket for a listing once I’ve submitted it?
Yes, you can correct the Purchase Price Per Ticket for an active listing as long as you do so before the listing sells. You can do this by editing your listings directly on StubHub in your Profile, under Listings.
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. Leave the Purchase Price Per Ticket 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?
We will automatically calculate sales tax for events in jurisdictions where StubHub is collecting and remitting.
