How come Ebay seller fee's include fee on sales tax.

[mtgraves7984]

To defray your accounting costs and headaches.

[toysaver]

Because eBay is a for profit business.

[kensgiftshop]

Because Ebay says so.

[fab_finds4u]

Payment processors charge a fee on the total because they have to disburse the money they collect to the right pockets, and that includes sales tax money.

[rfmtm]

Yes, ebay is essentially charging a FVF on sales tax. While charging a payment processing fee is common, this higher commission for collecting the tax is an ebay original. Currently some taxing authorities are looking into this questionable practice, especially when venues like ebay already get to keep a tax processing fee from marketplace states. Something you might want to bring to the attention of your state's tax department for their comment.

[friskya]

---

@kensgiftshop wrote:

Because Ebay says so.

---

DING! DING! DING! DING!

And we have a winner, folks!

[maxine*j]

---

@rfmtm wrote:

Yes, ebay is essentially charging a FVF on sales tax. While charging a payment processing fee is common, this higher commission for collecting the tax is an ebay original. Currently some taxing authorities are looking into this questionable practice, especially when venues like ebay already get to keep a tax processing fee from marketplace states. Something you might want to bring to the attention of your state's tax department for their comment.

---

@rfmtm 

That's more than interesting.  Which taxing authorities are doing this?  What is their reason for doing so, since this is standard practice in payment processing?   What is the desired outcome, on their part?  I'm fascinated, so please share your source(s) for this.  Thanks.

=

[frugality_inc]

Because eBay likes to continue raising fees through other ways without directly raising the FVF. 

[mtgraves7984]

---

@maxine*j wrote:

---

@rfmtm wrote:

Yes, ebay is essentially charging a FVF on sales tax. While charging a payment processing fee is common, this higher commission for collecting the tax is an ebay original. Currently some taxing authorities are looking into this questionable practice, especially when venues like ebay already get to keep a tax processing fee from marketplace states. Something you might want to bring to the attention of your state's tax department for their comment.

---

@rfmtm 

That's more than interesting.  Which taxing authorities are doing this?  What is their reason for doing so, since this is standard practice in payment processing?   What is the desired outcome, on their part?  I'm fascinated, so please share your source(s) for this.  Thanks.

=

---

@rfmtm 

And, no... I have no desire (nor need) to bring to the attention of my state's tax department for their comment.

But I'm interested in your thoughts, as @maxine*j is... please expand.

[releasethekraken_1]

---

@kensgiftshop wrote:

Because Ebay says so.

---

There was a guy on the old forums (his ID was “old” something-or-other)  who would always give that answer when people kept questioning policies. Always made me laugh. He was quite a curmudgeon.

[singular-source]

When I found out about this I was definitely angry...eBay fees are the highest they have ever been.  They charge fees on everything that is collected.

[singular-source]

I stopped selling on Amazon because of the fees and return rates, plus there stringent verification.   eBay fees are just under Amazon's rates.  Very close now.

[chapeau-noir]

Amazon has a lot more than just FVFs - I swear, they must charge fees on the air one breathes.  And then, you have to work for Bozo's world (even though he's not CEO anymore now that's he's a Space Cowboy).

[rfmtm]

@mtgraves7984 

@maxine*j 

Yes it is common payment processor practice to collect a reasonable "payment processing" fee on the Sales Tax amount, which in most cases is around 3%.  What is not common is to also collect a commission, an extra 7%-9% in eBay's case, on top of that.

Some on these boards seem concerned that this is not fair, especially since the states already pays the venue an extra fee for the service.   And I have to agree, as in the end all costs eventually filter down to everyone paying more.

Most states I doubt are even aware of this ebay practice, but some like my state of Florida are getting complaints and looking into it.  Don't remember the couple of other states mentioned in the news, but if complaints come in, others states probably will look into it as well. 

For me as a seller, it's nice to have ebay take care of the tax, and worth a fee to do it.  As a buyer, not happy paying anything extra.