WE SELLERS PAY FINAL VALUE FEE'S ON SALES TAX WHY

[Anonymous]

I have been selling on the Ebay platform for 13 years or so. With the new ebay money management system 

we were told that we will save on fees by cutting out Paypal etc. I am a small seller and I have found that I actually pay more fees in the overall total. Ebay actually charges  my account (final value fees) on top of the sales tax that they collect (I am sure all sellers pay final value fees on tax collected by Ebay).

Ebay then forwards collected taxes to the US Taxation Department, normally the taxation department pays a percentage to the collector (Ebay gets the percentage). 

And on top of that percentage,  Ebay is charging us, the sellers, final value fees on the tax collected (percentage varies depending on category and seller).

I contacted Ebay  and after speaking with people in 3 different countries that could not answer my questions, I was forwarded  to a department in  Utah  where the supervisors answer was that the  final fees are calculated on total sale.  I understand, but why charge the fees on taxes and have sellers pay it?  His response was that was the way it was calculated. I asked to speak to the next level up  was told that he was as high as I could go, that I did not understand how the fee's were calculated. I told him that I knew how CEO's and boards work.  Their job is to figure out how to make more money for investors. By charging final value fees on hundreds of thousands and more on taxes collected while also getting the percentage that the taxation department normally gives to collector.

Questions: Do you think this practice is fair or unfair for the seller to pay final value fee's  on sales tax collected by ebay? If unfair what should be done about it? 

Your comments will be greatly appreciated. 

[whatmorefabric]

I pay FVF on taxes,  shipping and sales on every site I sell on.

[jda07121 · Accepted solution]

This subject has been beaten to death by complainers who just don't get it. Sales taxes are remitted to the states, not the fed. Nothing can be done about this issue. And any seller who follows the laws will gladly let eBay do all that work for 12.55%.

[Anonymous]

Thank you, never look at the issue from this point of view , now it actually make sense

Again Thank you 

[heckofagame]

Aaaaaaaaaaaahhhhhhhhhhhhhhhhh!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[ryanrobyn]

my tax man told me that why owe have to pay fees on the sales tax we are not  allowed to claim this as a deduction expense while filing taxes. Sad

[jayjaspersgarage]

"Aaaaaaaaaaaahhhhhhhhhhhhhhhhh!!!!!!!!!!!!!!!!!!!!!!!!!!!!"      Choooooooooooooooo?

[janet9988]

You can deduct FEES as an expense...........Get a NEW tax man.

[mrdutch1001]

you can debate this until doomsday and it makes no difference...

fair/unfair..matters not...

this is eBay's site, eBay's policies...agree to them or go elsewhere

[femmefan1946]

Got our first merchant credit card account circa 1979.

Paid the card company fees on the WHOLE payment including sales taxes (provincial and later federal), shipping costs, our service fees, and purchase prices from Day One.

This is the Standard Practice of payment processors, internationally.

That's how they make their money, on fees from merchants.

Credit cards also make money on unpaid balances, so pay those off as quickly as possible and never take a cash advance, which charge buyer fees immediately.

[meldanfish]

I have the same issue. Iv'e complained to eBay as well. This is **bleep**!! I don't care what eBay does for 12.55% It is absolutely wrong to charge a fee on sales tax. That is not my money, not my profit. eBay needs to omit sales tax from the FVF. I also sell on other sites and they DO NOT take a fee on sales tax.

[meldanfish]

I totally agree. eBay should not charge a fee on sales tax. I don't care what eBay does for 12.55% they need to omit sales tax from the FVF. I sell on another site and they DO NOT charge a fee on sales tax. eBay needs to get there little IT person to fix this issue. It's wrong!!!!

[meldanfish]

I agree, eBay should NOT be charging a fee on sales tax. That is **bleep**! All they have to do is have there IT person omit sales tax from the FVF. That's not sellers profit. We should not be charged a fee on sales tax. As for mrdutch1001, I do sell on other sites and they DO NOT charge a fee on sales tax!! That is money out of our pockets.

[altaegon]

I just noticed this myself, and don't recall receiving any emails or announcements about this extra charge.

I was amazed at their greed when they started to charge fees on shipping via the wordspeak "to keep charges lower for the customer". 

I'm certainly not going to sell any more coins, etc. that I can just sell at a local store for spot and not pay any fees or taxes.  So they did themselves out of that, and lets say me selling any items for more than 10 dollars, unless the markup is exquisite, and actually, not worth the trouble in the lesser priced items (sourcing, listing, shipping" so probably stop that and just keep ebay for the odd "special occasion" 

Happy not to give them my nickels and dimes.  Ever think all their around the world operators and constant upgrading and ruining of webpages might be money laundering?

Another answer to force their grubby thieving hand is to sell everything for a penny, and add the price into the shipping.  No tax on Shipping!!  should work for a while..  Thanks for the warning on their mock customer service....been on since the beginning and its been downhill for the past 10 years or so all the time.  I wouldn't even waste my time anymore trying to communicate something to them.  If they cut me off, their loss, if they annoy me in the process...maybe their big loss if it turns into a mission.

[altaegon]

I don't think so,  as they are the intermediary any responsibility for routing taxes should be their responsibility and not an extra charge....otherwise most would opt out of having to cover 50 states...plus?  For them, let the computer automatically do it, so why charge the seller?