Ebay showing larger "sold" amounts than actual.

[gm-addict]

IE: Item sells for 20$ shipping is 22.50$ Ebay shows me that I have total sold of 43.70$.  Upon contacting them I was told that this is incorrect and it was a "technical issue".  Yet as I continue to sell this "technical issue" has not been resolved.   Not sure if this is a problem that only I am experiencing or if others are also.  Not sure if I am being charged fee's based on this higher amount or not, if I end up having taxable income from sales on ebay will it be for the amount "they" say I sold or the actual amount the item sold for..  Just putting the word out as it still has not been corrected and again not sure if its a "me" problem or... 

[nobody*s_perfect]

The final value fee is a percentage of the buyer's total payment including not only the item price but also shipping and sales tax (if any).  Your final report for taxes (including your 1099-K if you pass the thresholds) will also include the item price and the shipping that the buyer paid (but not the sales tax).  

Whatever you actually paid to the Post Office for shipping is a deductible expense when you file your taxes. Often, the amount that the buyer pays to the seller is not exactly the same as what the seller pays for postage, so those have to be handled separately.

[wastingtime101]

You may find these pages helpful:

Selling Fees:

https://www.ebay.com/help/selling/fees-credits-invoices/frais-pour-les-vendeurs-particuliers?id=4822

1099-K:

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

[redlinear]

Should be more than that (sales tax).
$42.50 plus tax would be more than $43.70 I would think

[mtgraves7984]

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@redlinear wrote:

Should be more than that (sales tax).
$42.50 plus tax would be more than $43.70 I would think

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@redlinear 

I thought the same. Could it be going to one of those states who charges tax on the item, but not s&h? 🤔

[redlinear]

@mtgraves7984 
  I might be wrong, he says eBay showing that he "sold" that much.  I thought sales tax showed up there, but I don't remember and I'm too lazy to go dig around my own reports to see for sure.

[gm-addict]

If they are showing my total amount "sold" with tax included then I am then paying fee's on that tax and I will also be paying tax on that tax as well if that is the case?   Total Sales = "this amount"  I did not receive the tax thus I should not be paying fee's based on it, nor should it be included in how much I have sold.  I did not receive it thus it should not be part of the equation.  I was told by an Ebay rep that this was incorrect and it would be corrected, yet they have failed so far to make the correction. 

[kensgiftshop]

Yes, if the buyer pays sales tax, you pay a fee on it also.

[redlinear]

I don't think it's right that eBay charges their fee on the sales tax. 
But, they do

[nobody*s_perfect]

The sales tax paid by the buyer is included in the final value fee calculation. But it won't be included on your 1099-K if you get one.

[fern*wood]

It would benefit the eBay phone reps to read this thread, or at least read the actual eBay links, so they wouldn’t have to “report” so many glitches.

[caldreamer]

EBAY fees are charged on total amount (purchase price + shipping + sales tax) plus 30 cent handling charge.   

EBAY reports your "gross income" of $43.70 (purchase price + shipping income) as taxable income.    When you file Federal income tax as a "business" you can deduct expenses (EBAY fees, shipping expense (cost to print labels), cost of goods, mileage, returned merchandise, packing materials, office supplies).   You pay Federal income tax on "net amount" (after all deductions taken).

[dbfolks166mt]

I don't think it's right that eBay charges their fee on the sales tax. 
But, they do

     My standard canned response with regards to the FVF's on sales tax. 

     I have always considered the eBay FVF's on sales tax to be the best accounting bargain around. If you sell a $100 item to a buyer in a state with 8% sales tax the FVF on the $8.00 in sales tax amounts to 13.25% * $8.00 or $1.08 if you are promoting at 2% that adds another $.16 so the total FVF on the sales tax is $1.24. 

     For that $1.24 eBay keeps track of the 10,000 various state, county, city, parish, municipality..... sales tax rates, and laws, and applies and collects the proper sales tax from the buyer. The sales tax percentage may also vary depending on the type of items you are selling since some states, counties, cities…. Tax different items differently. Food and clothing for example. EBay then remits those collected funds to the 45 states with sales tax laws on whatever periodic basis is required. There is NO WAY I want to take on that burden as a seller for $1.24 +/- out of a $100 sale. "

[annadryl]

I totally agree. I'll happily pay a tiny fee to let them handle the tax paper trails. It's only a very small percentage of a percentage. I can add 1 or 2% to my prices to cover it, then the buyer pays for it.

[gm-addict]

Heh, I get it.. I am just a little guy trying to get parts out to people that maybe in need.. Not making money on this.  Its funny although to see people "happy" to pay the fee on the tax as it saves you the time?  They are collecting the tax BY LAW, that means they have to as a business.  My RL store front has no choice but to collect sales tax for purchases again by law.. Unless someone is tax ex because they run a business again by law I must collect the tax and I must pay it.  I wish I could charge all my customers fee's on the legal obligation I have of doing business, one of those obligations is to collect the tax.   Just shows ya how far gone ebay is.. Thanks for all your input.. sounds like better to just toss this stuff in the garbage and save myself the time of packaging and shipping as in my case there is no real profit to be made.. more to get vintage parts in the hands of those restoring cars so they can be used..