Sales tax on shipping cost

Question

Seems EBay again is illegaly charging sales tax on shipping cost

mam98031 · Answer

@slybyesusan

Because you aren't aware of all the laws that govern sales tax across this nation. Not likely a good idea to just assume that Ebay is doing something illegal. Best to learn what you can about the subject. As @glorybells stated, some states require sales tax to be charged on an order and some do not.

Taxes - Shipping.jpg

glorybells · Answer

Since itâ€™s the individual STATES that mandate whether tax is charged on shipping, and eBay is simply following the laws put forth by those states, itâ€™s not in any way illegal. What would be illegal is for them to not follow state laws and collect the tax.

ewsupply · Answer

@slybyesusan

Fee processors do charge their fees on the Total a buyer paid. Paypal did the same when buyers payments were processed, and it wasn't as noticeable since they only did around 2.9% on the total they processed on the transaction. Back that time Ebay FVF were separate.

Now for Ebay managed payments the Fees are charged on the Actual Total the buyer paid because Ebay is the fee processor thru their agent Adyen. Fees are charged on [Item price + shipping + sales tax]. Some states do not charge sales tax on shipping.