tax commissions?

Question

Why are we paying a commission on the total cost of our sale PLUS the sales tax? Is this even allowed? The sales tax is collected and we do not make any money on it so why do we have to pay 13% commissions on a tax?

quiltgeek · Accepted Answer

Because eBay gets a payment from the seller for doing the sales tax calulations and tracking. Also because the US Supreme Court says that online operators like eBay have to do this reportingknowing where the sales tax is going to be paid (usually the buyer's State and local tax region)calculating the payment which depends on the tax laws for the State, county, city and possibly region and the type of itemrecord what sales tax the sales generated so that amount can be reported to the IRS and the...

eburtonlab · Answer

eBay calculates the final value fee based on the total amount the buyer pays.

eBay gets to choose how fees are calculated, and individual sellers get to choose whether it makes sense to sell a particular item at a particular price on eBay.