Question about Tax Promotional Fee

Question

I understand why I am paying the FVF on the Item & the Tax on the Item, but Why am I paying a Promotional Fee on the TAX of the Item when we use the 'Promote Item' choice?

Meaning if I sell something for $1000 & Tax is 7% = $1070 ... then say I have a 5% Promo fee ..my Promo Fee total is then $53.50 & not $50.00 (50 being the promo fee on the item itself) ... Is this the way it is suppose to be????

powell-collectibles · Accepted Answer

@mr.jcmint wrote:I understand why I am paying the FVF on the Item & the Tax on the Item, but Why am I paying a Promotional Fee on the TAX of the Item when we use the 'Promote Item' choice?Meaning if I sell something for $1000 & Tax is 7% = $1070 ... then say I have a 5% Promo fee ..my Promo Fee total is then $53.50 & not $50.00 (50 being the promo fee on the item itself) ... Is this the way it is suppose to be????Well, eBay used to do it the way you think it should be. T'was a day when the promo...

kalyoth · Answer

Some states consider Promoting "advertising" as a taxable service all it's own as it's a manufactured product marketed to the public. Similar to a cooked meal sold to the public applicable to a meals tax. Beware as they grow more desperate for money and taxes expand.

soh.maryl · Answer

So you're apparently referring to the final value fee?

ryry-jj · Answer

That was because back in the day we didn't have sales tax...and sellers would list items for a $1 and charge $100 for shipping to then only pay FVF on $1. Processing money is not free & it doesn't matter if sellers are profiting off that processing or not, its a cost of doing business

jonathanbrightlight · Answer

Because the fee is charged on the total paid by the buyer. That's the way it is supposed to be because that's the way eBay states they will charge it.