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Charging Transaction fees on SALES TAX COLLECTED FROM Customers!!!
Hi,
I am an Accountant and sometimes I post items in Ebay for items I don't need. I sold Brand New Marc Jacobs bags, and diamond earrings that I never used- but I saw that EBAY charged me 15% transaction fees on Sales Tax.
In the first place - SALES TAX ARE money they collected from buyers to be remitted to a corresponding State! We, as seller - never received the money, - SO WHY DO WE HAVE TO PAY transaction fees on Sales Tax Collected on behalf of the State.
For the meantime- Ebay needs to remit the full amount of sales tax.
For example - a Sales tax for the earrings I sold at $480 - at 8.875% = $42.60 (NYS and NYC)
Ebay took 15% $6.39 from me, and at the same time - full amount of $42.60 they need to remit to NYS and NYC. So, as a seller - I am out of $6.39. Just imagine those big time Ebay sellers that sells tons of items every month. I only sell once in a while.
I believe this is NOT how it is supposed to be. Sellers SHOULD NOT BE CHARGED TRANSACTION FEES for sales tax collected on behalf of the State/City.
Who we should addressed this to?
kh-cathy
·2 years agoHi everyone,
This thread has been closed at the request of the OP.
Thank you for understanding.
tobaccocardyahoo
·2 years agoIt is not Sales Tax. It is Marketplace Facilitator Tax.
Ebay has decided not to be an unpaid tax collector for any state. It is levying a fee on the tax and since what the buyer pays is defined by the state, it is levying that fee on the seller. The seller is contractually bound to pay whatever Ebay charges if they use the site.
No legal issues arise because this is straight contract law.
Many of us object to being an unpaid tax collector. Some of us relocated to states which have no sales tax. If I could move this merchandise locally for what I net when I sell on Ebay, I would. I am offended by paying a fee on tax levies but paying that is more to my benefit than only selling locally.
You should know how to do a cost-benefit analysis, and conclude for yourself what is your best course of action. Fairness has nothing to do with this situation.
monroe67
·2 years ago"Hi,
I am an Accountant and sometimes I post items in Ebay for items I don't need. I sold Brand New Marc Jacobs bags, and diamond earrings that I never used- but I saw that EBAY charged me 15% transaction fees on Sales Tax." Rest of screed omitted.
Excuse me while I compose myself after ROFLOL
If you truly are an accountant, a CPA, licensed in your state OR even if you "just" have a certification through H&R Block to prepare tax returns in their offices for their clients . . . . . .
You really ought to know better than to think that some of the things you say in your post are "true."
I think you might not be telling the truth, the whole truth, and nothing but the truth.
FIRST and foremost, YOU, as a CPA really ought to know that eBay is a Marketplace Facilitator.
Supreme Court case. State Laws.
And that eBay, as a Marketplace Facilitator, has the responsibility of calculating sales taxes, accepting and collecting sales taxes paid by buyers, and ultimately paying those sales taxes to the appropriate states. All that work is NOT the job of any eBay seller, at least not one who plays by eBay's rules and processes their transactions completely on eBay.
Even in the luxury categories like you mentioned, which do carry at 15% Final Value Fee, let's say the sales tax on some particular transaction comes to $50.00, which it would be for the sale of a $500.00 Thing to a buyer in the Los Angeles area who is used to paying 10% sales tax.
eBay's FVF is charged on the total amount paid by the buyer. Let's focus on just that $50.00 of sales tax. Fifteen percent (15%) of $50.00 is $7.50. I think that's a good value for all the work involved. I wouldn't want to do it.
Here another thing any CPA or accountant would know, if they truly are a CPA or accountant:
eBay's fees are tax deductible by the seller. So in the example above, for me, hey, I get to deduct $7.50 because I paid eBay for handling everything involved with sales tax. Because eBay is required by law to handle everything involved with sales tax.
As Dr. House used to say, "You're a m*******."
kenneth686321
·2 years agoIf FVF were 15% on the item price + shipping ONLY would that make you happy? Probably not.
BTW 13.25% Fee on item price + shipping + 12% Sales Tax is roughly the same as 15% fee on item price + shipping.
Which would you rather pay? Ebay gets the same price fee out of your transaction regardless.
Do I wish fees were lower? ABSOLUTELY. I also wish the cost of gas, groceries, rent, insurance were lower. Ah well.
You need to pay a fee to sell on Ebay. How Ebay calculate the fee is up to Ebay. Fees are clearly spelled out before you list. It is YOUR RESPONSIBILITY to understand the fees and decide if its worth it selling on Ebay. But the time to decide is BEFORE you list your item NOT after.
az93
·2 years agoDon't waste your time. This is how it works. Ebay does not work for free. They collect and distribute sales tax for both buyers and sellers. I am thankful for the service, personally.
stainlessenginecovers
·2 years agoAn accountant??
Fees have been charged on the TOTAL at the Register (which includes Sales Tax) since the advent of the Credit Card in the 1940s...
klhmdg
·2 years agoYou can address this to anyone you want to BUT it is spelled out in the Understanding Seller Fees ...
Fees are paid on the total sale price the buyer pays.
Since eBay collects the taxes for the sellers and remits it to the appropriate state/city, Im good with not having to do it myself every quarter to every state/city in the US and to know their tax laws.
chapeau-noir
·2 years agoA brief search on this forum will bring up hundreds of threads and posts on this subject. Lots of chat and information here.
brightlightbookseller
·2 years agoPlease read the thousands of other threads on this before starting your own. No one necessarily likes it, but it's the way it is, it's legal, and it's totally normal.
You should be addressing yourself. If you're an accountant, this should be abundantly clear to you and you should have already known this prior to selling a single item.