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Ebay taxing sales tax seems very illegal?
Ebay taxing sales tax seems very illegal? I mean if it was not, then why is not every business taxing and or charging a fee which is taxing, to any government tax.
I studied commercial law and this screams at me that its illegal for ebay to charge us tax for profit from sales tax.???
8 comments
kh-vince
·2 years agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.
Thank you for understanding.
soh.maryl
·2 years agoSeems like anyone who has studied any kind of law would realize that eBay has a few (hundred?) attorneys on the payroll and that they have, in fact, assured eBay that this is indeed legal.
femmefan1946
·2 years agoI studied commercial law and this screams at me that its illegal for ebay to charge us tax for profit from sales tax.
Studied or passed the course?
This has been industry standard since the 1940s and the earliest Diners Club cards.
The fees are not on the tax but on the payment.
The payment includes selling price, shipping, and applicable taxes.
Taxation can only apply to goods and services.
Collecting and remitting taxes for the vendor is a service and fees (not taxes) can be applied to services.
juleyhull
·2 years agoI wholeheartedly agree with you and I also feel that charging FVF on Shipping is not okay either, assuming the shipping amount charged is what ends up being paid (in which case ebay could charge FVF on the difference.)
I am a small seller who makes a pittance from sales, when I’m lucky enough to sell anything at all these days on eBay. My prices are very reasonable but people want things for free or expect us to pay for the shipping out of our own pockets.
Nearly everything I sell is pre-owned, so there shoukdn’t be sales tax at all. The State received the Sales Tax the first time the item was ever sold. I am not Goodwill, for (bleep)’s sake!
What this move tells me is that it’s time for me to move on to another Marletplace, where I can charge less because I don’t have to pay such enormous FVF!
I sell the items for less than they would cost at CA retail (?) like Goodwill or Salvation Army. The prices at those places are outrageous in SF Bay Area, and I’ve seen items priced higher than what they cost new from Target or Walmart (I know their Brand Names.)
The government continues to squeeze the little people in favor of the 1% and large corporations who don’t even pay their fair share, or anything at all!
I have no words to those who defend eBay, you must be making a nice living. Those of us in the trenches are struggling for every dollar these days!
dwise3671
·2 years agoThe fees eBay is charging are fair and legit. They are doing the sales tax portion for you. As someone that used to own a physical store, I can tell you that eBay is providing a huge service, and their overall fees are low, when compared to other parts of the retail market. Just try to get a product on a retail store shelf, then come back and tell us how unfair eBay is.
monroe67
·2 years agoThis subject keeps getting complaints and rants. Today's post is on a thread that was started roughly 11 months ago.
"I wholeheartedly agree with you and I also feel that charging FVF on Shipping is not okay either, assuming the shipping amount charged is what ends up being paid (in which case ebay could charge FVF on the difference.)"
This suggestion has been made before, with an "argument" that eBay will know how much postage the seller actually pays when that seller buys postage through eBay. One difficulty with that theory is that not every seller purchases postage through eBay. I'm not a programming person, but I imagine it would be kind of complicated if eBay tried that. There would very likely be glitches at the beginning. AND there would certainly be a criminal element Out There in the World that would try to get around it.
"I am a small seller who makes a pittance from sales, when I’m lucky enough to sell anything at all these days on eBay. My prices are very reasonable but people want things for free or expect us to pay for the shipping out of our own pockets."
My selling ID is also an extremely small seller. No sales so far this month, although two auctions are ending within the hour, and only one sale last month. And my buyers never expect me to pay for shipping out of my pocket because I always add Calculated Shipping to my listings.
"Nearly everything I sell is pre-owned, so there shoukdn’t be sales tax at all. The State received the Sales Tax the first time the item was ever sold. I am not Goodwill, for (bleep)’s sake!"
This is a common misconception, exacerbated by the use of the term "sales tax." Taxes on sales transactions that take place on the internet -- like on eBay, Etsy, Poshmark, Reverb, etc., etc. -- are taxes on the transaction itself, i.e., the exchange of money for goods/products. BTW, if you ever purchase anything in a Goodwill or Salvation Army or local charity shop, which is by definition "used", you will probably pay "sales tax."
"What this move tells me is that it’s time for me to move on to another Marletplace, where I can charge less because I don’t have to pay such enormous FVF!"
Be sure to study the fee structures on any other selling platform before you jump. The grass may not always be greener. Make sure you will never pay any enormous selling fees.
"The government continues to squeeze the little people in favor of the 1% and large corporations who don’t even pay their fair share, or anything at all!"
Assuming you are a U.S. citizen, I hope you study the candidates' positions on taxes, so you can cast your vote appropriately.
"I have no words to those who defend eBay, you must be making a nice living. Those of us in the trenches are struggling for every dollar these days!"
Regular readers of this community forum see this kind of comment often. What those posters see as "defend[ing] eBay" is more an acceptance of eBay's policies/procedures, and an attempt at trying to explain those policies/procedures. Today's post, like so many others in the past, subtly suggests that eBay pays people to post "defenses", which is simply not true. And, again, my selling ID, in the trenches, is a very low-volume small-time seller who also struggles for every dollar.
My last comment: All eBay fees are generally deductible on your federal and California state tax returns.
itsjustasprain
·2 years agoI know but the bottom line is that Ebay takes a straight percentage of the buyers payment to you. That is how it works.
It is a Sales tax - not a New Stuff tax. The state (most of them anyway) collects a percentage of the sale. It does not matter whether the item is new or used. If you think that a sales tax on used items is unfair then you need to take that up with the state you reside in. Ebay is not a party to that although they do collect the sales tax for you. On-line sales are taxed according to the buyers location so you really dont want to have to track all that yourself.
Let us know when you find one that has the expanse and public awareness of this one. But seriously - if you find more success elsewhere then fine - that will work for you.
Now please dont go all silly on us just because not everyone agrees with you. You sell what works - where it works. That would be either here or elsewhere and you are free to decide what works for you. Good luck.
theteamsetguy
·2 years ago@juleyhull ,
While I agree with you that the 1% could probably contribute more but what do you think happens when we tax the business (corporations) more? They will raise prices to make up for the additional taxes. You and I end up paying the higher taxes thru higher prices.