What is this new tax included in seller fees?
I sold clothing items on Oct 1st and 2nd that each had a 4 cent tax in addition to the final value fee.
I've never seen this before and it wasn't on the items I sold in the previous days, Sep 29 and 30.
I haven't seen anything a new tax on the seller news or this board. Does anyone know what this new tax is for? If it helps, the buyers each paid less than $10 each including selling price, shipping cost and sales tax. Buyers were in Pennsylvania and Arizona and I am in Texas if that makes a difference.
I calculate the final value fee as the price the buyer paid * 13.6% ebay selling fee + 30 cents (or 40 cents for items > $10). But now ebay added another 4 cent tax below the final value fee calculation. screenshot example:
 
Any ideas what this could be???
r_lresale
·11 months agoI heard about here on the boards but never got any communication from Ebay about it at all.
fm2000
·11 months agoIt is the new Texas sales tax that is charged on the eBay seller fees the seller pays. Yes, now they tax what eBay charges you like they tax other "services" you pay for, like auto repair, house repair, dry cleaning and such.
Be sure and write your elected officials in Austin and let them know how happy you are about it.
spacecoastparts
·11 months agoThis is basically eBay being the "seller" and the eBay seller being the "buyer" as far as Internet sales tax goes.
As I understand it, state taxing for online services is supposed to be implemented in more states than just TX. Seems like TX pursued the big ticket revenue by classifying online marketplaces as a "data processing service" that they specifically subject a tax to. Anyone care to clarify further?
https://worldpopulationreview.com/state-rankings/internet-sales-tax-by-state
This has got to be a windfall for TX.
chappello1
·10 months agoI just finished an hour phone call with Ebay about this very thing. According to them the only other states to implement such tax are Washington, South Dakota, and Hawaii. I am just wondering, because I have a store, don't they already tax the yearly fee for that? (maybe I shouldn't mention it!)
chappello1
·10 months agoI forgot to say that your answer is perfectly correct - "data processing tax". What a bunch of **bleep**!
valueaddedresource
·10 months agoHere's the current list of states which may tax selling fees and which fees it applies to:
https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121
monroe67
·11 months ago"Any ideas what this could be???"
A quick glance at your eBay ID -- "ellemaytx" -- told me the answer to your problem/question:
You're in Texas.
Your state legislators decided to impose this "new tax" on you, as an eBay seller in the state of Texas.
The locations of your buyers will probably have a very minimal -- possibly negligible -- effect on this amount that, essentially, you owe to Texas. The Final Value Fee (FVF) is a percentage of the total paid by the buyer, including sales taxes, which vary widely and wildly among the (ooops) 45 states with sales taxes.
This new Texas tax, as I understand it, is Your Texas Sales Tax Percentage times 80% of your eBay FVF
(including those 30 cents or 40 cents per-order fees).
(It's 80% because your state legislature decided not to tax the first 20% of your eBay FVFs.)
ellemaytx
OP11 months agoThanks to you and all the others who told me about the new Texas sales tax on FVFs. I was obviously out of the loop here, and appreciate all the good info including how to calculate my new TX tax.
jonathanbrightlight
·11 months agoI think most people aren’t aware of it or are just becoming aware. Not being in Texas myself, I only knew because that other thread had just been posted a few days ago.
chappello1
·10 months agoWell I have read all of the comments I think, and I still don't know how to calculate the new tax. Can you help me? Thanks
wastingtime101
·11 months agoHi @ellemaytx . Sellers in TX are subject to tax on marketplace services starting Oct 1st. It's been in the news for about a year, but finalized maybe a month or so ago.
Read more here:
https://community.ebay.com/t5/Selling/Sellers-in-Texas-sales-tax-on-marketplace-services-seller-fees/m-p/35242559#M2606076
Can you check your eBay Messages and see if you received any communication from eBay about this?
le-5262
·11 months agoI saw something about a new reseller tax that I believe goes into effect in TX only?
jonathanbrightlight
·11 months agoThat sounds like the likely reason since @ellemaytx is indeed in Texas. Here’s the discussion:
https://community.ebay.com/t5/Selling/A-new-sales-tax-just-for-resellers/m-p/35286610#M2617430
bonjourami
·11 months agosoh.maryl
·10 months agoSeveral states, I forget which ones except Texas, have decided to impose this tax on their sales.