Final Value fee is calculated including the sales tax collected by EBay.

[neweljk]

I am selling in eBay for the past several years.  I never noticed how the eBay was calculating the final value fee. Recently when I checked I found that they are including the sales tax also in the calculation of the final value fee. If I sell some thing for $100 and sales tax is 7% the total sales amount is $107 and final value fee is calculated for the $107. I think this is not right. The tax eBay collected never passed to me nor it is set in my listing. This tax money directly goes to Government, so why I have to pay a fee for this money?

[glorybells]

eBay collects their fee on the total collected from the buyer.  For them to have to break it down and figure out which parts of that total went for item price, shipping, and taxes would require a monumental accounting effort, and would probably result in us having higher fees.

As a side note, when PayPal was processing our payments, they figured their fee the exact same way.

[quiltgeek]

You pay for the processing fee for ALL the money transferred from the buyer.  All sellers, both local and online have to pay for that processing.

You get the item price and the shipping payment, eBay collects the sales tax and turns it over to the destination the buyer gave you.

[neweljk]

I do not think your response is the right answer. Whole eBay business is run by computer codes, and changing their policy if they result in lowering their money they will not do it, but if they get more they will definitely will do it whatever is the monumental effort is that.  PayPal may be was doing the same, but when thinking of collecting fee on tax it do not seems to be correct.

[quiltgeek]

As the seller, you pay the processing fee on ALL the money that the buyer pays, price, shipping charge and sales tax.

You get the price and shipping.  You pay the carrier for shipping the item with the shipping  charge you got from the buyer. You pay the Final Value Fee and any options you added to the listing to eBay.

eBay, who added the sales tax for the location the item is being shipped to, collects that sales tax from the processing by Adyen and remits it to the State where the item is being delivered.

[wooden_flower]

eBay wants to charge one simple rate on the total from the buyer, just like they did before managed payments, and like paypal did. You paid a fee on the sales tax to paypal.

The total rate is a bit lower than the old eBay + paypal rates, to allow for the higher  fee on the tax.  It comes out about the same as before - sometimes a little more, sometimes a little less.

So with the one lower rate, we complain about the fee on the tax.  If they had created a single higher rate and applied it to only the item and shipping, we would complain about the rate going up. 

I care more about the total fees not going up than I care about how they get there.  I am always in favor of the most simple calculation. 😁

[inceptions]

I do not think your response is the right answer.

I get that you don't like the answers, but the responses you have received ARE all correct. The answers tell you exactly what eBay tells you in the help topic on fees, the fees are what you agree to each time you list an item, and it's the way all payment processors work. eBay is not unique.