How is it legal for ebay to charge the seller a fee based on sales tax and shipping? enlighten me
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11-27-2024 06:41 AM
I'm just trying to wrap my head around the final value fee including sales tax and shipping, none of which is any income for me? I'll pay it but just need someone who can really explain it to me, in non-corporate terms.
How is it legal for ebay to charge the seller a fee based on sales tax and shipping? enlighten me
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11-27-2024 06:53 AM
On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. The decision allows states to tax remote sales. The sales tax is charged by the state the item is delivered to for all internet / remote purchases.
The market place facilitator tax law explained:
https://blog.taxjar.com/marketplace-facilitator-explained/
When this happened, ebay lowered the final value fee, and collects the sales tax from the buyer to remit to the buyer's state. Rather than having each seller keep records to track the amount of sales tax to be remitted to each buyers' state, ebay is keeping track of this and remitting to each state, and charging the FVF on the sales tax and shipping. I'd rather pay this fee than keeping records to remit to each state.
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