Any lawyers can answer this question?

[cameratraderjude]

Hi,

I recently sold a item of substantial value and I don't remember eBay being able to take a Fee from the sale that includes the TAX in the total payment from the buyer?

I have never heard of such a thing.

How many different ways is eBay over charging?

Shipping fees for returns and now fees that in TAX and if the item is from an international buyer they throw that in too. The additional value adds up to 55.65 of which they took 13.25% equals 7.37. Then the international fee is is an addition 1.65 % of the total equals 14.04. 

Keeping in mind the seller has ZERO idea that the buyer is international but eBay gets more money if it is!

[kensgiftshop]

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@monica-sells wrote:

"...I have discussed with my accountant and that's illegal. I will pursue else where and get an answer from the IRS. Thanks..."

This is why I love this board.....comic relief without a cover charge...

while you are at it, ask why every single credit card charge made in the whole wide world that includes sales tax as a line item charges the merchant for processing the whole sale?

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They also charge the buyer, so they get a double fee on the sales tax.

[cameratraderjude]

It takes a class action lawsuit to change anything eBay does. Google Ebay Lawsuits and they usually loose.

From a lawyer "It should be a deceptive trade practice - but unless states or the Fed pass a law prohibiting it, you agree to the terms using eBay as a seller."

It's only legal because they put in the agreement and we idiots sign the agreements. 

I have cancelled any other items I had fro sale but I do realize it was my responsibility now.

I'll leave all the fees to be paid by the sellers and I am now only a buyer on eBay.

I'm certainly one of the idiots but not anymore.

[bonjourami]

"I'm certainly one of the idiots but not anymore."

Good to know.

[monroe67]

"I'll leave all the fees to be paid by the sellers and I am now only a buyer on eBay."

I will not be paying any fees to eBay based on any purchase you might (try to) make from my selling ID.  

[soh.maryl]

It's always baffling to me when anyone at all comes here and states that they do not believe eBay's fee schedule, where the FVF is charged on the item cost, the shipping fee and the state sales tax is legal.

Would you not imagine that eBay has in its employ a few (hundred) attorneys who've determined that this is indeed legal?

It seems to me that the issue here that eBay has been in business for a good what? at least 30 years now, but has only been required to collect state sales taxes from buyers, as a Marketplace Facilitator, in the last few years, maybe 3-4 or so.  This requirement is from Supreme Court.  In response to this mandate, eBay probably had to hire a few more employees and develop a process to do  this.  This  probably cost some money.  There are more than just 44 or so different taxing districts within the US, probably close to one thousand, so eBay has to keep up with all of those jurisdictions.  Doubt if there is any  seller here who wants to take on that job.  Since you have been here since 04, and motored along well previously, this came as a surprise to you.  

Feel free to do whatever  you want in protest to eBay's current fee schedule.  It will not change anything. 

[monica-sells]

All this grief and tension over 7 bucks and change..

Nice to see you came to grips with the facts of the matter....

2 things to take with you....

"...I'll leave all the fees to be paid by the sellers and I am now only a buyer on eBay..."

You should now realize that it's the buyers that pay the costs in an exchange of goods and services...

and

"It should be a deceptive trade practice"

There is a LOT of things that should be........but I have never heard an attorney give any advice like that except to placate a client

[stainlessenginecovers]

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@cameratraderjude wrote:

It takes a class action lawsuit to change anything eBay does. Google Ebay Lawsuits and they usually loose.

From a lawyer "It should be a deceptive trade practice - but unless states or the Fed pass a law prohibiting it, you agree to the terms using eBay as a seller."

It's only legal because they put in the agreement and we idiots sign the agreements. 

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There is NO LAWYER in the land that will take on this 'lawsuit' simply because

A.) It is 100% transparent HOW they charge you (see picture) and has NOTHING to do with anyone 'signing' or 'approving' their 'terms and conditions'- as this is RIGHT there under the Blue 'LIST IT' button for you to see that they are charging you and how they arrive at that amount. 

B.) If it WERE "illegal" than ALL Stores could SUE ALL CREDIT CARD PROCESSORS since the advent of the Credit Card in the 1940's as ALL STORES (Walmart, Target, HomeDepot, Macy's on and on...) pay the 'percentage to process- to the processor' on the TOTAL at the Register. 

So, buy a $5000 'handbag' at Macy's- $500 tax (in Washington for example) and the Credit Card Processor charges Macy's 'their percentage' on $5500- NOT $5000

[monica-sells]

@soh.maryl 

Just an FYI...

Local sales tax rates can be tricky since there are over 13,000 U.S. sales and use tax jurisdictions. In simple terms, these  jurisdictions are set areas within which businesses must apply whatever tax rates are set by the tax authority of that set area. Common examples of U.S. sales and use tax jurisdiction include cities, counties, and special jurisdictions that are allowed to levy specific sales tax rates.

[soh.maryl]

Thank you for your helpful info.

I believe I indicated in my post that there are quite a few different taxing jurisdictions and that eBay has to keep track of them and any changes.

My point to the OP was that it takes a certain amount of time and eBay personnel to keep track of those. 

[soh.maryl]

Most smart sellers will have figured out how to price their items for sale so that the buyer is actually the one who will be paying any fees for the seller.  

[soh.maryl]

It's concerning that your account agrees that the eBay fees are illegal.

Might be time to search for a more knowledgeable accountant. 

[soh.maryl]

The IRS is involved in FEDERAL income taxes.

You are questioning the fact that eBay's final value fees are calculated on the item price, the shipping cost and the STATE SALES TAX that the buyer pays and which eBay remits to the treasurer of the state where the buyer's item is delivered.  Two separate and distinct entities.  

[fab_finds4u]

Deceptive trade practice?

Your accountant and lawyer are both misinformed. 

Payment processors charge a fee for the total amount of the sale for the payment they process.  eBay is no different. They want to get paid for making sure the buyer's payment goes into the right pockets. Do you work for free?  I doubt it.

I owned three uniform shops in the 70s and a hot tub and pool maintenance company in the 80s and way back then I was charged a small percentage based on the total deposits that went into my business checking account.  

[janet9988]

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@cameratraderjude wrote:

It takes a class action lawsuit to change anything eBay does. Google Ebay Lawsuits and they usually loose.

From a lawyer "It should be a deceptive trade practice - but unless states or the Fed pass a law prohibiting it, you agree to the terms using eBay as a seller."

It's only legal because they put in the agreement and we idiots sign the agreements. 

I have cancelled any other items I had fro sale but I do realize it was my responsibility now.

I'll leave all the fees to be paid by the sellers and I am now only a buyer on eBay.

I'm certainly one of the idiots but not anymore.

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Don't use a credit card to buy anything. You pay the APR on the tax also.

[solidguitar1961]

If I remember correctly . When in 2018 most states started requiring Ebay to collect tax on purchases . Ebay lowered their percentage at that time from 10 % to 9% to compensate the the fees charged on the tax.

$795 x 10% = $79.50 

$850.65 x  9% = 76.56

This was when most were still using and paying PayPal fees