Being taxed on items I’ve sold even though I live in Guernsey?

[minnimon97]

We do not pay VAT or goods tax here in guernsey and eBay are now taking tax fees out of my PayPal when I sell items? Is this correct? 

[soh.maryl]

Are you referring to taxes or to VAT or perhaps to eBay's Final Value Fee?

[minnimon97]

So my PayPal transaction details says ‘tax collected by eBay’ and then the fee taken 

[lacemaker3]

If these items were delivered to the USA, then it's probably the state sales tax. eBay is required to charge the buyers sales tax for many of the states in the USA, which is collected from the buyers at payment. So it is included with the initial payment, then transferred to eBay so they can send it to the buyer's state. The sales tax is determined by the state where the item is delivered, and it doesn't matter where the seller  is located. 

eBay may be collecting tax in a similar way for some other countries also. I believe that they may be doing this for items sold to Australia, and items being sold to the UK from outside the UK as well.

[releasethekraken_1]

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@minnimon97 wrote:

We do not pay VAT or goods tax here in guernsey and eBay are now taking tax fees out of my PayPal when I sell items? Is this correct? 

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That tax is paid by the buyer, based on their location. It doesn't matter where the seller is. If you sell to someone in Guernsey, and if there's no VAT/goods tax there, I'd expect that you wouldn't see tax on that sale.

[reallynicestamps]

VAT is paid by the buyer not the seller. 

What you may be seeing is the VAT or the IS state sales tax (US sorry). This is passed through your PP invoice to your buyer but you don’t pay it or receive it. 

You do do pay fees on the tax since it is part of The buyers payment. 2.9percemt domestic or 3.9 percent foreign.