Taking a percentage from Sales Tax

[heaven_bound4him]

Ive been on eBay for the last 21 yrs, and always liked it and thought it was fair until a few years ago.  But, if you want a million + viewers thats the place to go.. I stopped selling on here around August of this year, sold all of my inventory to an auction house.  So when a friend asked if I could sell some stuff for him, I said sure.. and in doing so I noticed something fraudulent with eBay practices..  When you sell an item for 20 bucks, then shipping is added.. lets say 15 bucks. so now we are at 35.00 then sales tax of $2.10 is added for a grant total of $37.10  Now eBay comes along and charges 12.55% on the total  $37.10 which is $4.31 at 6%.  The problem is, they are taking 12.55% from the sales tax collected too.   Im done with eBay, I will continue to buy but I am no longer a seller.

[mlwaj78956]

So,. My sales from  the year get to $600 I have to report that as income.  Well all sales at events with cash purchases from my buyers will fall into a hole and not get counted.    Love to sell and bend the rules just like our crooked politicians.  

Peace 

[annadryl]

Old thread...

[sunburstshops]

I have been on here for 20 years as a seller. When I started it was 3.5% final value fee no matter the category. No final value fees collected on taxes collected and nothing on shipping charges. Your point is invalid for those of us who started before Ebay made these changes, many in the middle of the night without warning.  It smells beyond fishy.

[bradnmarsha2012]

Still happening though and I talked with EBay about it today 4/30/23. It is happening 

[soh.maryl]

Original message is from 11/25/21.

If you will carefully look at the posted fee information for eBay sellers and buyers, you will find that the final value fee charged to sellers is calculated on the item price, the shipping cost and the state sales tax, if any, plus any other added charges like a Reserve.

Again, the FVF is clearly explained in several places.

Just curious:  When you spoke with eBay on 04/30/23, what did they say "is happening"? 

[auctionexchangeusa]

I actually do not care if it is explained in the FVF terms.  Even if disclosed, charging final value fees on sales tax is wrong.  This seems like an unfair competitive advantage to merchants who are collecting sales tax in their respective states with no mechanism to collect commissions for doing so.

[soh.maryl]

So, if you don't mind me asking, when you talked with eBay about it on 04/30/23, what were you told? 

[soh.maryl]

Can you explain how this is an unfair competitive advantage for certain merchants?

When a buyer from any state, except the five listed above, makes a purchase and has it delivered to his state, he pays state sales tax based on the delivery address of his purchase.  eBay's FVF is charged on the state sales tax as well as on the item price and shipping cost.  Which eBay merchant is immune from this?  

[fairyvixen66]

I have to agree with Heaven as this is the reason I am here...to see if I was the only one being taken advantage of. Ebay says they take say 10-15% from the final amount the buyer paid. This includes the sales tax. They can get away with it because they don't have a set percentage (i.e: 10%-15%) as they can change what they tell you they took if you ask. Yet, in my case they could have only taken the maximum percentage. I sold my item for $175 (This was the listed price, free shipping). They charged my buyer $188.13 (this included $13.13 sales tax) then took their 15% from $188.13 by charging me $28.43. Doesn't seem right to me. Would love to hear from someone other than biased Ebay.

[fairyvixen66]

Oh, I forgot to add that I voted no sales tax in my state and that is the law of the land...no sales tax on anything but alcohol and weed. So my fees shouldn't include a percentage off of sales tax since I sold and packaged in Oregon.

[annadryl]

The sales tax was paid by your buyer, in another state where they do have sales tax. The total payment applies as is normal.

And this thread is three years old.

[varebelrose]

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@heaven_bound4him wrote:

...even if you close your account, which Im going to do in about 3 minutes.

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Its 3 years later and you still have listings, glad you changed your mind!

[kh-vince]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.