What the heck is a "tax invoice"?

[revenue-collector]

Starting today I'm seeing a blue popup in the EMP Invoices page that says "Now includes tax invoices"... which apparently is something different from normal invoices.

Per Google it appears to be an EU/UK VAT thing, so why am I seeing it on US eBay as a seller based in the US? Am I supposed to be doing overseas tax reporting now???

If that's the case, I'm just going to disable international sales. Between the high shipping rates, 2-month shipping times and increased number of unhappy international buyers due to times in transit, it just not worth it to take on yet another administrative burden. It's too bad, because about 15-20% of my sales are international, but enough is enough.

[revenue-collector]

Found the help page which makes things even more confusing:

Your Tax invoice is issued for services rendered and includes all all applicable seller fees. Every month you'll receive an email to let you know your Tax invoice is available to download. Your Tax invoice shows you the applicable taxes on fees already deducted from your Available, Processing, and On hold funds. If you sell on multiple eBay sites, you'll see the fees and taxes grouped by currency.

Wait... what? Please tell me that's a typo of some sort and we're not now paying some additional tax on the fees we pay to eBay.

Since sales tax isn't included in gross payments the way it was with PayPal, is this "tax invoice" so that we can reconcile the FVF that eBay charges us on sales tax, or is there something more we need to do with this mysterious thing?

(I was just switched over to EMP a few weeks ago, so I don't even have a "tax invoice" to look at.)

[rebell45]

Let's see, you are buying a service from eBay, that is to sell on their platform. And when you buy a service, some states charge you sales tax on that. eBay is located in California where they tax everything.  Maybe...

Truthfully, I have no idea what they are doing.

[rebell45]

Maybe Illinois? I hear they tax everything too.

Tax on eBay fees

Depending on the seller's location, Value Added Tax (VAT), Goods and Services Tax (GST), or similar consumption tax may apply to eBay selling fees.
If eBay is required to collect such taxes in your jurisdiction, eBay will add the tax as a separate charge on your seller invoice or include the tax in our fees.
Please ensure that your registration address is up to date, so that we know where you are based.

[revenue-collector]

As of January 1, 2021 Illinois does not tax services. Given the state's dire fiscal woes, it wouldn't surprise me if they do at some point, but not yet.

[risronal]

What is EMP

[downunder-61]

EMP - Managed Payments (or electro magnetic pulse)

[calm-mix]

Its is confusing as hell. If this has anything to do with a service being taxed, the service provider would be who is taxed right? So if Ebay is getting taxed, they are taking out that tax from managed payments?

I just got my first " Tax Invoice" for April 2021. Never got one before. What does this even mean? Do I owe them an additional $569.39? Im in NJ, not sure what the taxable laws are here.

[ians_vintage]

Just got my first one of these too.

I *think* it is the amount of tax that you've already paid to eBay as part of their fees?
I don't think this means the "total current invoice in USD" is anything more than "Fees you've paid in total".

[stuff4divas]

It looks like all they did was make 2 separate invoices instead of just the one invoice, separating particular fees.

[salesabration]

I am confused.  It says it is final value fees.  Is it an invoice?  If so, then who is to pay it?  It isn't clear at all.  ebay needs to explain this, or some sellers are going to head for the hills.

[ddtjman]

I got hit with $380 tax invoice, in addition to my normal invoice. If this is additional fees, I'm done with ebay.

[chrisv348]

I also for the first time received this "tax invoice" today (4/18).   Since it says "invoice" I'm concerned.   Are we responsible for paying this.  If so, I will be done selling with Ebay effective immediately.   I've always felt that Ebay tailors to buyers, not sellers.   If I am responsible for one more fee, tax or commission I'm done with Ebay.  

[perfectchoicesus]

Hi! I'm on the phone with someone from eBay Help Center, they didn't know that this will be set, so, after 30 minutes of checking everything with the accounting area, she is telling me that is not an invoice, you don't have to pay it (they already took the money hahaha) it is like just a REPORT, to let you know about what eBay charge you.

That is the NEW way they decided to report the monthly charges. She let me know that with this report they let us know that Fase 2 in their managed payment system has started. 

[cascadescarpenter]

Came here looking for answers and looks like I'm just as confused as everybody else!?! 

Look, I get it, we have to pay fees to use EBay's platform but if this is an additional tax we owe, in addition to the fee hike EBay recently hiked up after disassociating themselves from PayPal...

Then I'm done using EBay...there are other venues that let you keep more of your money.