Where's the Sales Tax "Overcharge" go?

[quincydepot]

Good morning,

Please don't answer if you REALLY DON'T know.  I don't need supposition.

eBay now gets 12% FVF on every aspect of my sale. 

Before Mangled Payments, eBay received 9% FVF and I paid 3% to PayPal or whoever I used.

Where does the extra 9% eBay collects on State Sales Tax go?  

1.  Do they pay the extra 9% to the state of PA as required by PA Law?

2. Do they profit from the sales tax collection?

3. Do they pay PA State Income Tax on the profit the made from PA sellers?

Last year, under Mangled Payments eBay collected $1080.72  in "profit" from me with the extra 9%.

eBay has not answered this inquiry and I doubt they will.  Thanks!

[lacemaker3]

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@quincydepot wrote:

PayPal charged  ~3% to collect the tax while eBay charged 9% more.  

Old System - $100 Item $6 Tax  FVF $9.00 PayPal Fee $3.18 //  $100 - $9 - $3.18 Seller Rec'd $96.8 <$6 to state.

Mangled Payment - $100 Item $6 Tax FVF  $12.72 Seller Rec'd $87.28

Old Way - Seller Gets $90.80

New Way - Seller Gets $87.28 

Is eBay keeping the extra $3.57, sending it to the state since it was generated in sales tax collection?

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I'm sorry, but your numbers are wrong. PayPal used to charge 2.9% plus $0.30, and eBay used to charge 10% (in most categories). Both companies have raised their fees since then.

The so-called "extra" funds you are asking about are because of an increase in eBay's fees, which eBay keeps. eBay fees are calculated based on the buyer's total payments, including shipping and sales tax.

[monica-sells]

I'm not saying you did not reach the amount required to be "overcharged" 1080.72

that would require over 12,000.00 in collected Sales Tax (based on an average 6% buyer state)

which resolves to over 200K in sales for the year.......

1. We have, 9% × x = 1080
2. or, 9100 × x = 1080
3. Multiplying both sides by 100 and dividing both sides by 9,
   we have x = 1080 × 1009
4. x = 12000
   
   
5. Now, even IF you 'overpaid' 1080.72 for the year, don't you agree that is worth it to NOT have to file Sales Tax collected from your buyers 
6. Food for thought: One penalty from a state could cost that much.
7. Sellers face a vast landscape of rates and jurisdictions that can make compliance a challenge. There are over 11,000 standard sales tax jurisdictions in the United States in 2020. Each jurisdiction has a distinct aggregate sales tax rate based on a unique combination of factors, including sales taxes levied by taxing authorities at the state, county, city, and district levels.

[soh.maryl]

The final value fee, which is a payment processing fee goes to eBay, not the seller, not the state.

[soh.maryl]

Yep, color me completely unsurprised.  (I think it's color #65 in the 64 count box of Crayolas.)