07-26-2022 08:50 AM
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!
07-26-2022 12:02 PM
@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?
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.
07-26-2022 01:56 PM
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.......
07-26-2022 02:32 PM
The final value fee, which is a payment processing fee goes to eBay, not the seller, not the state.
07-26-2022 02:34 PM
Yep, color me completely unsurprised. (I think it's color #65 in the 64 count box of Crayolas.)