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eBay fee processing

Why is it that eBay adds item purchase price, insertion fee, final value fee, shipping fee all together before calculating sales tax???? Sales tax should be only on item purchase price. I purchase a label from eBay, then on my own I purchase album shipping box, bubble wrap, tape, fragile stickers, my time and effort to ensure the best possible packaging for my buyer, and I then go to the USPS office. And eBay collects all the fees and is in effect stealing from we the sellers.  I also have an issue with funds owed to me from eBay for erroneous charges. They said 1-2 days processing time, that was on June 30, 2025. 1-2 days ended 9 days ago. How can we, the sellers, dispute these fraudulent activities exhibited by EBAY???

Message 1 of 7
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6 REPLIES 6

Re: eBay fee processing

Sales tax is calculated based on the laws of the state the item is being delivered to. Some states include shipping in the calculation, some do not.

 

eBay fees are calculated based on the entire amount the buyer pays, including sales tax, if any.

 

eBay gets to decide how fees are calculated. Individual sellers get to decide whether it makes sense to list an item on eBay or not.

 

eBay could calculate fees in a different way, but then the fee percentage used would be different in order to bring in the same amount of revenue.

Message 2 of 7
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Re: eBay fee processing

Some states also require the sales tax to be applied to the shipping charge.

Like it's been forever, their fees are based on the total amount the buyer pays.

Have A Great Day.
Message 3 of 7
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Re: eBay fee processing

insertion fees, FVF are deductions, they are not added to the value of the item to calculate the sales tax

Message 4 of 7
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Re: eBay fee processing

To the best of my knowledge, eBay's final value fee charged to sellers is calculated on the total amount the buyer pays the seller.

The buyer doesn't pay the insertion fee or the final value fee, so those are not included when the final value fee is calculated on the purchase.  

Am also pretty sure that sellers are shown the way the final value fees are calculated before they begin to sell here.  

Message 5 of 7
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Re: eBay fee processing

May want to actually read ebay policies you agree to understand & follow prior to use of the site: Tax Policy or Paying Tax on ebay Purchases

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Re: eBay fee processing

"Sales tax should be only on item purchase price."

Each of the 50 United States gets to make its own decisions -- laws -- concerning what types of things are subject to sales tax and what is not.  

Five of the 50 United States choose not to impose sales tax on anything.

Of the remaining 45 United States, more than half of them have laws requiring sales taxes on shipping costs, in addition to the "item purchase price", on things bought and shipped into their state, from online sales such as eBay, from catalogs, TV shopping channels, etc., etc.  

What is ONE of those states that requires sales taxes on shipping costs?  
                                                                    New York State

Message 7 of 7
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