eBay fees legality

[rubikscollectibles]

Don’t understand how eBay can charge fees for tax and shipping costs as a “total” of a sale? What will our accountants think and how do they itemize this? This is NOT a service we requested if the response is that they’re reporting taxes for us. It’s like me asking Christie’s to please charge me, the seller, the buyer’s tax so I can pay a fee on top of my sellers fee. That’s not the responsibility of the seller to pay on tax. It’s called a double tax. Period. And some guy said well if you’re a merchant credit cards charge for taxes. That’s still egregious but 13.5% on tax cannot be legal. Will see what happens when they get audited. Nothing!

[asset_liquidators]

Since it is not a service you requested, are you willing to collect and remit sales tax to the literally THOUSANDS of jurisdictions across the U.S. each month?

[kensgiftshop]

How can they do it, because they say so.

All payment processors base their fees on the total of the transaction.

[monroe67]

"Don’t understand how eBay can charge fees for tax and shipping costs as a “total” of a sale? What will our accountants think and how do they itemize this?"

        If you're speaking of how your accountants will complete your income tax return and any necessary schedules (such as Schedule C), your accountants should know precisely how to proceed: eBay fees are deductible as a business expense.  

"This is NOT a service we requested if the response is that they’re reporting taxes for us."

        I'm not sure what you are saying here.  If you're speaking/writing about sales taxes that your buyers pay, eBay does not merely report  the amount of money they collect in sales taxes.  eBay actually sends the sales tax funds to the appropriate state where an item is delivered.  

        No seller requests  eBay to collect and remit sales taxes to the 45 United States that collects sales taxes.

        eBay is legally required  to collect and remit sales taxes -- per the laws of those 45 United States.  Those laws all came into existence following the US Supreme Court decision in South Dakota v Wayfair, Inc., on June 21, 2018.  

"It’s like me asking Christie’s to please charge me, the seller, the buyer’s tax so I can pay a fee on top of my sellers fee. That’s not the responsibility of the seller to pay on tax. It’s called a double tax. Period."

        Comparing eBay to Christie's is ludicrous and inaccurate.  Firstly, a majority of eBay listings are Buy-It-Now, and not auctions, whereas to my knowledge, Christie's sales are still solely auctions.  

        What you are warping into something that you call a "double tax" is not two taxes.  Yes, the buyer pays sales tax.  But you, the seller, pay eBay a fee (not a tax).  

"And some guy said well if you’re a merchant credit cards charge for taxes. That’s still egregious but 13.5% on tax cannot be legal. Will see what happens when they get audited. Nothing!"

        For accuracy's sake, since February 14, 2025, eBay's Final Value Fee (FVF) on most categories is 13.6%.  
        Yes, it is legal for eBay to charge their FVF on the total paid by the buyer, including sales taxes.  Do you think you're the first one to ask this question?  

        Why would you be concerned about whether eBay has a tax audit?  

[fab_finds4u]

Somebody has to process (collect) the buyer's total payment. The seller can't do it.

That Somebody  collects the payment, and in turn they make sure all  of that payment goes into the right pockets.  

They want to get paid for all  the work they do.

Thus, the fee is for the total amount paid by the buyer.

I don't understand why eBay isn't entitled to get paid for all the work they do. I bet eBay doesn't argue about the fee they have to pay ADYEN. 

[kensgiftshop]

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@rubikscollectibles wrote:

What will our accountants think and how do they itemize this?

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If they don't know, maybe you need another accountant.

[bonjourami]

" It’s called a double tax. "

No, its not, its called a fee for processing those taxes to the proper state.

[buyselljack2016]

This is NOT a service we requested 

-------------------------

but it is.

 you agreed it to when selling here.

case closed

[gator08041971]

I love these threads.

Just sayin'.  😁😂

I take payments sometimes with my very rarely used Square.  Not always the most cost effective option, but when I only process card payments a few times a year, its worth it.  But they take their % from the entire value of the sale.  Same as eBay.  *shrug

Part of doing business.   eBay has been taking their % from the entire sale now for what, 2 decades?  In the beginning I think they didn't but found out that doesn't work when sellers started small amounts for an item but then a lot for shipping to reduce the % eBay got..  eBay nipped that in the butt quick.  The tax being more recently part of the transaction is simply an extension of the same.

You need to price your items accordingly to cover your investment/shipping/fees it will take to sell them.