Charging Seller Fee For Sales Tax

[ibdonb62]

I am aware sales tax inclusion is stated in the FVF.

Sellers never even see the sales tax.  I can understand if we received it, but it goes straight to the gov't.  So, fees should be based on net profit, not on something you never collect.  If eBay wants to call it a, we're transmitting your taxes for you fee, then call it that for clarity. 

If sellers received those taxes, I would consider that profit. 

With a we'll transmit your sales tax convenience fee, the cost should be the same, not a percentage of the sales tax.

[ajs_coins_and_alchemy]

Its neither a "net profit fee", nor a "we'll transmit your sales tax convenience fee"...

Its a Final Value Fee. Not a "Final (what seller gets out of the deal) fee". It's the final value of the item.

Does the final value cover item cost? Shipping? Tax? Guess what. EBay defines it as all the above. The final "value" is exactly what the buyer PAYS for the item. As the buyer VALUES the item enough to pay that price, S/H & tax.

I think my argument may not be perfect, but its better.

[ajs_coins_and_alchemy]

Not to mention, EBay pays a payment processor. They pay that payment processor a percentage of the total payment. I could be crazy but I believe it was like 2.9%...? So EBay has to pay someone to handle the payment. You pay EBay to pay the payment processor. So EBay pays a percentage on the sales tax (not flat rate), so do you.

[movieman630]

I'm just happy I don't have to have a sales tax number in 50 states.

[luckythewinner]

If sellers received those taxes, I would consider that profit. 

If sellers received those taxes and kept them as profit, that would be a crime. 

the cost should be the same, not a percentage of the sales tax.

Just another way of saying  "eBay fees should be lower".

[inhawaii]

You have every right to feel the way you do.

You can A, sell here and pay the fees.

Or B, don't sell here and don't pay the fees.

[1786davycrockett]

@movieman630 

"I'm just happy I don't have to have a sales tax number in 50 states."

And let's not forget all that monthly (or quarterly) (or annual) paperwork that has to be sent to EACH tax entity in ALL the 40+  states that enforce sales taxes -- definitely another set of headaches which I don't desire, but which eBay  manages for its sellers, which is included in the Final Value Fees which eBay collects from sellers.

A minor annoyance, as far as I'm concerned, if it allows me to escape all those different and complicated tax forms from over 40 different states.

[farmalljr]

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@ibdonb62 wrote:

I am aware sales tax inclusion is stated in the FVF.

Sellers never even see the sales tax.  I can understand if we received it, but it goes straight to the gov't.  So, fees should be based on net profit, not on something you never collect.  If eBay wants to call it a, we're transmitting your taxes for you fee, then call it that for clarity. 

If sellers received those taxes, I would consider that profit. 

With a we'll transmit your sales tax convenience fee, the cost should be the same, not a percentage of the sales tax.

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Doesn't matter how they word it, it's a fee. I don't have to pay someone, like my accountant, so It's not a big deal to me. 

BUT, eBay makes money on collecting the sales tax, makes interest while it's held in their bank account, AND gets to keep part of that money as a "reward" from the states they are paying sales tax to. 

Just like with shipping labels, eBay makes money hand over fist, with us sellers. 

[maxine*j]

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@ibdonb62 wrote:

...  So, fees should be based on net profit ...

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How would that work?  No one but you knows the net profit on any item you sell, or the net profit on your aggregate sales.

A dozen sellers could sell an identical widget for the same price, but each of sellers will have a different net profit .  Each has different costs and expenses to obtain, store, list, pack, ship, etc.

Anyhow, you're looking at the standard and universal practice:  When payments are processed, the fee is based on the total amount the customer is charged -- the total for merchandise, handling, shipping, surcharges, sundry costs, sales tax.  Every time you buy something with your credit card, the merchant pays the fee based on the grand total of the sale to you.

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[monroe67]

"So, fees should be based on net profit, not on something you never collect."

There's that word again:  should.  Well - - - - - -
I think eBay should guarantee income to any seller who takes the time to list stuff.  

I think the US "gov't" should decrease income taxes for everybody, not just for those who can pay their senators hundreds of dollars from their pocket change.  

I think my Condo Board should allow me, the longest-term owner/resident who is also a senior citizen living on a fixed income, to pay the same HOA dues I was paying when I first moved in almost 24 years ago.  
AND I think red cars should have the right of way at red lights.  (I drive a red car.)  

Those things would all be great in my perfect world, except probably that last one about red cars and red lights, but this is an imperfect world.   And there's a lot of "should" floating around.  

You also say, "If sellers received those taxes, I would consider that profit."   

You use the word "profit."  I don't think that word means what you think it means, at least not in that sentence.  

[maxine*j]

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@monroe67 wrote:

"So, fees should be based on net profit, not on something you never collect."

There's that word again:  should.  Well - - - - - -

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I think people should  be required to take a short test before being allowed to sell on eBay, to determine that they have at least a rudimentary knowledge of commerce.  It should be a timed test, too, so they can't just look it up on the web, copy and paste and forget.   A seller show know what a contract is, how credit cards work, the difference between income tax and sales tax, the difference between income and taxable income, the difference between gross and net profit, wgy the shipper rather than the receiver needs insurance, a few relevant bits from the Uniform Commercial Code relating to the sale of good (perfect tender, first sale, etc.).  Stuff like that.  Business 101 stuff. 

Well, that and a special driving test for sellers who drive red cars.  I mean, we all know about people who drive red  cars.

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[monica-sells]

"...I mean, we all know about people who drive red  cars..."

couple that with Chrysler Imperials/Cadillac Coupe DeVille's

clear the roadway

on another note.......

did I miss this is the quarterly statement? It was not mentioned in a detail of the line items for income....

"...makes interest while it's held in their bank account..."

It can't be with interest from investments or short-term holdings...that would violate SEC Regs

[monroe67]

"I think people should  be required to take a short test before being allowed to sell on eBay, to determine that they have at least a rudimentary knowledge of commerce.  It should be a timed test, too, so they can't just look it up on the web, copy and paste and forget.   A seller show know what a contract is, how credit cards work . . . . . ."

Oh, I agree with you about 100,000%.   Even though I know that 100% is all that is required!  
I'd like to write that test, or at least contribute to it.  
Some basic reading comprehension skills should be included, maybe around the 5th or 6th grade level, so that the people taking the test have also probably had some elementary exposure to percentages and know what "percentage" means.  And what "total" and "paid" and "by the buyer" all mean.  

IMO, new sellers should have to prove they know that the Final Value Fee includes a percentage of the Total Amount Paid By The Buyer.   Maybe that could/should be required before a seller is allowed to post a freak-out question about fees here in the Community.  

In my perfect world . . . . .