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EBAY CHARGES SELLING FEES ON SALES TAX 2022

Selling fee should only be on the selling price as in 12.55% of item sold amount selling price + the $0.30 fixed order fee.

 

NOTE: eBay is charging the seller when items are sold, the EXTRA ON TOP selling fee of 12.55% on the tax amount they collect from the Buyer.

Thus, eBay is making 12.55 % on the tax they are collecting to thew seller.

Most sealers like me are selling items at a lost, just to get rid of items,

The Shipping sometimes cost more that what we seller are making on one item!

This is so Unfair in so many ways and SHOULD BE ILLEGAL on so many points.

Message 1 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022


@dbfolks166mt wrote:

Why are you yelling at me? I’m not the only one commenting or viewing this thread. There have been over 8100 views and 165 comments.

 

Who cares how old a thread is?

 

Not yelling at you hoping the moderators pick this up and close out this post for additional comment. I have found that often the moderators pickup this type of comment and close out the post. 


All caps is yelling in the written form.

 

A post on the threads is NOT how the moderators might locate a thread that needs to be closed.  You need to notify them.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 181 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022


@dbfolks166mt wrote:

Sometimes posters think that by posting something like that it will get the thread closed.  However a post on a thread doesn't have that effect.

 

Actually it does. I have made similar comments in zombie threads and often times within a day I notice the post has been closed out to further comment and my comment has been removed. 


No it doesn't.  You need to report it.  If you have had success in getting threads closed just because you posted something on a thread, it is highly likely that someone else actually came through and reported the thread.  So while you think the post has something to do with it, it isn't likely the case.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 182 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

I know.  For some reason sellers didn't mind paying it to PayPal, but they really hate paying it to Ebay for the same service.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 183 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022


@cnofear81 wrote:

It's not even 12.55 percent it's 12.9 percent on my sales.And I agree they are scamming the sellers by doing that final value fee based on the taxes they collect from buyers. There has to be a law that is being broke by eBay.  And they also take the buyers shipping cost without reimbursing the seller for that label purchase.


Hi @cnofear81 

 

I am a little confused by the highlighted statement in your post above.  If a Buyer pays the item cost and the shipping cost that a Seller charges then there is no reimbursement required since the Seller has already been paid that "shipping cost" money.  If the Seller prints their labels through eBay, in many cases, they get a discount off the money the Buyer paid them to ship the item (there is no discount for USPS Media Mail labels).   

Regards,
Mr. Lincoln - Community Mentor
Message 184 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

eBay's fees on the buyer's purchase, which are charged to the seller, are NOT remitted to the state.

The amount of the state sales tax is remitted to the appropriate state treasury.  The FEE that eBay charges on that amount is kept by eBay, just like the rest of the fee, and is presumably used by eBay to help cover the cost of keeping track of hundreds of state sales tax figures and remitting same.  

Message 185 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

No part of any fee or any other money is remitted by eBay to the Federal government.  

Message 186 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022


@cnofear81 wrote:

It's not even 12.55 percent it's 12.9 percent on my sales.And I agree they are scamming the sellers by doing that final value fee based on the taxes they collect from buyers. There has to be a law that is being broke by eBay.And they also take the buyers shipping cost without reiumbursting the seller for that label purchase.


@cnofear81 

 

For most categories, sellers without a store do pay 12.9% and have for a few years now.  

 

Many posters have said there must be a law being broken, but no one has come up with that law yet, so can you?

 

All Money Processors charge you their fee on the entire amount received from your buyer, without any exceptions.  PayPal did that all the years we used them.

 

It appears you need to pay a little closer attention to the details of your transactions going through Managed Payments.  Sellers are ALWAYS paid the amount the buyer pays for the product AND for separate shipping if the seller charges that on the listing, LESS any FVF, the 30 cent per transaction fee and the COST of the shipping label if you print it through Ebay and have it paid via your MP account.

 

So if you charge $5.00 on a listing for shipping, the buyer will pay that to you.  Then you create the shipping label and have it paid for from your MP account.  Let's say the shipping cost you $4.00.  So your net would be $5 - $4 = $1.00 less your FVF on the $5.00, so about 65 cents, you end up netting about 35 cents.  Which is pretty good since shipping isn't suppose to be a charge you make a profit off of.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 187 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022


@cnofear81 wrote:

You don't understand what he says. eBay charges final seller fee based on what the buyer pays for a tax and it should only be what the price of the item is listed for. Not all that extra crap eBay charges the buyer.


Thank you for your concern.  I've been here for awhile and processed quite a few transactions since MP started.  

 

Sellers have been paying a FVF on shipping for close to 12 years now.  As for the sales tax, that happened when we entered Managed Payments.  Before that we paid PayPal their fees on the entire amount that a buyer paid.  But for some reason some sellers seem to think it was OK for PP, but not for Ebay.  The logic of that escapes me.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 188 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

PayPal like almost all other payment processors charge about 3%, and of course don't also get something back from the state.  Ebay was the first and only one I know of that charges 12.9% processing on the tax payment, as well a getting a percentage from the state to cover the tax collection costs. 

 

While this may still come out the same on the bottom line for most sellers, it is not ordinary nor an industry standard.  Currently there is no law of any kind I know of that prevents ebay's double dipping like this.  Although it has been reported some states, I know mine is, looking into this practice, since they are already giving the venue a portion of the tax collected  to cover their collection service.  

 

It will be interesting if other venues follow, or if some states make tax law changes that affects this.  But right now it is what it is with your only recourse to call your state's revenue office or representative to see what they have to say about it.

 

Consider if B&M stores started tacking on a separate extra fee to cover the cost of collecting and remitting sales tax, after all they don't get a kickback to do so like online venues do.   Maybe no law against this either, but it certainly would cause some complaints.  Of course it is just hidden in the cost of the item, just like we hide free shipping.

 

 

 

Message 189 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

If the states changed the law and ebay couldn't collect the FVF on the sales tax they will raise the base FVF fees to make up for the loss revenue. Instead of 12.90% FVF they could go to 13.50% on the price of the item and shipping only and come out the same in the end. 

Message 190 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

Yes I agree, but PP does not collect and remit sales tax.  They aren't required to, but Ebay is because they are a market place as well as the money processor.

 

I further agree that Ebay charges a higher percentage on the sales tax than any other site does as well.  By about 10%.  Not all other sites charge their fees on the sales tax, like Amazon does not.

 

 


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 191 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022


@theteamsetguy wrote:

If the states changed the law and ebay couldn't collect the FVF on the sales tax they will raise the base FVF fees to make up for the loss revenue. Instead of 12.90% FVF they could go to 13.50% on the price of the item and shipping only and come out the same in the end. 


I'm not sure that is true.  Before we entered MP, Ebay did not charge their FVF on sales tax and they were processing sales tax payment for the respective states for a couple years by that point.

 

The reason it is now part of the FVF structure is because Ebay wanted to move to a Simplified Fee program.  Meaning a fee on the total paid by the buyer.  What Ebay calls a simplified program has always had very mixed experiences by sellers.  

 

Back in October of 2018, Ebay moved to Simplified Returns.  And that is when the returns process rather blew up on sellers.  So when Ebay uses the word "simplified" I tent to clinch my teeth waiting for what will happen next.

 

I didn't speak at all to the additional FVF sellers have to pay, specifically on the sales tax in my previous posts, but I'm very much aware of it and have never liked it.  We are all paying about 10% more of FVF specifically on the sales tax than most if not all other sites similar to Ebay.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 192 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

While most of us would prefer less fees to more fees. On average the collection of FVFs on sales taxes adds about .70% overall on sales or 70 cents per $100.00. I make sure add to my expenses and add to my prices lke every other expense I have selling here. 

Message 193 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

When a buyer has to pay $40-60 tax fee for purchase and that amount gets added to that 12.9% fee you have to pay you really don't care about paying that much that you should not be responsible for?I sell an item for $425 but my final seller fee is based on $465 for what the buyer paid. You do the math and see the big difference on the payout. Minus 12.9%

 

     Simple solution and math is easy. Using an average of 9% sales tax (middle of the road rate) which equates to $9 for every $100 in value, which equates to $1.16 added to the FVF simply add $1.30 to the price of your listed items. Difference between the $1.16 and the $1.30 is because you also pay the 1.29% on the added cost of the item. 

     So for the item in your example assuming the $40 difference is for the sales tax of 8.6% on the $425 item. The additional FVF as a result of the sales tax is $5.16. So if you had added $5.52 to the selling price the impact would be negligible. 

Message 194 of 195
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Re: EBAY CHARGES SELLING FEES ON SALES TAX 2022

Hi everyone,

 

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

 

Thank you for understanding. 

Message 195 of 195
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