Ebay charges the SELLERS fees on the BUYERS tax

[gasoilsodasign]

I don't think it is right nor even legal for Ebay to charge the sellers fees on the buyers tax which they do to me.  If anything it should be the BUYER paying any fees on HIS TAX not ME!

[fuzzface50]

I wonder if this was ever discussed before here?

[soh.maryl]

". . . which they do to me." You aren't the only one.

Wouldn't you imagine that eBay has at least an attorney or two (hundred) who has determined that it is legal to do so?  

[mybigsale]

I can appreciate your sense of humor. 😆

[zero29zero]

This could be filed under "Old News"

[kensgiftshop]

@gasoilsodasign 

Pay Pal, other payment processors and credit cards all base their fee's on the total amount the buyer pays.

I'm sure if it was illegal, they wouldn't be doing it.

I'm pretty sure they have their lawyers look into it to make sure it's legal.

[mybigsale]

No, it's not fair. The most eBay should charge is a small transaction fee, like other processors charge. eBay combined their transaction fees and commission. Now they charge the one large fee (transaction fee + commission) on the item, shipping, and tax.

[monica-sells]

First off...love your listings...the Mohawk Oil Can you sold is quite the find!

that being said....be glad ebay collects and remits these pesky taxes that have been legislated on us....unless you have a full time accounting department with time on their hands, it would be a monumental task to monitor, collect and remit yourself....

i agree, at some point it would be beneficial for a larger operation to bring it in house, but that's not what was legislated.....unfortunately....

ebay has been upfront and very clear about how Final Value Fees are determined...we either agree and sell here, or disagree and stand on the sidelines

[gasoilsodasign]

Always a sarcastic one

[flyingmvp]

As you can see, this issue was discussed here multiple times, it is what it is, basically everywhere.

But no worries, Ebay has a very special and creative ways of increasing fees and inflating sellers costs.

This month they  started  charging your Promoted listings fees (in case you use it) on top of your item selling price, shipping, tax paid and just then calculate the PL fee,  next month (7/11) they will increase fees for the second time to a minimum ad fee of 2%.  

[tedsrecords]

Yeah, I could understand a payment fee of a couple of percent from the payment company they use, but not the whole final value....you know that the final value fee includes a fee the payment company they use? so, say for instance your final value fee is 10%, 1 or 2% of it is from the payment company and the rest is ebay's fee. But charging the whole 10% final value fee on tax is wrong. 

[aeparts1]

The buyer pays ALL my eBay selling fees, the fee on sales tax included.

I figure my price to achieve my desired profit margin, shipping & tax included, then raise that price by 15% to cover the fees. The buyer purchases the item, & pays for it. When they pay for it, they are paying for the fees.

[the_fancy_fox]

Personally I think it’s messed up.

A FVF is not a money transfer fee it it was or could be, there wouldn’t be different FVF percentages. FVF is just that a final value fee. That’s on the item.  Adding shipping cost to the FVF was a stretch but tax? They jumped the shark on that one.

I have no objection to a money transfer fee.  That applies to all funds transferred. 

there should be two calculations, a FVF percentage and a flat rate money transfer fee. 

Pretty sure that’s beyond the capability of the programmers. 

[the_fancy_fox]

Oh I don’t think so. Ebay historically has pushed the “its legal” mantra anytime there’s a gray area.  At least till it’s no longer legal. 

[reallynicestamps]

You are not technically paying fees on the buyer's tax payment.

You are paying fees on Payment Processing, and the buyer's payment is part of the whole payment.

FWIW - This is Standard Practice in the financial industry.

We got our first merchant credit card account in 1979-1980, and paid fees for using it to Moneris our payment processor.

The entire payment.

Selling price, shipping if any, and provincial (Ontario) sales tax.

And when Canada introduced a federal sales tax, our fees increased because the amount of the payment increased.

Fortunately for our shop, we only had to deal with one of Canada's 13 provinces and territories. We did all our own calculations on how much tax to remit.

With eBay, our customers come from those 13 Canadian locations, 50 US states and various territories, the UK, the EU and Australia.

But eBay is providing the service of calculating those dozens of tax rates for us.

Still don't like it.

But there it is.