Fees on Taxes??!! REALLY?

[jehari]

Forgive me if I'm a little slow here, but I just noticed this morning that I'm being charged as my final value fee on the TOTAL sale INCLUDING TAXES!!!  Why would I be charged a final value fee on taxes when that is money I do not receive?  I have no control over taxes.  Some people don't have taxes at all in their state.  I live in a state where it's 10% so why am I being punished?   It's bad enough we get charged based on shipping, but I get the reasoning behind that because people would charge one cent for the item then $99 for shipping to avoid fees, but this makes no sense.  It's complete crap and sheer greed.  Anyone know how to start a petition to stop this theft?

[fab_finds4u]

The fee is on the total including sales tax. True that you aren't receiving the tax but eBay is and eBay wants to be paid  because they're handling the disbursement of the buyer's payment. 

[releasethekraken_1]

Sales tax is determined by where the item is being delivered. If you sell to someone in a state with no sales tax, then no sales tax is charged, and there’s no fee for you. 

It’s not theft, and it isn’t going to change, so don’t waste your time on a petition. Your fees are also about the same as they were when eBay was using PayPal.

[greatstuff80]

eBay charges you because they are doing all the paperwork and paying those taxes to the various states for you. Do you want to do that yourself ?

[dnasilver]

Well, you can then collect and pay out sales tax to every state that requires it on your own. Which is cheaper a few cents charged to you by eBay or many hours of headaches handling ever states different requirements for filing. If there was one thing eBay has done right for a seller that would be managing sales tax. Good luck on trying to doing it cheaper.

[heckofagame]

Amen to that. Ebay collecting and remitting the sales taxes is a gift and is well worth the few cents per transaction that it may cost. And if you are a business, those charges are an expense. Bonus!

[downunder-61]

If I had a dollar for every post on this, well, let's just say I wouldn't need to sell on eBay any more LOL

Do people not peruse the boards for similar topics anymore?

[heckofagame]

Read? Read listings for details? Read postings for information? Silly rabbit....

[kosmosattik]

I seriously doubt fees charged against sales tax merely cover the cost of remittance.  There's some profit built into it.  It's irrelevant in any case.  eBay's financial modeling targets particular margins.  If they were not charging that fee then they'd charge an incrementally higher final value fee instead.

In the end, the only thing that matters is whether one finds value in the service given the total fees extracted.

[kensgiftshop]

@jehari 

So it was ok when Pay Pal charged you a fee on the sales tax, but not Ebay?

[heckofagame]

When Paypal was owned by eBay? LOL

[releasethekraken_1]

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@heckofagame wrote:

When Paypal was owned by eBay? LOL

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How about for several years after PayPal was spun off, and before Managed Payments started? Was it OK then?

[heckofagame]

As I recall, Paypal was charging a higher percentage as well as the extra 30 cents, or was it 35? This old brain forgets.

[jehari]

Wow!  I guess nobody had their coffee this morning.   A simple explanation would have sufficed.  I hope everyone is feeling better now.

[buyselljack2016]

Just like most other funds processors the %age (simplified fees as eBay refers to it) is charged on the entire amount of funds processed.

PP did it. Yes..........................   it was at a lower rate, but PP has raised their fees (%age, and per transaction) for many sellers.  Also, for many sellers,  PP was no longer giving back any of the fees when there was a refund to the buyer.  My fees with eBay/MP are pretty much the same as they would be if I were still in eBay/PP. 

To the "eBay is doing it (sales tax) for me" posters, that logic is flawed, as with the way most state interstate sales tax laws were written many of us would have no obligation to collect/remit sales tax. The laws were written with the intent to "not harm" small sellers by setting high thresholds .   Amounts at a point that small sellers would not meet.