Fees

[mcrhubarb]

Hi Everyone, When did Ebay start adding the sales tax to the sold item and charge the buyer a percentage of the tax? Also what is the 50 cent fee (on a $100 item) for delivery and food delivery? When did this start? Ebay doesn't deliver the package nor is there any food involved.

[mam98031 · Accepted solution]

I think you have a couple of misunderstandings.

Ebay was required by LAW for specific States starting in 2019 to charge State Sales Tax for states that passed their MFLs [Marketplace Facilitator Laws].  Fees were NOT charged on the sales tax that buyers paid at that time.

When fees started on Sales tax, it was when you entered Managed Payment, NOT before.  It ONLY started AFTER each of us entered Managed Payments between July 2020 and the end of 2021.  Before that, there were NO fees charged by Ebay on Sales tax.  Now PayPal, because they were our money processor, DID charge fees on sales tax, as they charged their fees on the entire amount paid by the buyer.  When Ebay became our money processor, they started doing the same thing.

As for these newer little fees that sellers are seeing for some buyers, that is driven by the STATES, not Ebay.  Ebay has NOTHING to do with the laws of any state.  It is the States that are adding on these additional fees to sales tax.  Ebay can NOT control that.

I hope that helps.

[slippinjimmy]

Collecting Sales Tax for some States as early as 2018, by 2022 virtually all States.

As far as charging fees on Sales Tax, that started in July 2022.

The Delivery Tax which only applies to a couple of States started in 2022.

Have you just realized these changes?

FYI - eBay also collects VAT for the EU, UK, Australia, Norway, Singapore and his is also part of the fee base.

I think you need to pay more attention to the Seller Updates!

[mam98031]

Just an FYI---SCOTUS ruled in 2018 which opened the door for the sales tax.  The state of Washington was the first state to get their MFL passed and implemented.  Ebay started collecting and remitting sales tax for the state of Washington in January of 2019.  Other states got their MFLs passed in the next couple of years.  

[meme6253]

Checking on the seller updates will help keep up to date on any changes including fees, So i highly suggest reading them when they come out, because there will probably be more fees or increases.

[nobody*s_perfect]

The sales tax (if any) was always included in the 2.9% that PayPal charged us before sellers switched over to managed payments.

The 50 cent or 35-cent surcharge on internet transactions (including delivery of food and other items)  is imposed by a couple of specific states just because they can.

[monroe67]

"When did Ebay start adding the sales tax to the sold item and charge the buyer a percentage of the tax?"

Other very reliable posters here have explained that eBay follows sales tax laws of the state to which an item is delivered. 

Marketplace Facilitator Laws (MFLs) were implemented by the 45 states that impose state-wide sales taxes, beginning in 2019 through 2022.  The states wrote those laws into their codes in order to comply with the decision in the US Supreme Court case of South Dakota v Wayfair, Inc., decided in June of 2018.  

The five states that do not charge state-wide sales taxes are, alphabetically, Alaska, Delaware, Montana, New Hampshire, and Oregon.  

I hope the Original Poster (OP) here has simply used the wrong word (highlighted in red above), and meant to say "seller."  

Buyers are charged the full percentage of their applicable sales tax.  eBay collects those taxes and sends them to the appropriate state's sales-taxing authorities.  

Sellers are charged eBay's Final Value Fee (FVF) percentage on the full amount paid by the buyer.  

Since American eBay buyers usually do pay sales taxes, yes, American eBay sellers do pay a fee to eBay that is based on those sales taxes as well as the item's price, any handling charge, and shipping/postage costs that the buyers pay.  

Never-ending dismay/amusement that a seller with over 2,400 sales does not know this info . . . . . . . . 

[johnrj1226]

But there  are 5 states taht have  zero  sales tax and soon there will be  telephones without a cord and you'll be able to  carry them in your back pocket. or bra.

[mam98031]

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@mam98031 wrote:

Just an FYI---SCOTUS ruled in 2018 which opened the door for the sales tax.  The state of Washington was the first state to get their MFL passed and implemented.  Ebay started collecting and remitting sales tax for the state of Washington in January of 2019.  Other states got their MFLs passed in the next couple of years.  

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@slippinjimmy 

In case you find this interesting.  Here are all the dates that states started charging sales tax on Marketplaces.

States and territories	Effective date	Additional information
Alabama	July 1, 2019	Alabama Department of Revenue - opens in new window or tab The State of Alabama has a program for simplified sellers use tax (SSUT) under Statute § 40-23-192. eBay has collected simplified sellers use tax on taxable transactions delivered into Alabama and the tax of flat eight percent (8%) will be remitted on the customer's behalf to the Alabama Department of Revenue.
Alaska	November 1, 2021	Alaska Remote Seller Sales Tax Commission - opens in new window or tab Alaska does not impose a state level sales tax, however eBay is required to collect sales taxes in certain Alaska local jurisdictions that have adopted the Alaska Remote Seller Sales Tax Commission Uniform Code.
Arizona	October 1, 2019	Arizona Department of Revenue - opens in new window or tab
Arkansas	July 1, 2019	Arkansas Department of Finance and Administration - opens in new window or tab
California	October 1, 2019	Please contact the California Department of Tax and Fee Administration - opens in new window or tab for further information.
Colorado	October 1, 2019	Colorado Department of Revenue - opens in new window or tab Effective 2020, eBay is required to collect sales taxes in certain home rule cities in Colorado.
Connecticut	April 1, 2019	Connecticut Department of Revenue Services - opens in new window or tab eBay Inc. is registered with DRS to collect Connecticut sales tax and will collect sales tax on all taxable Connecticut sales facilitated on our site.
District of Columbia	May 1, 2019	District of Columbia Office of Tax and Revenue - opens in new window or tab
Florida	July 1, 2021	Florida Department of Revenue - opens in new window or tab
Georgia	April 1, 2020	Effective April 1, 2020 the Georgia Department of Revenue has enacted Marketplace Facilitator Legislation. eBay, Inc. is required to collect sales tax from Georgia buyers on behalf of sellers for items shipped to Georgia, unless there is a valid exemption. Please contact the Georgia Department of Revenue - opens in new window or tab for additional information.
Hawaii	January 1, 2020	Please contact the Hawaii Department of Taxation - opens in new window or tab for further information. City and County of Honolulu Bicycle Registration Fee All bicycles in the City and County of Honolulu with 20" or larger wheels are required to be registered. There is a one-time registration fee of $15, and a fee of $5 when transferring ownership of a bicycle. eBay is not collecting bicycle registration fees on behalf of sellers. Buyers should register their bicycles at the main bicycle registration station or by mail, administered by the Department of Customer Services (CSD). See the City and County of Honolulu website - opens in new window or tab for additional guidance on bicycle registration.
Idaho	June 1, 2019	Idaho State Tax Commission - opens in new window or tab
Illinois	January 1, 2020	Illinois Department of Revenue - opens in new window or tab
Indiana	July 1, 2019	Please contact the Indiana Department of Revenue - opens in new window or tab for further information.
Iowa	February 1, 2019	Iowa Department of Revenue - opens in new window or tab
Kansas	July 1, 2021	Kansas Department of Revenue - opens in new window or tab
Kentucky	July 1, 2019	Kentucky Department of Revenue - opens in new window or tab
Louisiana	July 1, 2020	Louisiana Department of Revenue - opens in new window or tab
Maine	October 1, 2019	Please contact the Maine Revenue Services - opens in new window or tab for further information.
Maryland	October 1, 2019	Please contact the Comptroller of Maryland - opens in new window or tab for further information.
Massachusetts	October 1, 2019	Please contact the Massachusetts Department of Revenue - opens in new window or tab for further information.
Michigan	January 1, 2020	Michigan Department of Treasury - opens in new window or tab
Minnesota	January 1, 2019	Minnesota Department of Revenue - opens in new window or tab Effective October 1, 2019 there is no longer a small seller exception for Minnesota and eBay is required to collect sales tax on all sales.
Mississippi	July 1, 2020	Mississippi Department of Revenue - opens in new window or tab
Missouri	January 1, 2023	Missouri Department of Revenue - opens in new window or tab
Nebraska	April 1, 2019	Nebraska Department of Revenue - opens in new window or tab
Nevada	October 1, 2019	Please contact the Nevada Department of Taxation - opens in new window or tab for further information.
New Jersey	May 1, 2019	New Jersey Department of Taxation - opens in new window or tab
New Mexico	July 1, 2019	Please contact the New Mexico Taxation and Revenue Department - opens in new window or tab for further information.
New York	June 1, 2019	New York Department of Taxation and Finance - opens in new window or tab eBay Inc. is a registered New York State sales tax vendor and will collect sales tax on all taxable sales of tangible personal property that it facilitates for delivery to a New York State address.
North Carolina	February 1, 2020	Please contact the North Carolina Department of Revenue - opens in new window or tab for further information.
North Dakota	October 1, 2019	Please contact the North Dakota Office of State Tax Commissioner - opens in new window or tab for further information.
Ohio	September 1, 2019	Please contact the Ohio Department of Taxation - opens in new window or tab for further information.
Oklahoma	July 1, 2019	Oklahoma Tax Commission - opens in new window or tab
Pennsylvania	July 1, 2019	Pennsylvania Department of Revenue - opens in new window or tab
Puerto Rico	January 1, 2021	Puerto Rico Department of Treasury - opens in new window or tab
Rhode Island	July 1, 2019	Rhode Island Division of Taxation - opens in new window or tab
South Carolina	October 1, 2019	South Carolina Department of Revenue - opens in new window or tab
South Dakota	July 1, 2019	South Dakota Department of Revenue - opens in new window or tab
Tennessee	October 1, 2020	Tennessee Department of Revenue - opens in new window or tab
Texas	October 1, 2019	Please contact the Texas Comptroller of Public Accounts - opens in new window or tab for further information.
Utah	October 1, 2019	Please contact the Utah State Tax Commission - opens in new window or tab for further information.
Vermont	July 1, 2019	Vermont Department of Taxes - opens in new window or tab
Virginia	July 1, 2019	Virginia Department of Taxation - opens in new window or tab
Washington	January 1, 2019	Washington Department of Revenue - opens in new window or tab
West Virginia	July 1, 2019	West Virginia State Tax Department - opens in new window or tab
Wisconsin	January 1, 2020	Wisconsin Department of Revenue - opens in new window or tab
Wyoming	July 1, 2019	Wyoming Department of Revenue

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771

[mam98031]

Those states have State Income Taxes instead.

[annadryl]

Was this package for Minnesota? That and at least one other state have implemented this fee on delivery as a sort of transportation tax, as so much more stuff (especially since covid) is being delivered. I suspect some other states or areas might adopt it as well. Ebay does not keep this fee of course.

[johnrj1226]

Here in GA we have both a sales tax and state income tax ranging  from 6% to 9%.  Our  property taxes are very reasonable out side the city limits - $1900/yr , for 2000 sq ft, 3 br, with bonus room up stairs we, use for pool table and music system and stuff, fire place, 2.5 car garage, 1.5 acre of land lots of trees.  City water, paved roads

[mam98031]

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@johnrj1226 wrote:

Here in GA we have both a sales tax and state income tax ranging  from 6% to 9%.  Our  property taxes are very reasonable out side the city limits - $1900/yr , for 2000 sq ft, 3 br, with bonus room up stairs we, use for pool table and music system and stuff, fire place, 2.5 car garage, 1.5 acre of land lots of trees.  City water, paved roads

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I didn't say that states with sales taxes don't have income taxes too, but most don't.  The States called out as not charging sales tax all do have Income taxes instead.  Most voters don't go for sales tax and state income taxes.  

This is an interesting article from 2023.  Some pretty interesting information.  I honestly did not realize that so many states have some form of State Income taxes.  The article is full of all kinds of information by state.

https://turbotax.intuit.com/tax-tips/fun-facts/states-with-the-highest-and-lowest-taxes/L6HPAVqSF

[nobody*s_perfect]

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@mam98031 wrote: ....  The States called out as not charging sales tax all do have Income taxes instead.  Most voters don't go for sales tax and state income taxes.  

This is an interesting article from 2023.   ...

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New Hampshire has no sales tax and no tax on earned income. But oh, those property taxes!! As noted in your linked article, NH does tax interest and dividend income.

[mam98031]

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@nobody*s_perfect wrote:

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@mam98031 wrote: ....  The States called out as not charging sales tax all do have Income taxes instead.  Most voters don't go for sales tax and state income taxes.  

This is an interesting article from 2023.   ...

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New Hampshire has no sales tax and no tax on earned income. But oh, those property taxes!! As noted in your linked article, NH does tax interest and dividend income.

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Oh I respect that.  We have sales tax here in Washington state and HIGH property taxes too.  Well over half of our property taxes are for School stuff.