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Fees

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.

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Re: Fees

Just so that we can be irritated twice a year we have a "property tax" bill that arrives in January, and "school tax" bill that arrives in September🤣 along with sales tax on most everything that we buy during the year.

 

Buy a chicken at the grocery store to cook it at home, no sales tax. Buy a "hot" chicken at the grocery store and pay sales tax as it is a "prepared" item.

Message 16 of 30
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Re: Fees

Just in case anyone is interested, the State of Ohio not only has a STATE INCOME TAX but also a STATE SALES TAX.  The latter will vary, sometimes greatly, from location to location.  

Message 17 of 30
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Didn't  say you did.  Just  simply stated what goes on in GA.  Don't follow what other states do or don't do

Here is what you stated

" Those states have State Income Taxes instead"  = in lieu of or ran alternative or substitute

 

"I have the right to remain silent but I didn't have the ability." Ron White, Fritch, Texas
"Stay away from negative people, they have a problem for every solution." A. Einstein
"The Devil made me do it!" - Flip Wilson
"If the band can only play loud - they ain't no good - peps too!" J.R. Johnson
Message 18 of 30
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Re: Fees


@soh.maryl wrote:

Just in case anyone is interested, the State of Ohio not only has a STATE INCOME TAX but also a STATE SALES TAX.  The latter will vary, sometimes greatly, from location to location.  


I did post a link in an earlier post that shows all that state by state.  Yes some have both.  


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 19 of 30
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Re: Fees

Lived in Massillon, Ohio in the 70s and recall that.  The worst taxing state I've lived in was Illinois - they put a tax are every thing that move ( like many of the east coast and West Cost states do.  Moved there in late '67 and a six pack of  Coca Cola was  more expensive that a six back of Miller Light beer - that changed real quickly and the state  places  an excise tax of beer and liquor and tobacco product (aka sin tax) plus a  big   increase  in gasoline  sales tax.  All to support their the Chicago Transit Authority  'cause  it was loosing money (the band Chicago was doing just fine).  Saw  them at club Barnaby's on State Street  - Rush street area  when they were called the C.T.A.

"I have the right to remain silent but I didn't have the ability." Ron White, Fritch, Texas
"Stay away from negative people, they have a problem for every solution." A. Einstein
"The Devil made me do it!" - Flip Wilson
"If the band can only play loud - they ain't no good - peps too!" J.R. Johnson
Message 20 of 30
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Re: Fees

My point  was that there ARE states that have both a state sales tax and a state income tax.

And some counties/cities within some states have a local sales tax as well as income tax.

 

Message 21 of 30
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Re: Fees

What I find heartbreaking & a very bitter pill to swallow, is that when I sell as a business seller outside of Europe, ( I am based in Spain), my seller fees now work out at around 25%... Imagine a 1/4 going in seller fees.

 

Had this been the case when starting out in ebay 20 years ago, I would have found it impossible to grow as I did. On  that other account I had built a terrific thriving eBay with over 15,000 items sold, then eBay decided to wipe out 80% of the visibility for most European based sellers, which basically killed that account

Message 22 of 30
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Re: Fees


@soh.maryl wrote:

My point  was that there ARE states that have both a state sales tax and a state income tax.

And some counties/cities within some states have a local sales tax as well as income tax.

 


I'm unsure of what more to say.  My response to your statement was "I did post a link in an earlier post that shows all that state by state.  Yes some have both. " that you are responding to.  I'm not sure what more I can say but YES you are correct.

 

As to the County/city comment.  As far as I know all counties and cities in states with sales tax have local rates that are part of the overall sales tax charged in those areas.  Which is why Sales tax varies across a state that has sales tax.  That is why in any given state a buyer should use their full zip code as it tells the system where within the state they are located so that the Sales tax charged is more accurate.  

 

For example in the County I live in the sales tax is a little less expensive that the County north of me.  


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 23 of 30
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Re: Fees


@aristocratsandgypsies wrote:

What I find heartbreaking & a very bitter pill to swallow, is that when I sell as a business seller outside of Europe, ( I am based in Spain), my seller fees now work out at around 25%... Imagine a 1/4 going in seller fees.

 

Had this been the case when starting out in ebay 20 years ago, I would have found it impossible to grow as I did. On  that other account I had built a terrific thriving eBay with over 15,000 items sold, then eBay decided to wipe out 80% of the visibility for most European based sellers, which basically killed that account


@aristocratsandgypsies 

Can you break that down for us?  I can't find anything that says your fees are that high, but then I may be looking in all the wrong places.  Keeping in mind that shipping costs are not fees charged by Ebay for selling here.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 24 of 30
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Re: Fees

Thanks for the info. I knew they were charging tax as mandated by law. I don't check every single transaction but most and saw the tax backed out of the transaction before Ebay calculated my fees which was why I was surprised to see the tax as part of the transaction. I am not happy with the shipping being included either but that has been going on for quite awhile. I did switch to the Ebay international shipping from the global shipping program and assume Ebay charges the buyer a handling charge but find it unfair to add that to my calculated fees as part of the whole transaction. Probably didn't read the fine print there. The road maintenance and food delivery fee was the first one I received, is that charged by my home state or the state it is being shipped to? As some others have commented, government is in the business of finding ways to generate more revenue from where ever it can.

Message 25 of 30
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Re: Fees


@mcrhubarb wrote:

Thanks for the info. I knew they were charging tax as mandated by law. I don't check every single transaction but most and saw the tax backed out of the transaction before Ebay calculated my fees which was why I was surprised to see the tax as part of the transaction. I am not happy with the shipping being included either but that has been going on for quite awhile. I did switch to the Ebay international shipping from the global shipping program and assume Ebay charges the buyer a handling charge but find it unfair to add that to my calculated fees as part of the whole transaction. Probably didn't read the fine print there. The road maintenance and food delivery fee was the first one I received, is that charged by my home state or the state it is being shipped to? As some others have commented, government is in the business of finding ways to generate more revenue from where ever it can.


Sales tax is paid by the buyer.  Ebay takes it and processes it on to the proper State.  Sellers pay their fees on the total amount the buyer pays which includes sales tax.

 

There is currently only a couple of States that charge an additional road or food delivery tax.  Still Ebay is required by law to collect that FROM the Buyer.

 

You as the seller are not PAYING these State taxes, the buyer is.  But you are charged the FVF on the TOTAL amount of money the buyer pays you to include for sales tax.  That is stated clearly in the Selling Fees Policy page, which I gave you a link to earlier in the thread.

 

On that 50 cents you don't like,  you pay approximately $0.07 cents in fees.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 26 of 30
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Re: Fees

Hi,

Apologies for late reply, I couldn't work out how to access this thread LOL

OK, I managed to pull up details of an item I had sold listed on .com, for $319,00 US$ & also showing you the figures regards another item sold last week to the USA listed on eBay.UK for £220.00 (285,00 US$)I am not going to bother switching all the UK £s to $s, but these are the exact figures as I see them on the invoice...

 

Here are the .com listed fees

 
319,00 US$  Item sold price
 38.00 US$  shipping, the item was going to Brazil
357,00 US$ (total payment) 
-59,08 US$ original tariffs pre taxes
 -11,78 US$ International tariff/currency conversion fee
-12.48 US$ taxes/ VAT at 21%
 -71,96 US$    total seller fees
 Then I have to pay the shipping at 38.00 US$ so works out at nearer 25%

 

Item sold on .uk..

£220.00 item   --- ($284)

£25.00 Postage
£21.74 Sales tax*
£266.74 Order total
-£42.12 Transaction fees
£202.88  Order earnings from which I then pay
-£23 in shipping +  £2.50 for the packaging
£177.38 ( $229 ) total earnings, so around  $50,  around 20% in overall fees,
 
Had I listed this second item on ebay.com, where I would have had only a three month window of visibility, the fees would have been closer to $65 for eBay would have charged me both international tarrif/currenvcy conversion fee, & taxes/VAT... yet most business sellers still naively believe that selling on eBay costs around 12% in fees, they actually work out at 2x
 
Sitting down and actually working out my fees to eBay was an eye opener
x's
Message 27 of 30
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Re: Fees

@aristocratsandgypsies 

My bad, I didn't realize you were not in the USA.

 

International Tariff and Currency conversion fees are NOT the same thing.  A currency conversion fee is charged by the bank converting the form of currency being paid with into the currency required to pay for the particular item you are purchasing.  That is NOT an Ebay fee .

 

VAT is also not an Ebay fee but a tax.  Taxes of any kind do not stay in Ebay's pocket and therefore not an Ebay fee.  A cost of sales certainly, but not an Ebay fee.

 

Ebay fees are the final value fee they charge you for the total amount a buyer paid you for the purchase of an item.  The buyer pays you for shipping.  They give you money to cover what the shipping charges would be or should be.  

 

Ebay does not charge taxes, your country does.  Ebay is just required to collect and remit them.  That does not make them an Ebay fee.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 28 of 30
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Re: Fees

Hi,

Yes, you are right, but we do pay seller fees on taxes which the USA is charging its buyers, we brits tend to lump all costs together & call them eBay selling fees.

There is still no getting around the fact that it now costs around 20% to sell internationally.

"(

Message 29 of 30
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Re: Fees


@aristocratsandgypsies wrote:

Hi,

Yes, you are right, but we do pay seller fees on taxes which the USA is charging its buyers, we brits tend to lump all costs together & call them eBay selling fees.

There is still no getting around the fact that it now costs around 20% to sell internationally.

"(


Ebay fees are the costs of selling on the site.  ONLY Ebay fees.  While shipping costs are part of the cost of sale, they are not fees charged and kept by Ebay.  So while your Costs of Sale may be 20%, your Ebay fees are a lower percentage unless you are using promoted listings and setting the additional FVF that you are paying that totals your FVFs to about 20%.

 

There is a difference between Ebay fees and Cost of goods sold.  Ebay fees are PART of COGS but not everything that goes into COGS is an Ebay fee.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
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