Final Value Fee charged on taxes

[shred-moto-parts]

Did you know that Ebay charges a final value fee on the taxes collected for each state?

Totally unfair to charge me 10% on taxes collected that I'll never see.

Your thoughts?

[american-photography]

Sales tax is not included in final value fees.  Only the payment processor charges a fee on the total payment.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees

[dhbookds]

@american-photography 

Sales tax is included when Managed payment figures the fee.......

Subject has been discussed quite a bit.....no one likes it, but no sign of any change by ebay..........

[comics-scifi-collectibles]

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@american-photography wrote:

Sales tax is not included in final value fees.  Only the payment processor charges a fee on the total payment.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees

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This is not correct for sellers in managed payments. Since the payment processor, Adyen( MP) processes the total amount a buyer pays as one payment the new "simplified fee"  is charged on the total that a buyer pays.

The fee is 12.35% total for sellers without a store OR 11.5% with a basic store and up for most categories, but the fee does vary.

While there are minus in MP there are some pluses too.

If a seller is TRS+ the discount now applies to the total sale.

If a full refund is issued then the seller gets back all of their fees now too. 

MP store fees:

https://www.ebay.com/help/selling/selling-fees/store-fees?id=4809

MP Non stores: 

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees-managed-payments-sellers?id=482...

[shred-moto-parts]

From ebay's fee page.

"We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale is the entire amount the buyer pays, including any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees"

[american-photography]

To clarify:  No final value fees are charged on sales tax to those who are not in managed payments.

Final value fees

We charge a final value fee when your item sells.

This fee is calculated as a percentage of the total amount of the sale. The total amount of the sale is the amount the buyer pays, including any shipping and handling charges. Sales tax isn't included in the calculation.

[corvettestainless]

Well; someone has to pay for all those thousands of tax filings that have to be done for each county 4 times a year. 

Ebay could just state 'we don't charge FVF's on sales tax. The new FVF rate is 14%. 

[alcoforever]

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@shred-moto-parts wrote:

From ebay's fee page.

"We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale is the entire amount the buyer pays, including any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees"

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What you have cited is from the Managed Payments page.   If you are still on paypal, there is no FVF on the sales tax.

[dhbookds]

Ebay could just state 'we don't charge FVF's on sales tax. The new FVF rate is 14%.

I realize what you are saying.......but people may interpret you as saying the new FVF is 14% and it isn't for all categories.  I believe it is for books......

Point being EVERY seller should look at and know the fvf for every item he sells before he lists it.........

[luckythewinner]

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@shred-moto-parts wrote:

Did you know that Ebay charges a final value fee on the taxes collected for each state?

Totally unfair to charge me 10% on taxes collected that I'll never see.

Your thoughts?

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If you are paying eBay fees on the sales tax, then you must be in Managed Payments - and if you are in Managed Payments, you are probably paying MORE than 10% on the taxes collected 🙂 

[kelsi-1968]

That's bull **bleep**

[coastaltechsolution]

You are replying to a post from 09-28-2020 08:49 AM

How do you know it was not correct at the time?

[baydealz]

THANK YOU FOR POSTING -  I just saw this upon my review last night - it's such an egregious ripoff money-grab, I question their ethics even more.  I only looked because I got my first sale in a while since I stopped listing this year.   This is not a marketplace for sellers.  I think we can whine all we want but that list is so long now that we just gotta acknowledge they don't want us.  I've said that for a while and acknowledgement was first step but now I gotta go through other steps to this intervention. 

[mam98031]

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@shred-moto-parts wrote:

Did you know that Ebay charges a final value fee on the taxes collected for each state?

Totally unfair to charge me 10% on taxes collected that I'll never see.

Your thoughts?

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If there is a seller out there that isn't aware of this, they simply haven't been paying attention for YEARS.  

Ebay stated collecting their fees on sales tax when you entered Managed Payments.  Before that PayPal charged you their fee on Sales tax / the entire amount the buyer pays.  But now Ebay is your money processor.  So for many this started in July / August of 2020.

It did take Ebay until the end of 2021 to get all sellers onboarded to Managed Payments.

I don't like it any better than anyone else, so I get your frustration.  But I don't understand the timing of your complaint.  For many of us we are approaching 5 years of Ebay being our money processor.  

Have you just discovered that you are paying fees to Ebay for the entire amount the buyer pays?

[baydealz]

I'm not in managed payments and just saw it as well.  Do the math, it's somewhat hidden.

EDIT - maybe I am in managed payments since I let them take payment. 

This monster has just gotten out of control, I have better things to do...