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Final Value Fee on Sales Tax

I'm puzzled as to why eBay is collecting a Final Value Fee on the sales tax when their own policy states:
"Once eBay starts to collect tax in the required states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting, and remitting sales tax."
This policy is quoted from this page: https://www.ebay.com/help/policies/selling-policies/tax-policy?id=4348&st=3&pos=1&query=Tax%20policy...

(Expand "Tax on items bought and sold on eBay", then expand "Items sold to buyers located in the United States".)

No charges or fees. So what gives?
Two days ago, I spoke to a customer service rep regarding this and she was stumped. She could not provide an answer but she said I would be emailed with a follow-up within 24 hours. As of this writing, that email has not yet arrived.

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Final Value Fee on Sales Tax

I think you are confusing 2 issues.

 

eBay does not "charge" the sellers a seperate fee to "calculate, collect and remit" the tax to the states.

 

eBay does include tax in the FVF.  Item price + shipping + tax = FVF + .30 cents.

 

 

klhmdg  •  Volunteer Community Mentor
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Final Value Fee on Sales Tax


@mezco wrote:

I'm puzzled as to why eBay is collecting a Final Value Fee on the sales tax when their own policy states:
"Once eBay starts to collect tax in the required states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting, and remitting sales tax."
This policy is quoted from this page: https://www.ebay.com/help/policies/selling-policies/tax-policy?id=4348&st=3&pos=1&query=Tax%20policy...

(Expand "Tax on items bought and sold on eBay", then expand "Items sold to buyers located in the United States".)

No charges or fees. So what gives?
Two days ago, I spoke to a customer service rep regarding this and she was stumped. She could not provide an answer but she said I would be emailed with a follow-up within 24 hours. As of this writing, that email has not yet arrived.


I have highlighted in "red" where your confusion lies.......e-Bay collects sales tax, if applicable, from your online sales and remits same "on your "behalf" so that you as a Seller, do not have to.  This is huge as the compliance on your own as a Seller would be a behemoth to deal with and very cumbersome.

 

You as a Seller, will always pay fees on the total transaction - Item + Shipping + Sales Tax and then in addition, you are charged a 30 transaction fee to the FVF total.  

 

Sorry your CS person you spoke with had no idea.  How very sad they added to the confusion vs answering your question.  


....... "The Ranger isn't gonna like it Yogi"......... Boo-Boo knew what he was talking about!


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Yes, I have no Bananas, only Flamethrowers.......
Message 3 of 5
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Final Value Fee on Sales Tax

Raise your prices by a couple percent and move on. Make sure you keep an eye on postage rates and raise your prices when they increase too.

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Final Value Fee on Sales Tax

I'm puzzled as to why eBay is collecting a Final Value Fee on the sales tax...

 

I cannot give tax advice, but if you use itemized deductions, make sure you find every possible qualification that applies to you.

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