High tax on invoice for combined shipping

[japanesque_shop]

I am a seller located in Japan, and would like to raise an invoice for three items for which I received a request for the total cost from a US buyer (but located in a US Air Force Base in Japan).

The amount for the items is $24.43 ($6.66, $6.66, & $11.11) , and the combined shipping charge is $7.99, so the total amount should be $32.42.

But when I try to create an invoice for them, the "Sales tax" of $36.66 is added, and cannot be deleted.

The invoice also shows in the Sales tax: column "Texas" and "8.25%"

The 8.25% tax for $32.42 should be about $2.7, but the invoice says $36.66 (with Estimated total $69.08).

The original shipping charges of these items were $120 to $150 each based on the usage of FedEx service, but for this buyer, I would like to charge $7.99 only as I can use Japanese domestic service.

It seems the tax is calculated based on the old shipping charges. $36.66 is displayed even if I enter "0.00" in Shipping and handling.

The shipping address on the invoice is Houston, Texas, but the buyer has asked me to send the items to an Air Force Base in Japan in his message.

I have already sent a message to ebay Customer Service for a help, but wondering if I could get an answer faster from this community.

[femmefan1946]

The sales tax is from Texas and you do not pay it, your customer does.

The original shipping charges of these items were $120 to $150 each based on the usage of FedEx service, but for this buyer, I would like to charge $7.99 only as I can use Japanese domestic service.

Ummm.

I think the sales tax is being calculated (at 8.25%) on the original shipping cost.

However, unless you are willing to lose a LOT of money, the domestic shipping fee will probably not cover even the postal cost of shipping internationally.

I'm in Canada and I can ship 500 grams domestically for $5.47 and internationally for $22.28. 

You will be losing the difference -- and your profit.

Unless your customer has a Japanese address?

[japanesque_shop]

Thank you for your reply, and yes, the customer has a Japanese address. It s a US base inside Japan. Japan Post has confirmed that I can send items to this address for about $7.

The point is that the tax calculation on the invoice. I'm wondering why the tax is calculated based on the original shipping cost even I enter the reduced shipping charge.

The customer will not pay the tax of $36.66. I cannot send an invoice for him.

I'm at a loss.

[slippinjimmy · Accepted solution]

Can you preview the invoice?

Generally speaking if you change the amounts on the invoice the tax is not changed until after you preview or send.

If all else fails tick the box to receive a copy, send it, check what gets sent and contact the buyer right away if it is still messed up.

[japanesque_shop]

Thank you very much for your advice. I have already previewed the invoice, but the tax is still $36.66 even in the Preview invoice.

Do you think the tax may be corrected if I send the invoice to the buyer?

What will happen if the buyer receives the invoice with the incorrect tax? Can the buyer disregard it?

[alcoforever]

I suspect the solution would be to cancel the order, relist the items as a single lot for your buyer to repurchase.  The buyer has a chance to change the shipping address before he pays.   This he should do, changing it to the local Japanese address.   Then he can get the items without the sales tax or high shipping charges.

[japanesque_shop]

Thank you for your advice. I'm considering doing so if I cannot receive a response from Customer Service today.

[quiltgeek]

You can NOT change the shipping address from what you recieved with the payment. That is why eBay is going to charge your buyer for the Texas sales tax on both the item price and the shipping to Texas.

It only way to correct the shipping address is to cancel the purchases and set up a single auction listing with a Best Offer choice for all the items. When the listing has posted, giving them the title and listing #, inform the buyer and have them make an offer  for the combined prices that you can accept. That ends the listing and gives the buyer the opportunity to edit the shipping address in the Checkout page so you get the shipping right and the buyer doesn't have to pay the Texas sales tax that they don't owe.

It is your buyer's responsibility to set up their correct shipping address when they paid for the item. 

[japanesque_shop]

Thank you for your advice, but the point is why the tax is calculated based on the original shipping.  There will be cases where I want to combine shipping for two or more items that can be shipped to the same location to US. If the reduced shipping is not reflected in the tax, the system does not work.

[alcoforever]

The tax is calculated on the original shipping because the original shipping address is in Texas.   Once the buyer repurchases with the correct Japan address the tax will no longer be there.

[go-bad-chicken]

DO THIS!^^^^^^^^^^^^^^^^^^^^^^^^^^

[japanesque_shop]

Last evening, I had another opportunity to create an invoice for combined shipping for a buyer located in Colorado, USA. The tax was calculated based on the original shipping (before being combined), and a higher tax amount was in the preview invoice also. However, in the invoice the buyer received, the tax calculation was correct, and a correct tax was paid by the buyer.

It seems that the tax is recalculated when an invoices is being sent to the buyer.

So, I think your answer was the best. Thank you very much for your help.