mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@zamo-zuan wrote:
@mam98031 wrote:
@bar-29368 wrote:
How can sales tax be included in Gross RECEIPTS if the seller never actually received it?The IRS defines "Gross receipts" as "The total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses."
https://smallbusiness.chron.com/gross-sales-vs-gross-receipts-25086.html
It's a bit blurry because eBay and the seller are both separate organizations. But wouldn't the part pasted only apply to eBay, and not the actual seller? Since the seller had not received the sales tax portion.
What? What's "blurry"? What IRS requires of MP and PP? Have you never reconciled a PP 1099K? Or does someone else in the company you work for do that? All 1099K's report Gross Receipts to IRS as I previously described.
@cynthealee2 wrote:
@mam98031 wrote:
@cynthealee2 wrote:
@bar-29368 wrote:
How can sales tax be included in Gross RECEIPTS if the seller never actually received it?I believe that was Pretty's point.... the sales stats on your seller hub include EVERYTHING... and eBay seems to be using THOSE figures to claim that overall most sellers fees will be going down.
Because they are REQUIRED by IRS rules to report it that way.
I get that...
My point is and I THINK Pretty's point was that if you use THOSE totals that are on those pie charts and not REAL numbers as you are doing eBay can then claim that most sellers fees are going down...
eBay double speak at its finest.
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All the numbers go on my excel sheet and then get handed to the H&R block lady for her to figure out figure out come tax time.
My job is to just make sure I record all the numbers in the right slots... her job is to figure out how much IRS is going to send me back 😄 (the whole living under the poverty line thing works wonders when it comes to tax time)
I have never said the fees were going down. That was a claim by Brian B., not me. He said "most" sellers would see a decrease in overall fees. I personally think it will be a FEW that will see decreases, but "most" will not. I further think for most of us we will see a rather neutral result.
But those that resist that idea will not know for sure until they do the math on a months worth of transactions or more. It's a personal choice. Some will run the numbers so they can discover the reality of the changes to their business and others won't. We each just need to do whatever is best for each of us.
@gwzcomps wrote:
The .55% savings is only accurate if the buyer isn't paying tax. It seems like the slight of hand eBay or someone started to hide what we are really paying. You didn't say those categories don't pay sales tax but you excluded it in your figures. I know it is not ill intent on your part, but it comes off as misleading when compared to the real numbers. Unless there is some miscommunication I am missing.
YES I know. I said exactly that. I don't know what you are driving at. There is no post I've made on this thread or any other that dismisses the impact that the FVF on sales tax is going to have on any seller on this site. And I NEVER excluded it in any figures. Heck I didn't even do any math in my recent posts that shows the $$ value of the fees, I only talked about the break down of the percentages.
It is sort of a slight of hand. Lower part while raising another. Yes you are correct. But it is also exactly why you need a good cross section of your sales to determine what the true impact is on your account. You can't possibly get an accurate result by only comparing a handful of sales.
I have been pretty clear and it is on the worksheet I gave you, so why you are saying this now is puzzling to me.
@zamo-zuan wrote:
@mam98031 wrote:
@zamo-zuan wrote:
@mam98031 wrote:
@bar-29368 wrote:
How can sales tax be included in Gross RECEIPTS if the seller never actually received it?The IRS defines "Gross receipts" as "The total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses."
https://smallbusiness.chron.com/gross-sales-vs-gross-receipts-25086.html
It's a bit blurry because eBay and the seller are both separate organizations. But wouldn't the part pasted only apply to eBay, and not the actual seller? Since the seller had not received the sales tax portion.
What? What's "blurry"? What IRS requires of MP and PP? Have you never reconciled a PP 1099K? Or does someone else in the company you work for do that? All 1099K's report Gross Receipts to IRS as I previously described.
Apologies for the confusion. By blurry, I meant the lines between seller's gross and eBay's gross.
As in the above post, it was mentioned "How can sales tax be included in Gross RECEIPTS if the seller never actually received it?"
The seller never actually receives the tax money. Doesn't that imply that it does not belong on their gross receipt, if they haven't received it?
Since the sales tax is included in the payment to the Seller, it is part of the seller's gross receipts. The seller DOES receive the sales tax money. Granted Ebay immediately pulls the sales tax money, but that does not change the fact that initially it comes into the seller's account, so Ebay is REQUIRED to report it.
@calibaydeals619 wrote:As a new seller (who is currently on Amazon only selling books/DVDs) I am frustrated by the new limits! Only 2 feedback for 5 orders. All items delivered. Still can't list anything new (5 allowed for the month!?). No one to talk to. I was hearing from a bunch of old timers that eBay cares and listens. Thus far, nothing but frustration. Found a bunch of neat items to sell at local garage sales here in So. Cali. Now it's just sitting collecting dust
These are completely different issues than this thread is about, but maybe I can help a little.
Feedback is a voluntary system. There is no way to force a buyer to leave FB. Besides doing that would likely backfire and the FB would hurt you far more than help you. So this is something you just need to get use to. More will come with time, but it is slow as most buyers just don't leave FB anymore. Don't make the mistake to try and email asking buyers to post FB. Let them do it on their own. Otherwise it may just have the opposite and a harmful effect you weren't bargaining for.
Every 30 days, as long as your account is in good standing with Ebay you can ask them to increase your selling limit. Continue to do that until you are very comfortably above what you think you will ever need.
Here are some ways to contact Ebay.
https://www.ebay.com/help/home
Drop to the bottom of the page and the email option is there. Or you can click on the reason for needing assistance and the options for contact will display. For some of them that could be the ability to call, leave a message for a call back, email or live chat.
https://www.ebay.com/sellerhelp
The seller’s help center give you the ability for file for certain types of assistance.
https://twitter.com/askebay?lang=en
https://www.facebook.com/eBayForBusiness/
It's important to be aware of where you post a question on Ebay’s Facebook page. A comment on one of Ebay’s marketing posts won't be answered, but comments posted directly on Ebay’s page will.
@calibaydeals619 wrote:Appreciate the follow-up but I am not new to eBay or selling. This account has been open since 2016 and I sell DVDs on Amazon. I feel like eBay has no communication nor empathy and is putting us in a rinse cycle with other newbies. We are selling books + DVDs
I only went by what you previously posted. In that post you did say you were a new seller. Selling on another site has no bearing whatsoever on your account here or your seller rights.
It does not matter how long an account has been opened. Per the rules of Ebay new sellers or sellers returning after 90+ days of not selling have certain requirements and rules to abide by. If you haven't contacted Ebay , then you haven't even given them a chance. I provided some contact info for you in my previous post. If you need the rules for new sellers, just ask. It would be good for you to know them so you have fewer surprises.
@cynthealee2 wrote:
@mam98031 wrote:
@cynthealee2 wrote:
@mam98031 wrote:
@cynthealee2 wrote:
@bar-29368 wrote:
How can sales tax be included in Gross RECEIPTS if the seller never actually received it?I believe that was Pretty's point.... the sales stats on your seller hub include EVERYTHING... and eBay seems to be using THOSE figures to claim that overall most sellers fees will be going down.
Because they are REQUIRED by IRS rules to report it that way.
I get that...
My point is and I THINK Pretty's point was that if you use THOSE totals that are on those pie charts and not REAL numbers as you are doing eBay can then claim that most sellers fees are going down...
eBay double speak at its finest.
*************************************
All the numbers go on my excel sheet and then get handed to the H&R block lady for her to figure out figure out come tax time.
My job is to just make sure I record all the numbers in the right slots... her job is to figure out how much IRS is going to send me back 😄 (the whole living under the poverty line thing works wonders when it comes to tax time)
I have never said the fees were going down. That was a claim by Brian B., not me. He said "most" sellers would see a decrease in overall fees. I personally think it will be a FEW that will see decreases, but "most" will not. I further think for most of us we will see a rather neutral result.
But those that resist that idea will not know for sure until they do the math on a months worth of transactions or more. It's a personal choice. Some will run the numbers so they can discover the reality of the changes to their business and others won't. We each just need to do whatever is best for each of us.
Whoa.... I never said YOU said they were going down... reread what I said...
My point is and I THINK Pretty's point was that if you use THOSE totals that are on those pie charts and not REAL numbers as you are doing eBay can then claim that most sellers fees are going down...
eBay is using one set of numbers and claiming fees will go down... YOU use REAL numbers and know the numbers aren't going down.
It is likely that Ebay is going further than anything we have discussed on the threads much. There are three areas in which sellers WILL SAVE MONEY.
1. On cancellation. MP refunds all processing fees because they are going to the Simplified fees. They only keep the 30 cents.
2. On Refunds. MP refunds all processing fees because they are going to the Simplified fees. They only keep the 30 cents.
3. And for those sellers that have listings that qualify for TRS+, the discount is calculated on the amount collected for the Simplified Fee, which means that those sellers will get the discount on FVFs on Shipping that we never were allowed before. On the FVF on sales tax, which was never something we had before as a charge in the first place. And finally on the money processing fee because all of these things make up the Simplified fee. These factors will slightly increase the discount from TRS+ listings.
These things we haven't even really covered on the threads that I've been on. We touch on the from time to time, but no real discussion of them as I remember it but likely is something Ebay considers in the Pie chart you referenced.
