Local pick up and sales tax

[zoni5212012]

With a local pick up and cash payment - how does ebay get the sales tax? The buyer is expecting a better deal because it is a cash deal.....

[714ricki]

Don't do cash deals on ebay local pick ups. Keep all payments via the managed payment system to avoid any problems. The system will automatically collect the required sales tax. 

[bonjourami]

If the payment is cash on pickup, then the marketplace (eBay) is not facilitating the payment. They are not required to collect sales tax if they did not facilitate the payment as well as the transaction.

[ms.rodriguez*]

NO.   Cash is king.  Take it.  Bring a friend and meet in a very public place for safety.

You can always keep a log of your cash sales and jot down what sold and what you got for it and deduct the fees.

[pburn]

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@714ricki wrote:

Don't do cash deals on ebay local pick ups. Keep all payments via the managed payment system to avoid any problems. 

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What makes you say that? What problems are avoided by using Managed Payments, specifically?

Requiring that payments be made via Managed Payments comes with its own set of problems, including SNADs--which are virtually non-existent with local pickup transactions--and chargebacks, which, of course, wouldn't apply to cash transactions.

[tech_know_surplus]

I've never accepted cash for a local pickup, so I'm curious how Ebay get's their fees. I assume that they just subtract them from your bank account. But then, they could also subtract sales tax charges from your bank account if they wanted to. And they don't?

[stephenmorgan]

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@tech_know_surplus wrote:

I've never accepted cash for a local pickup, so I'm curious how Ebay get's their fees. I assume that they just subtract them from your bank account. But then, they could also subtract sales tax charges from your bank account if they wanted to. And they don't?

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I spoke with eBay about this once and they said they get the fees from the down payment.  I never done local pickup so I am not sure, but is the buyer and seller contact information available to each other without eBay getting their fees first?

Also according to the fee schedule fees are no longer broken down in two parts like 10% eBay fee and 2.9% money processing fee.  I asked about this also and was told it is the same fee 12.9% even if eBay does not process the money.

@zoni5212012 if you do the local cash pickup perhaps you can come back and let us know if your fees were discounted by 2.9% for the cash portion of the payment since eBay did not process the payment or if you were charged full fees?

[bonjourami]

I have done local pick ups, and was charged full fvf fees, there was no tax charged on the cash pick up, but when I had a PP payment, tax was charged. 

[stephenmorgan]

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@bonjourami wrote:

I have done local pick ups, and was charged full fvf fees, there was no tax charged on the cash pick up, but when I had a PP payment, tax was charged. 

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A few years ago eBay would bill you monthly for the 10% Seller Fees and PayPal would take their fee from payments that went thru them.  When eBay switched to Managed Payments it was advertised as 10% Seller Fees and 2.35% (now 2.9%) Managed Payment Fees.  If the money did not go thru Managed Payments, such as a Local Pick Up then Managed Payments did not process the money and was not be entitled to a Fee. 

As the Fee Structure reads now the Fee of 12.9% will be charged and it is not broken down to 10% selling Fee and 2.9% Managed Payments Fee.  The selling Fee is capped at a max for many things and then just the 2.9% is charged.

[allen1853]

Payments outside eBay's managed payments are "not permitted". You can do local pickups but the payment for an eBay sold item has to be through eBay. If your state has a sales tax, doing the sale in cash does not wave your obligation to collect and pay the tax. You can of course work around that and violate eBay requirements and violate your state's sales tax laws. If it is not important to you to continue selling on eBay, go right ahead. But when a scammer pays you with counterfeit bills or grabs the merch and runs without paying, don't go crying to eBay. 

[stephenmorgan]

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@allen1853 wrote:

Payments outside eBay's managed payments are "not permitted". You can do local pickups but the payment for an eBay sold item has to be through eBay. 

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Are you sure about no payments outside of managed payments?  There are other choices within a listing besides Managed Payments.

[stephenmorgan]

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eBay still having trouble loading pictures.  Anyway if you click on the managed Payments button there are other choices.

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