Partner fee?

[fattba2009]

I just sold an item and when I noticed they paid more than the price I checked PayPal and it said that they paid an extra $7 for a partner fee?! What is that?

[slippinjimmy]

It's Sales Tax collected by eBay as a Marketplace Facilitator.

[fattba2009]

I've never seen this before and I just sold something else this morning. I live in Rhode Island and this item was sold to someone in California. Is this a tax that I report to my state? I'm sorry for all the questions but I wasn't aware that I has to collect sales tax. I've never had to before.

[corvettestainless]

The seller was charged tax by Ebay, it went in your PP account and then Ebay removed it. This will happen for any item you sell to 34 states as of this writing, where buyers have to pay sales tax.

You don't have to do anything except put the amount of tax that went into your paypal account, in your books for a tax write off, since ebay took it back out, but it will count in your gross receipts. 

[slippinjimmy]

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@corvettestainless wrote:

The seller was charged tax by Ebay, it went in your PP account and then Ebay removed it. This will happen for any item you sell to 34 states as of this writing, where buyers have to pay sales tax.

You don't have to do anything except put the amount of tax that went into your paypal account, in your books for a tax write off, since ebay took it back out, but it will count in your gross receipts. 

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No wonder people are confused! It's the BUYER who is charged and pays the Sales Tax.

[clemowbooks]

Paypal is charging sellers their normal fees (2.9%-3.7%) on the tax that passes through the seller's PP account.

So if you sold a $100 item to a state with a 5% sales tax, the $5 tax would cost you, the seller, 14.5 cents in PP fees if you are in the USA or 18.5 cents if you are a non-US seller.

Which is the real problem.

[loveyourimagination49]

I thought international was 4.4%?

[mam98031]

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@fattba2009 wrote:

I've never seen this before and I just sold something else this morning. I live in Rhode Island and this item was sold to someone in California. Is this a tax that I report to my state? I'm sorry for all the questions but I wasn't aware that I has to collect sales tax. I've never had to before.

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I think it would serve you well to read through this link.  It is very important that you understand this.  FYI Ebay has been collecting sales tax on some states since January 2019 and as the year progressed, more and more states came on line.  But this link will provide you with an enlightening read.  Time well spent.

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

@fattba2009 

[johnrj1226]

MAYBE this is what it is all about .  Just a SWAG on my part - see I've  been to 3 county  fairs & a goat roping contest and I ain't  heard  of a "Partner Fee" yet.  But I'm still  learnin'.

https://www.ebay.com/help/selling/selling/ebay-partner-network?id=4662&st=12&pos=1&query=eBay%20Part...

[clemowbooks]

Sorry.

US sellers pay 2.9% on domestic sales and 4.4% on foreign sales.

Canadian sellers pay 2.9% on domestic sales and 3.7% on foreign sales (most of which are to the USA).

I'm not sure if all non-US sellers pay the same fees. @madison  ?

[impalajohnny]

If you understand graft in general you can deal with it philosophically and not waste time trying to understand every instance of it.

[mam98031]

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@impalajohnny wrote:

If you understand graft in general you can deal with it philosophically and not waste time trying to understand every instance of it.

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What?

[dasarock]

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@mam98031 wrote:

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@impalajohnny wrote:

If you understand graft in general you can deal with it philosophically and not waste time trying to understand every instance of it.

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What?

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this is part of a response I just posted on another thread ...

"

yes it is unfair.  but then again, you are talking about ebay.  I also read on one of the threads here about 'partnership fees'.  not sure why ebay would charge the seller a partnership fee for something that ebay itself is partnering with non-sellers to get them to add additional promotional advertising (with recompense $$) on their blogs, social media and other sites and formats?  but charging the 'partnership' fee that the pay the partner to the seller is just wrong anyway you look at it.

brian.t@ebay  … could you shed some light and valid reasons ebay would do these two things?  reasons that will hold up in light of examination and not just the typical ebay rhetoric?"

[dasarock]

to my way of thinking and logic … if ebay enters a partnership with a 3rd party not ebay nor seller … then ebay should pay the partnership fees … PERIOD

[mam98031]

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@dasarock wrote:

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@mam98031 wrote:

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@impalajohnny wrote:

If you understand graft in general you can deal with it philosophically and not waste time trying to understand every instance of it.

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What?

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this is part of a response I just posted on another thread ...

"

yes it is unfair.  but then again, you are talking about ebay.  I also read on one of the threads here about 'partnership fees'.  not sure why ebay would charge the seller a partnership fee for something that ebay itself is partnering with non-sellers to get them to add additional promotional advertising (with recompense $$) on their blogs, social media and other sites and formats?  but charging the 'partnership' fee that the pay the partner to the seller is just wrong anyway you look at it.

brian.t@ebay  … could you shed some light and valid reasons ebay would do these two things?  reasons that will hold up in light of examination and not just the typical ebay rhetoric?"

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And here is what I wrote on that other thread.

Ebay is NOT charging sellers a "partnership fee".  It is what they are calling it in PP when they deduct the sales tax from the seller and bring it back to Ebay for payment to the appropriate state.  Ebay is NOT charging any fee to sellers for the collection or processing of sales tax.

@dasarock