mam98031 • Volunteer Community Member • Buyer/Seller since 1999
PP is processing payments and processing the fees on the payments received as they ALWAYS have. They are in the business of payment processing and they charge their fees based on the total amount received. And they have always done that. Even back in the days, not so long ago, that sellers collected and remitted their own sales taxes due. PP has always charged their processing fees on sales tax that was part of the payments received.
On a $5.00 sale with a 9% sales tax rate, the fees are as follows.
5.00
.45 Sales tax
5.45 Sub total
-.50 10% approximate FVF on the sale.
-.30 PP Transaction Fee
-.16 PP Processing fee @ 2.9%
-.45 Sent back to Ebay to process sales tax payment to the appropriate state
4.04 Gross to seller after fees
Ebay's does NOT charge a FVF on sales tax.
Yes PP does take the sales tax away from the money received, but sales tax amounts have never BELONGED to the seller, it has always belonged to the appropriate state, even when you use to charge it for your own sales. The money wasn't yours to begin with. You were just collecting it for your state to remit at a later date.
@bonjourami wrote:Would all these complaining sellers rather be collecting those taxes from forty one states, and all the work that entails? Not me! Im happy to pay a small fee to PP for processing those taxes.
It's likely that most of us on the threads wouldn't be selling over the thresholds of these states so that we would have to charge and remit sales tax.
But I'm still with you. I just don't see it as an enormous expense and/or issue. Besides it is short term anyway. Once we are all in Managed Payments this issue will go away. Others may come, but this one will be gone.
@basketsbythebeach wrote:
How can increasing prices sell more things? I almost reduce a bit to offset the taxes if applicable to draw ppl to buy from me!
Does PayPal charge sellers' fees on included tax or before taxes. Lawful?
PP is a for profit corporation. The service they offer is money processing. They charge a fee for money processing, which is the service they offer. They have every right to be paid for services rendered. And yes they charge their processing fee on the total amount received just as they ALWAYS have. And yes that is lawful to be paid for legal services rendered.
When you use to charge your buyer sales tax for anything you shipped within your own state, PP charged you their fees on the total amount processed. And they are doing the same thing today. The only difference is the sales tax money is then sent to Ebay for processing and remittance to the appropriate state.
