Sales Tax SCAM!

[tottie7777]

What a scam!

Not only is it spurious that Ebay collects sales tax - but it does so in a manner to enrich its' sister Paypal.

The sales tax is collected from the buyer.

Ebay sends that sales tax to the seller at paypal.

PAYPAL DEDUCTS A FEE ON THAT SALES TAX along as a sales total!!!!

Ebay gets the sales tax back to pay the states IF it wants and if anything is due (which is another question/scam).

PAYPAL KEEPS THE FEE ON THE SALES TAX!

YOU PAY FEES FOR EBAY TO COLLECT SALES TAX!!

So one has to calculate the sales tax, add an amount onto shipping or the goods to TRY and cover the ever increasing fee for those sales taxes.

Ebay shoud/could just keep the sales tax and pay it out direct to states. Adding the amount to the sale and allowing its partner Paypal to collect on that amount too is a pure scam. Something has to be done. Class action?

[mrdutch1001]

AMEN to that!!

at some point perhaps OP will learn to read and accept what is and stop looking for additional fallacies to argue.

[wint_5631]

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@tottie7777 wrote:

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@the*dog*ate*my*tablecloth wrote:

They might be thinking of when sellers collect and remit sales tax sometime later. However EBay is responsible in MF states so a seller’s tax collection process is totally irrelevent

Furthermore as the poster asks, why would the seller get to keep the float when eBay owes the sales tax? I don’t get how that would even make sense?

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They collected from a sale to Nebraska, not an MF state.

Once again, if the buyer pays the sales tax, ebay is bound by LAW to collect, why does it travel this convoluted path to skim off the seller THROUGH Paypal?

AND WHY ONLY PAYPAL??? What happened to being able to ask for checks, cod, cash pickup? Everything has a reason.

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Because **bleep** sellers would cash checks and never ship, send junk COD and FYI local pickup is still allowed. 

Please stop with your attempts at throwing shade on eBay and PayPal. You look foolish.

[mansons2005]

I find it difficult to believe that this is an ongoing conversation.....the facts have been presented, with valid references and clear explanations of misunderstood concepts and practices. The countered arguments are all contrary to the facts, but it appears that they are not being accepted. I would have dropped out of this quagmire long ago, instead of wasting all of those keystrokes!!!!

[mam98031]

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@tottie7777 wrote:

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@the*dog*ate*my*tablecloth wrote:

They might be thinking of when sellers collect and remit sales tax sometime later. However EBay is responsible in MF states so a seller’s tax collection process is totally irrelevent

Furthermore as the poster asks, why would the seller get to keep the float when eBay owes the sales tax? I don’t get how that would even make sense?

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They collected from a sale to Nebraska, not an MF state.

Once again, if the buyer pays the sales tax, ebay is bound by LAW to collect, why does it travel this convoluted path to skim off the seller THROUGH Paypal?

AND WHY ONLY PAYPAL??? What happened to being able to ask for checks, cod, cash pickup? Everything has a reason.

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I provided a link for you earlier that outlines the Ebay policy on Sales Tax and it has a list of the states that have MFLs along with the date it became effective.  You may want to actually look at that link as it will tell you that Nebraska does have an MFL as of May 1, 2019.

[chapeau-noir]

Oh, gawd - I'm getting one of those headaches that starts behind the eyes. 🤕

[wint_5631]

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@bonjourami wrote:

Never saw such complete confusion ignorance over and over again with one poster.

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Ftfy

[wint_5631]

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@tottie7777 wrote:

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@mam98031 wrote:

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@tottie7777 wrote:
"I want to know why we are paying final value fees on the tax collected. "

EXACTLY!

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@tottie7777 

@vixtr1 

This is another bad piece of information.  Ebay does NOT charge a FVF on sales tax.  It may be helpful if you review your Ebay invoice before making such statements.  You will not find a FVF on the sales tax portion.

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Which means Paypal is collecting the tax. You cant have it both ways. And that is what I am talking about. That amount should be in the account until it is due. What business pays taxes the day of sale?

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@tottie7777 wrote:

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@mam98031 wrote:

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@tottie7777 wrote:
"I want to know why we are paying final value fees on the tax collected. "

EXACTLY!

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@tottie7777 

@vixtr1 

This is another bad piece of information.  Ebay does NOT charge a FVF on sales tax.  It may be helpful if you review your Ebay invoice before making such statements.  You will not find a FVF on the sales tax portion.

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Which means Paypal is collecting the tax. You cant have it both ways. And that is what I am talking about. That amount should be in the account until it is due. What business pays taxes the day of sale?

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so it boils down to you want to keep the tax money and use it till it's due? Either that or you're being deliberately obstinate...

[bonjourami]

I think obtuse is the word.

[jopirel_inc]

Correct, Business 101 Dynamics

[jopirel_inc]

Really.

Then,

Here is the breakdown on how BOA, who is so integrated with VISA that arguing they are not the same is like telling me my brother is not related as we force users to use each other.

Here is the breakdown on how Citibank, who is so integrated with Mastercardl that arguing they are not the same is like telling me my brother is not related as we force users to use each other.

Capitalism should be taught in 1st grade.

[the*dog*ate*my*tablecloth]

Ebay doesn't force people to use Paypal, sellers are free to move to Managed Payments and use Adyen instead.

Paypal certainly does not force anyone to use Ebay. In fact Paypal wanting to branch out was a primary reason for the split. I use Paypal far more on other sites than I do on Ebay right now.

Neither forces buyers to buy.

People should be taught accounting, finance and general economics. Capitalism would be far down on the list of new things to teach young people. Even cooking and sewing would be more useful than just teaching capitalism.

[nadiadragon · Accepted solution]

I think everybody is missing the POINT being made here
Here is the math
You sell something for 100 bucks
IL has almost 10% sales tax - so ebay charges your buyer 110 for total transaction (i am not adding shipping - assume free shipping)
So, before - PP would charge you -the Seller - 3% or $3 - so you get net 100-3 =97 in your PP trans
NOW,
PP charges you 110 *3% = 3.30 - 30 cents more - you get in your pocket 110-10 -3.30 = 96.70 - so you are paying trans fee on $10 tax that is not in your pocket, but gets remitted to buyers state. So why is seller carrying a cost of sales tax processing? Not PP, Not Ebay, not the states - BUT you the silly poor seller - paying shipping fees, ebay fees, pp fees, and now sales tax fees?
This is the point the poster is trying to make. Go on - see your pp trans math - am i wrong?

[nadiadragon]

You are missing the point again
You already pay PP fees for trans processing, why should you pay more fees on sales tax?
PP should calculate the PP fee on the trans amount before tax - not add trans amount and sales tax and charge you seller MORE because of the sales tax amount
This has NOTHING to do with economics or finance but simple MATH

[mrdutch1001]

correction: NOT ALL "sellers are free to move to Managed Payments and use Adyen instead."

Only a small percentage of eBay sellers are currently able to sign up for Managed Payments...

[the*dog*ate*my*tablecloth]

That comment about teaching was directly in response to the poster who said we should teach people capitalism. Did you read the thread? It was obviously a response to someone else.

im totally NOT missing the point on this tax thing. I have been here explaining these new sales taxes everyday since last January. The point is that people can wail all they want. eBay and PayPal will do what they want. 

I have also been on record many times saying eBay should be paying the fees on money they are responsible for.

So please don’t tell me I’m missing the point.