Sales Tax

[cruz66]

I live and sell in Oregon. I am not a very active seller but I do have a few items. I just sold something for $500 and $20 for postage. I sent the item priority with signature required and insurance hence the $20 postage. My EBay fee was assessed on a $558 sale because based on postage and sales tax. Oregon does not have sales tax. Why is the fee assessed on a much higher sale amount with sales tax?

[7606dennis]

Sales tax would be levied on the buyer based on the state that they were having the item delivered in.  Where you live and sell is irrelevant since sales tax is levied by the buyers state.  That state may also deem the S&H taxable as well.

[dryophelia · Accepted solution]

@cruz66 

Buyers pay sales tax based on where the item is shipped to. 

Sellers pay fees based on the entire payment. Selling price, shipping costs, sales tax plus 30 cents. 

[reallynicestamps]

The Internet (state) sales tax is run through your invoice to the customer and she pays the full amount. The eBay (and formerly the Paypal ) fee is paid on the total amount of the payment. The amount is not broken down.

This is Standard Practice.  If you ask at a local Idaho* family run business, they will tell you they pay the credit card company for the whole payment on a sale by card.
Which is one good reason to use cash for in-person transactions. Those cc fees are a killer for small businesses.

*Idaho has sales tax right?