Sales tax collection

[stm-embroidery]

Prior to now, any out of state sales that required sales tax collection were done by eBay. 

My most recent sales were billed via my PayPal account and then the tax was deducted to eBay.  I called CS and was informed that this is an "improvement" as it reduces the number of invoices to the buyer.   

This costs me more in PayPal fees as they're based on the total transaction.  Additionally, I'm wondering  how one would document this for reporting/tax purposes.  The total on on receipt issued to the buyer will now differ from actual amount collected.  

This is very new but I'm hoping some folks are looking at this and are sharper than yours truly.  Feels a bit like SOME GENIUS came up with a way to shirk their obligations by screwing the sellers.  

[mam98031]

@anjie234 

Oh, I don't know that 'ebay didn't consider it'!!!

I'm pretty sure they did!

So you are complaining about something you never even took the time to find out if it was true???!!  

eBay is able to make a great deal of money in the collection and temporary holding of all those sales tax dollars.    (they are NOT doing that to "help" us!  That's just silly!)
THEN add on to that the fees collected from everyone on that money (FVF and Paypal)!
{{ That's some special kinda **bleep**! }}

As I previously explained, Ebay does NOT collect a FVF on sales tax.  Just look at your invoice from Ebay before you make such statements that are simply NOT true.

PayPal is a SEPARATE company and NOT part of Ebay.

I have no idea why you think Ebay should provide ANY services and not get paid for them or why you think it is "silly" for them to make money.  Exactly how are they suppose to operate a site this size without money to pay its employees?  

[mam98031]

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@anjie234 wrote:
I'm tellin' ya... eBay is MAKING $ ON THIS GIG! Lots of it!

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Fine, I take NO ISSUE with that.  They are paying their employees to program, process and pay these taxes to the appropriate states.  Ebay is doing the work, so they SHOULD BE getting some money out of this.  I have no idea why some have the mindset that Ebay has no right to make money.  To me it makes no sense.  

Let them make money on it.  I'm sure glad I don't have to do it for myself.  I can assure you no one would be paying me to process taxes I owe.  So Ebay taking this over is fine with me.  Saves me nothing but time and money.   I can live with that.

[the*dog*ate*my*tablecloth]

It also saves effort by buyers who were previously responsible to track and remit those Use Tax dollars on their State tax returns.

[femmefan1946]

I understand that on eBay's newish Managed Payments they are not charging the seller a fee on sales taxes.

My tinfoil hat is that the current method of putting sales tax on the PP invoice has  advantages for eBay.

It simplifies payment for the buyer. Which is a Good Thing all round.

It reduces eBay's costs for collecting and remitting sales taxes.  Which is a Good Thing for eBay.

It encourages sellers to opt into Managed Payments to avoid those PP fees. Which is a Good Thing for eBay.

Before you rush off to sign up for MP, keep in mind that while PP charges their 30c fee on each transaction, no matter how many items were sold in the transaction, MP charges 29c on each sale within the transaction.

So if you are make a sale of 10 items at $10 each, PP will charge you 30c + 2.9% of $100 = $3.20

While MP will charge you 10x.29x= 2.90 +(2.9% x $100= )$2.90 =$5.80 for the same transaction.

I am willing to have my arithmetic corrected.

[mobley120]

"Feels a bit like SOME GENIUS came up with a way to shirk their obligations by screwing the sellers."

That's probably a big part of it.

I read all of the responses to your post and I stand more confused : (

This is what I do know, as it was told to me o'er the phone by an eBay rep.

EBay does what is best for eBay; not the users.

I also see the words "class action lawsuit" in a couple of posts.

This is something to keep in mind, eBay has a provision in their user's agreement that prevents any such action as a class action lawsuit. And, eBay also has a provision in their users agreement that dictates how the proceeding of arbitration will be set forth in a user's disagreement with eBay. Or at least that is how it appears to me to be written therein eBay user's agreement, and it also appears to me that a user of eBay can not be represented by a lawyer in a disagreement with eBay, even if they wish to have a lawyer, but maybe I am reading it incorrectly, but if I am not, what would it mean if the user is a lawyer? : 0

Ah, maybe I am just reading it incorrectly?             

[the*dog*ate*my*tablecloth]

MP is controlled by eBay so they can syphon off the tax before it transfers to the seller. Just like it used to be in Paypal before the November change. Nothing nefarious about it.

i don’t use MP but I thought it was 25 cents per item, not 30?

[the*dog*ate*my*tablecloth]

If you read the MF laws most, maybe all, say the MF is collecting on behalf of the seller. So it makes it hard to prove that charging the seller the fee is illegal. Even if you could do a class action lawsuit who would you sue? PayPal is processing the total amount so there’s no case there.

i don’t like it but I don’t see how it could be illegal.

[anjie234]

Your response is invalid!!!!!
1. I'm not "complaining"; HOW could I possibly know? (My ACTUAL STATEMENT: "I don't know...."
So... DUH!

2. Paypal is a separate company, yes. OWNED BY EBAY!
So... knock it off with the **bleep**!

3. I did NOT say that it's "silly for ebay to make money". I SPECIFICALLY SAID: ebay is not just doing it merely to "help us out"!!
So... again, duh!


Write something USEFUL

[the*dog*ate*my*tablecloth]

eBay has not owned PayPal since 2015

[mam98031]

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@anjie234 wrote:
Your response is invalid!!!!!
1. I'm not "complaining"; HOW could I possibly know? (My ACTUAL STATEMENT: "I don't know...."
So... DUH!

2. Paypal is a separate company, yes. OWNED BY EBAY!
So... knock it off with the **bleep**!

3. I did NOT say that it's "silly for ebay to make money". I SPECIFICALLY SAID: ebay is not just doing it merely to "help us out"!!
So... again, duh!


Write something USEFUL

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1.  If you had viewed your Ebay invoice Before posting your comments, you would have seen that Ebay doesn't do what you are accusing them of doing which is charge FVFs on sales tax.  Ebay does not do that and you can prove that for yourself by reviewing your own Ebay seller invoice.

2.  Ebay has not owned PP since 2015.  Whether or not you choose to accept that is up to you.  But the fact is that the two companies separated in 2015 and Ebay is NOT the owner of PP.

https://www.ebayinc.com/stories/news/ebay-paypal-become-independent-companies-2015/

3.  If you look back at what I said in the post I was responding to, I only had the work SILLY in quotes which is a word you used in your post I was responding to.  The rest of the words were mine.  

@anjie234 

[anjie234]

Well of course eBay should make money on services provided.
You are TOTALLY NOT GETTING the "big picture".

"Ignorance is preferable to error; and he is less remote from the truth who believes nothing,
than he who believes what is wrong." -- Thomas Jefferson

[mam98031]

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@anjie234 wrote:
Well of course eBay should make money on services provided.
You are TOTALLY NOT GETTING the "big picture".

"Ignorance is preferable to error; and he is less remote from the truth who believes nothing,
than he who believes what is wrong." -- Thomas Jefferson

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There is absolutely no need to get rude because you don't or we don't agree.  Having different points of view are absolutely fine.  

[anjie234]

WOW you're fast!
I suppose I stand corrected on the FVF issue (although I haven't actually checked yet, but you seem very sure)... therefore, I apologize. And will be more careful when responding in the future.
Additionally, I believe you could be a little less harsh & defensive. Nonetheless, your time and willingness to share your knowledge is appreciated. Thank-you. Anjela

[anjie234]

You're right. I agree.
Please accept my apology. Anjela

[mam98031]

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@anjie234 wrote:
You're right. I agree.
Please accept my apology. Anjela

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Not a problem at all.  I'm glad I was able to assist you with at least a little better understanding of what was transpiring on Ebay so that you don't have to feel upset at Ebay for doing something that come to find out they weren't doing.  It is always good for all of us to remove something from that worry / concern list we mentally keep.

I hope you have a wonderful year selling on Ebay.