Selling Fees on States Collected

[philaqtrmasdepot]

Has anyone else noticed this problem? I just noticed that when we sell an item on eBay that they are charging us for:

1. Selling the item

2. Postage

3. AND STATE FEES THAT EBAY COLLECTS FOR THE VARIOUS STATES

This doesn't seem right. I did not make money on the state fees that eBay collects for the respective states!!!

Here is an example of something I just sold:

Item Selling price: $28.99

Shipping: $13.15

State fees collected by eBay: $2.95

Total: $45.09

$45.09 x 12% fees=$5.41

I feel they should only charge for the item sold and shipping. Total: $42.14 x 12%=$5.06

Any thoughts?

[inhawaii]

No kidding?  They are charging us a fee on the sales tax?  Is that even legal?

[philaqtrmasdepot]

Thats what I want to know. Look at the fee breakdown on the item you have sold. I do not think this is right.

[wastingtime101]

This has been in effect for two years. Build it into your business expenses and item pricing like everything else. Every venue I sell on has a different fee structure which is why I charge different rates across different platforms for the same item.

[treasures_from_tess]

ebay is taking the responsibility of collecting the tax and remitting it to the buyer's state.  It would be a nightmare for me to have to do this myself, so I don't mind them charging their fee on the sales tax they collect and remit for me.

[rosszonebricks]

Inhawaii was being sarcastic.  There are only 10,000 other posts on this same subject.

Should you have known about fees *before* you listed? yes.

[philaqtrmasdepot]

I know about their fees. I have been selling on eBay for 24 years. I don't see how they should be allowed to charge us on tax collected especially since we do not make money on the tax that is  collected. 

[monica-sells]

There are dozens of threads on this....in this thread I can say

You have obviously been a successful/active seller

Fees have been collected on the total sale for awhile.....prior to Managed Payments, Paypal charged for the whole sale too. The difference being about the percentage (2.9 vs. 12.9)

I am pretty sure you would not want to be burderened with remitting state sales tax to over 11,000 jurisdictions in the U.S. and however many different VAT collections you would have to do, so...

many sellers think this is a small price to pay to not have to deal with it...(myself included)

That is NOT why the FVF is charged on the full amount, but it is why I don't complain about it.....

[soh.maryl]

Ever since this fee change was implemented, there have been hundreds, maybe thousands, of sellers who have come here and stated that this cannot possibly be legal.  Don't you imagine that a company as large as eBay would have an attorney (or two hundred) who has determined that yes, this is indeed legal?  

[stuff4divas]

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@philaqtrmasdepot wrote:

Has anyone else noticed this problem? I just noticed that when we sell an item on eBay that they are charging us for:

1. Selling the item

2. Postage

3. AND STATE FEES THAT EBAY COLLECTS FOR THE VARIOUS STATES

This doesn't seem right. I did not make money on the state fees that eBay collects for the respective states!!!

Here is an example of something I just sold:

Item Selling price: $28.99

Shipping: $13.15

State fees collected by eBay: $2.95

Total: $45.09

$45.09 x 12% fees=$5.41

I feel they should only charge for the item sold and shipping. Total: $42.14 x 12%=$5.06

Any thoughts?

---

my orders don't say "state fees collected by eBay", they say "sales tax ebay collected"

my buyers have not been charged a 'state fee'

[philaqtrmasdepot]

I had to state it that way because eBay would not let me post using the word "TAX"

[dbfolks166mt]

No kidding?  They are charging us a fee on the sales tax?  Is that even legal?

Always poking the fire. 😄

[varebelrose]

Surely you were aware that Paypal was charging their fees on the gross total (including state sales tax) as well?

[dbfolks166mt · Accepted solution]

     There is a posting like this multiple times per week. EBay charges the FVF on the sales tax in the same manner that every CC company charges their fees on the total sale, which includes tax, anytime or anywhere you use the card. There is a reason some businesses will offer a discount for cash payments. I have a number of gas stations in my area that do so. 

     EBay is also paying the CC fees on the sales tax, since they are the merchant of record, for every sale on eBay that is paid for with a CC just as PayPal did before eBay moved to MP. 

[dnasilver]

Could you have submitted the correct paperwork and check to the taxing authority within their timeframe for 35 cents?