Still no resolution for sales tax fees?

[awd_bliss]

Saw a bunch of old threads of people complaining they are being charged 14% on TAX of transaction. Which is beyond ridiculous. That was a year ago...how has this not been fixed yet? This is hundreds of dollars of theft on expensive items. Beyound **bleep**! 

Especially absurd since sales tax goes by buyer state, if my state is 6% and say NY is 10% i am still paying 14% fees on total tax which isnt even MY STATE TAX RATE!!! 

[monica-sells]

what is there to fix?

the terms of sale are clear...item + shipping + sales tax = total sale

category final value fee determined by total sale amount...

can't be much clearer than that

[soh.maryl]

For several years now, eBay has been required by law to collect state sales tax on purchases delivered to buyers whose delivery addresses are in about 46 states.  And within those states, there can be multiple state sales tax rates.   It obviously costs some money to do this, making sure the percentage is correct and remitting to the appropriate governmental entity.   Really don't anticipate that eBay will "fix" this as there is really nothing to fix.

Yes, the FVF is calculated on the buyer's total payment which would be the item cost, the shipping fee and the state sales tax, if applicable.  And, yes, if you're a seller, your buyer is paying you the state sales tax based on their delivery address.  And, yes, your FVF will be calculated on the funds received as mentioned earlier.  Your state address, as the seller, has no input into the calculation of the FVF.  

[inhawaii]

After lots and lots and lots of discussion, I believe there is a resolution.

Accept it and sell here.

Don't accept it and don't  sell here.

[soh.maryl]

Ingenius, if somewhat elementary! 

[1tuna]

there is not really much to discuss. this is the way its done, its a done deal

more for ebay and less for us.

I dont think anyone at ebay is even thinking of changing it, its not even on the back burner

@awd_bliss 

[maxine*j]

There is nothing to resolve or to fix.  eBay applies its FVF to the total the buyer pays for the merchandise, handling, shipping, and sales tax.  eBay has a perfect right to do that.  eBay discloses the fact that it does so.  If you sell on eBay, you pay eBay its fees.  If you find the fees onerous, you do not sell here.  (Be advised, though, that you will pay similar fees on all other on-line marketplaces.)

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[awd_bliss]

Its funny how they don't show you the fees include tax, you have to click the little drop down menu. I will sure take my business elsewhere thanks for valuable response. 

You are absolutely right i will in fact rather not sell here. Deceptive practices like this really do the job guiding people away.  Hmmmmmmm how can we make more money without raising fees.......oh right lets tax them on money they did not actually make.

[rosszonebricks]

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@awd_bliss wrote:

. That was a year ago...how has this not been fixed yet? 

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That is a LOT of states that would need to vote in favor of repealing the laws that made collecting sales tax on internet sales a requirement.

As far as 'payment processors charging the stated fee on the entire transaction' ... When did that start?  1940?

[monroe67]

Title:  "Still no resolution for sales tax fees?"  

Not that it was ever a problem that n-e-e-e-d-ed  a resolution . . . 

Buyers paying sales taxes on money to buy anything online is a fact of life in the United States.
Same as when any buyer buys a taxable item inside a local store, like a 7-11 or Walmart.

eBay is required to calculate and collect those sales taxes, and that is also a fact of life for buyers and sellers on eBay.   It is the result of the Supreme Court decision of South Dakota v Wayfair, from June of 2018.  

"Especially absurd since sales tax goes by buyer state, if my state is 6% and say NY is 10% i am still paying 14% fees on total tax which isnt even MY STATE TAX RATE!!! "

Trying to find and state a rational connection between the buyer's state sales tax percentage, the seller's state sales tax percentage, and eBay's Final Value Fee percentages -- if not absurd, that at least seems to show a deep misunderstanding of how sales taxes work.   

[buyselljack2016]

last I knew it stated very clearly what the "fees" would be based upon right there in the area where we click 
"List".

Many sellers figure in the "costs of selling" when listing their items.

Fees are not "tax" 🙂

[dbfolks166mt]

Saw a bunch of old threads of people complaining they are being charged 14% on TAX of transaction. Which is beyond ridiculous. That was a year ago...how has this not been fixed yet? This is hundreds of dollars of theft on expensive items. Beyound **bleep**!  First there is nothing to fix as others stated. Secondly it is NOT theft. 

Especially absurd since sales tax goes by buyer state, if my state is 6% and say NY is 10% i am still paying 14% fees on total tax which isnt even MY STATE TAX RATE!!! It goes by MORE than just state and so my canned response to all of these postings follows. 

    I have always considered the eBay FVF's on sales tax to be the best accounting bargain around. If you sell a $100 item to a buyer in a state with 8% sales tax the FVF on the $8.00 in sales tax amounts to 13.25% * $8.00 or $1.08 if you are promoting at 2% that adds another $.16 so the total FVF on the sales tax is $1.24. 

     For that $1.24 eBay keeps track of the 10,000 various state, county, city, parish, municipality..... sales tax rates and laws and applies and collects the proper sales tax from the buyer. They then remit those collected funds to the 45 states with sales tax laws on whatever periodic basis is required. There is NO WAY I want to take on that burden as a seller for $1.24 out of a $100 sale. "

[ms.rodriguez*]

Get used to it. When you use your credit card at Macy's , poor Macys has to pay the credit card company a fee for the cost of the item and the sales tax that you pay.  Get used to it.  Start your items higher.  Do what Macy's does to cover their fees, they price their items higher.  Yes, I know that credit card companies charge less than 13.25% fees to the dept. stores.  Anyway, Ebay has to forward that tax to each county in each of the 50 states.  That is alot of work. They actually earn that fee.

[soh.maryl]

It's fairly doubtful that you will find any sellers here who are tickled pink about the fees but they recognize that their choices are to work within the program or to sell elsewhere.

Regarding your statement about the fees not being shown, however, it seems like lots of people can find them without much trouble.

Well, best of luck wherever you decide to sell.

[soh.maryl]

"Anyway, eBay has to forward that tax to each county in each of the 50 states."

Actually, there are municipalities WITHIN each county that may have an additional city sales tax.  And, to be accurate, not every state has a state sales tax, so it's not quite 50 states.