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The number one question about the new sales tax process

Why November????

 

 

I mean seriously, what site releases what appears to be a significant code change in the middle of the busiest time of the year?  eBay has had an exceedingly poor track record of late with site updates being released prematurely, so there's a potential that this could go south, quickly.

 

What's the rush?  Why can't this be released after Jan 1? Or at least on Dec 26th??? 

 

brian@ebay Please raise our concerns up the chain.  Maybe with Jordan Sweetnam, the new Senior Vice President and General Manager, Americas Market at eBay that just posted about how y'all know "how important sellers are to the site"??

 

 

Member of the Grumpy Old Man crew
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The number one question about the new sales tax process

If I had to guess it is because they don't want the buyers to be "unhappy and confused" about the multiple amounts for one sale. I've seen a few complaining and/or confused on the boards because they thought they had been overcharged or double charged because the item and shipping was one amount and the sales tax a separate amount.

 

Can't have the little darlins' all upset and confused with the Christmas shipping season upon now can we?

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The number one question about the new sales tax process

Ebay may be pressing for early implementation because there have been a number of posts on these boards from buyers unhappy about the doubled number of transactions on either paypal, their bank account or credit card.    In some cases, those buyers are up against transaction count limits that are costing them extra money.

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The number one question about the new sales tax process

brian@ebay
eBay Staff (Alumni)

@dtexley3 wrote:

Why November????

 

 

I mean seriously, what site releases what appears to be a significant code change in the middle of the busiest time of the year?  eBay has had an exceedingly poor track record of late with site updates being released prematurely, so there's a potential that this could go south, quickly.

 

What's the rush?  Why can't this be released after Jan 1? Or at least on Dec 26th??? 

 

brian@ebay Please raise our concerns up the chain.  Maybe with Jordan Sweetnam, the new Senior Vice President and General Manager, Americas Market at eBay that just posted about how y'all know "how important sellers are to the site"??

 

 


Hi @dtexley3, historically our goal has been not to have any major disruptions in 4th quarter. There is no process change for either buyers or sellers when this change goes into effect. Both parties will continue to transact as they do today. Because of this, we do not consider it a major change that would cause disruptions to business on the site. 

 

Brian,
Community Team
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The number one question about the new sales tax process

So does this mean our sales totals will now include tax we were never paid?

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The number one question about the new sales tax process

Wow, little darlings? Why would any seller speak that way about their paying customers in a public forum? 

 

For what it’s worth there have been buyers having banking issues including fraud alerts because of the way this was implemented. When this started it looked like all the tax payments were being remitted to some state they neither lived in nor purchased from. Even when that was fixed it was not clear what the second charge was for. I mean god forbid eBay name it something understandable like SALES TAX.

 

If the “little darlings” are getting upset it’s for several very good good reasons.

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The number one question about the new sales tax process


brian@ebay wrote:

@dtexley3 wrote:

Why November????

 

 

I mean seriously, what site releases what appears to be a significant code change in the middle of the busiest time of the year?  eBay has had an exceedingly poor track record of late with site updates being released prematurely, so there's a potential that this could go south, quickly.

 

What's the rush?  Why can't this be released after Jan 1? Or at least on Dec 26th??? 

 

brian@ebay Please raise our concerns up the chain.  Maybe with Jordan Sweetnam, the new Senior Vice President and General Manager, Americas Market at eBay that just posted about how y'all know "how important sellers are to the site"??

 

 


Hi @dtexley3, historically our goal has been not to have any major disruptions in 4th quarter. There is no process change for either buyers or sellers when this change goes into effect. Both parties will continue to transact as they do today. Because of this, we do not consider it a major change that would cause disruptions to business on the site. 

 


How about a "dumbed down" step by step explanation of what today"s message means.

 

 

Message 7 of 103
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The number one question about the new sales tax process

(Psst! Psst! Ask him whether sellers will have to pay PayPal or Managed Payments transaction fees on the total of item cost + shipping + sales tax now.)
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The number one question about the new sales tax process

brian@ebay 

So these sales tax amounts will not be included in our 1099s, nor will we have to pay fees on the amounts, correct?

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The number one question about the new sales tax process

thats what I need to know
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The number one question about the new sales tax process

Quote - "

  • In states where eBay is required to collect Internet Sales Tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.

 

  • Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority."

That sure sounds to me as though the ST amounts will be added to our sales totals. 

 

Second bullet point?

 

As usual with ebay announcements - clear as mud.

 

(but we sellers shouldn't worry our little heads about it).

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The number one question about the new sales tax process


@wastingtime101 wrote:

brian@ebay 

So these sales tax amounts will not be included in our 1099s, nor will we have to pay fees on the amounts, correct?


I'd like to expand on my above question and ask you to lay this out for me like I'm a 6 year old, Brian. Step-by-step.

 

  1. The buyer will be charged once for their order total (item, shipping if applicable, sales tax if applicable). This differs from the current process where the buyer is charged twice - once for the seller's payment and a second time for eBay's management of sales tax. I think that's the only part we all understand. The questions lie in what comes next.
  2. Payment processing multiple choice:
    1. eBay will pull out the sales tax amount before the payment goes to the seller's Managed Payments or PayPal account. The seller will not be subject to fees (final value & payment processing) on the sales tax amount. The sales tax amounts will not be included in the seller's year-end 1099 form.
    2. eBay will not pull out the sales tax until after the payment has been processed by MP or PP.
      1. This means the seller has to pay Payment Processing Fees on the gross total including sales tax.
        1. What does it mean for Final Value Fees?
      2. This also means eBay will recoup the sales tax from the seller by - more multiple choice:
        1. Adding to their monthly invoice
        2. Subtracting from next MP payment. Not sure how they would handle that with PayPal though?
      3. This means the sales tax will or will not be reflected on year-end 1099s?
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The number one question about the new sales tax process


@wastingtime101 wrote:

@wastingtime101 wrote:

brian@ebay 

So these sales tax amounts will not be included in our 1099s, nor will we have to pay fees on the amounts, correct?


I'd like to expand on my above question and ask you to lay this out for me like I'm a 6 year old, Brian. Step-by-step.

 

  1. The buyer will be charged once for their order total (item, shipping if applicable, sales tax if applicable). This differs from the current process where the buyer is charged twice - once for the seller's payment and a second time for eBay's management of sales tax. I think that's the only part we all understand. The questions lie in what comes next.
  2. Payment processing multiple choice:
    1. eBay will pull out the sales tax amount before the payment goes to the seller's Managed Payments or PayPal account. The seller will not be subject to fees (final value & payment processing) on the sales tax amount. The sales tax amounts will not be included in the seller's year-end 1099 form.
    2. eBay will not pull out the sales tax until after the payment has been processed by MP or PP.
      1. This means the seller has to pay Payment Processing Fees on the gross total including sales tax.
        1. What does it mean for Final Value Fees?
      2. This also means eBay will recoup the sales tax from the seller by - more multiple choice:
        1. Adding to their monthly invoice
        2. Subtracting from next MP payment. Not sure how they would handle that with PayPal though?
      3. This means the sales tax will or will not be reflected on year-end 1099s?

I'd like to add to this: Ebay needs to give sellers clear and precise sales records of what sale did and did not have sales tax charged and exactly how much was charged - AND - if ebay is charging us on FVF of that sales tax... because this whole set up has been quite fishy and what do sellers tell IRS "ebay said they collected but give no record of it...instead they list "Sales tax: -- or $0.00" on sales record then sometime on the very bottom in fine print "**We collect and remit tax to the tax authority in accordance with applicable state law. You don't have to pay it to the state." 

The great truth is there isn't one
And it only gets worse since that conclusion...
...There is something about the rigid posture of a proper, authentic blind
As if extended arms reached to pass his blindness onto others.
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The number one question about the new sales tax process

I came here first thing this morning wondering the same about the 1099's. I cant imagine they would be included, but, you never know. I am also sure if they were added, their must be a IRS line somewhere on one of the forms to remove it. Hopefully an answer comes along soon.

 

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The number one question about the new sales tax process

Just,tagging on the end here.

 

Even when a seller collects and remit Sales Tax themselves ... eBay does not charge FVF on the Sales Tax

 

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364 

 

Screenshot_2019-10-02-06-10-19_kindlephoto-551635698.png

 

PayPal, however, does charge ... and Sales Taxes are considered to be part of Gross Receipts for 1099 purposes

 

So really ... the only question for me is ... how is PayPal handling this?

penguins_dont_fly is a Volunteer Community Mentor
Buying and Selling since 2013

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