The number one question about the new sales tax process

[dtexley3]

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"??

[dtexley3]

brian@ebay can you come back and address the questions raised by other posters?

I'm still highly concerned by the implementation timeline.  There are so many ways this could impact sellers (and buyers) that is multiplied by the fact it's the busiest season.

[brian@ebay]

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@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?

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Hi @wastingtime101, 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. The PayPal processing fee applies to the gross transaction value (item value, shipping and sales tax). eBay Final Value fee's will be based on item price and shipping cost. No eBay Final Value fee will be charged for sales tax.

Sellers will need to contact PayPal for more information about PayPal fees and the 1099 form.

[the*dog*ate*my*tablecloth]

brian@ebay  Will the processing fee for the sales tax portion of the payment be charged to Ebay since they are the ones required to collect and remit the sales tax? It seems like it would be HIGHLY unethical for Paypal to charge processing fees on money the seller will never see AND is not responsible for collecting and remitting.

[ekmadonna]

He just said it, Pay-pal will be charging US the sellers for the BUYERS and Ebays remittance of the SALES TAX! 

[buyselljack2016]

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@ekmadonna wrote:

He just said it, Pay-pal will be charging US the sellers for the BUYERS and Ebays remittance of the SALES TAX! 

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Correct. We will be charged a PP fee for processing funds that never come to us.

[the*dog*ate*my*tablecloth]

Yes I know he just said it and I said since the responsibility now lies with Ebay then Ebay should be paying the fees. It is unethical for Paypal to charge sellers fees on something sellers are not responsible for.

[thehonorabletrader]

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@the*dog*ate*my*tablecloth wrote:

Yes I know he just said it and I said since the responsibility now lies with Ebay then Ebay should be paying the fees. It is unethical for Paypal to charge sellers fees on something sellers are not responsible for.

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Technically the laws make sellers responsible for the sales tax. eBay isn't required to collect and remit on sellers behalf, eBay is just required to insure it's collected. eBay could easily send the funds to each seller and have them remit it on their behalf. eBay is just taking some of the hard work out of it (and I am sure other market places will to). 

Also, I will point out, that all marketplaces are going to be subject to this sales tax, it's not unique to eBay and most sellers are going to get stuck paying the additional fees. 

This is nothing unique to eBay or PayPal. This has been going on for decades. 

[the*dog*ate*my*tablecloth]

The whole point of the Marketplace Facilitator laws is to take the burden off small sellers according to the guidelines of the Quill decision.

I believe you’re wrong about sellers being responsible for the tax. I think the rules are pretty clear the burden is now on the marketplaces. eBay isn’t doing this just to be nice. I also think you’re wrong that eBay can elect to send the money to sellers and have the remit. They’re following the new laws.

[myangelandmyprincess]

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@the*dog*ate*my*tablecloth wrote:

Yes I know he just said it and I said since the responsibility now lies with Ebay then Ebay should be paying the fees. It is unethical for Paypal to charge sellers fees on something sellers are not responsible for.

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THIS  I don't see how this really follows the law.  the law is make ebay responsible and not the third party sellers but when you have the third party seller paid the price and thus fees it doesn't leave the third party seller out of it like it should.  All so buyers don't have two payments....glad i quit selling last month

[pink.fish.rule]

So now we'll be paying fees on sales tax we never get paid AND no doubt it will show up on our 1099s from PP as "income".

Just one more thing seller's aren't 'responsible' for but we have to keep track of.

Guess no impact on sellers was just one more blatant lie.

[myangelandmyprincess]

by the way this only applies to paypal and not managed payments  I'm guessing because managed payments goes somewhere else before the seller then gets split.  So this is an issue with ebay, taxes, and paypal payments.  Personally I don't feel i follows the nature of the law to leave the third party seller out of it 

[pink.fish.rule]

The ONLY reason ebay has decided to do this is to pad their bottom line at seller's expense once more.

I doubt they were very concerned about the buyers until they figured out they could pass off the processing fees to the sellers.

[7606dennis]

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@thehonorabletrader wrote:

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@the*dog*ate*my*tablecloth wrote:

Yes I know he just said it and I said since the responsibility now lies with Ebay then Ebay should be paying the fees. It is unethical for Paypal to charge sellers fees on something sellers are not responsible for.

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Technically the laws make sellers responsible for the sales tax. eBay isn't required to collect and remit on sellers behalf, eBay is just required to insure it's collected. eBay could easily send the funds to each seller and have them remit it on their behalf. eBay is just taking some of the hard work out of it (and I am sure other market places will to). 

Also, I will point out, that all marketplaces are going to be subject to this sales tax, it's not unique to eBay and most sellers are going to get stuck paying the additional fees. 

This is nothing unique to eBay or PayPal. This has been going on for decades. 

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Actually, I believe that the marketplace facilitator laws puts the responsibility for collecting and remitting of the tax on the facilitator and not the seller.  The responsibility for paying the sales tax still rests with the buyer.

With regard to PayPal, the question needs to be addressed with them.

[myangelandmyprincess]

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@pink.fish.rule wrote:
The ONLY reason ebay has decided to do this is to pad their bottom line at seller's expense once more.

I doubt they were very concerned about the buyers until they figured out they could pass off the processing fees to the sellers.

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I'm not sure how it pads their bottom line 

[pink.fish.rule]

Because they pass off the processing fees to sellers?