What? Message says ebay collected sales tax for me?

[wvpeddler]

Woke up to see I had 2 sales overnite, yay for me!

Then see this message under each sale in a yellow box:

eBay note: This total includes tax that eBay is required to collect from your buyer. You can view the amount paid to you in the sales record. 

Whatttttt?

1. The sales were both international

2. They charged over 8% when my state only charges 6%

3. This hasn't even started yet.

So I go to paypal and no sales tax in paid amount. 
I go to view payment record in Hub and no sales tax there.

And we are going to trust Ebay to collect our money and pay us.

I don't think so.

Anybody else see this?

[myjunqueyourtreasure]

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@mr_lincoln wrote:

@wvpeddler  Read your post but no other replies ... to answer the one question (which I believe is about Adyen), "And we are going to trust Ebay to collect our money and pay us."

-If that question is about Adyen then my answer would be no.  The reason it is no is because eBay has NOT been forthcoming with the details of their agreement with Adyen or answered any of my and other members specific questions about it.  Additionally, in the 3 years as a Seller eBay has not been able to correct certain glitches on the venue (many here before I started to sell from reading here on The Community) no do they respond quickly to new glitches that pop up on all of their update roll outs.

The ultimate list of fears where Adyen is concerned would include (but not limited to):

1. We're sorry, we have no record of your $ 2,500.00 worth of transactions last month.

2. We're sorry but due to a system error we can not transfer any of YOUR money to YOUR bank account until it is resolved.  We anticipate this taking onely 3 months ... but looking on the bright side, that is a whole lot faster then some of the Seller Hub upgrades we are working on ...

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They are having a weekly chat about the managed payments system next Wed which should be interesting.

Don't know if there'll be any actual answers though.

[alison.margaret]

What pjcdn2005 says about Canada is interesting.  As he or she says, it's fairly rare for Canada Post to charge GST + the handling fee on an incoming parcel (and the time I paid duty, it was an error), and I've had a fair number that have been over $20.00.  

As a buyer, I'd probably have a great deal more, but as I rent a PO box in Ogdensburg, NY, I can declare my own stuff, so I avoid the handling fees for American shipments (not to mention the far higher international postage costs).  The CBSA Customs guys there are also usually kind enough not to charge tax on the s&h, just the object itself.  It's the $9.95 handling fee that really irks me - I'm quite willing to pay the actual 13% Ontario HST.  It pays my mum's pension, for one thing!  

[wvpeddler]

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@kcdcpa wrote:

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@wvpeddler wrote:

Woke up to see I had 2 sales overnite, yay for me!

Then see this message under each sale in a yellow box:

eBay note: This total includes tax that eBay is required to collect from your buyer. You can view the amount paid to you in the sales record. 

Whatttttt?

1. The sales were both international

2. They charged over 8% when my state only charges 6%

3. This hasn't even started yet.

So I go to paypal and no sales tax in paid amount. 
I go to view payment record in Hub and no sales tax there.

And we are going to trust Ebay to collect our money and pay us.

I don't think so.

Anybody else see this?

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Check your Ebay Account Fees ..... was the 10% Final Value Fee applied to the actual sales price and to the shipping paid by the buyer ..... or was the Final Value Fee also calulated on the Sales Tax ?

Check the Paypal Fee for that transaction ..... add the actual sale price + the shipping paid by the buyer ..... then multiply that total X .029 and add 30 cents ..... and that calculated amount should = the Paypal Fee that was charged "IF" Paypal did not charge you a fee on the Sales Tax too.

Let us know what you find.

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Sorry to take so long in returning what I found was confusing.

First Ebay only charged me for actual sale price and shipping price.

Paypal on the other hand has me totally confused.

Sale price:     $8.92

Shipping:     $14.25

Fee:                 $ 1.32

Total sale with tax  $25.49

Does Paypal no longer charge $1.00 extra on international sales? So you tell me.

[pjcdn2005]

Sale price:     $8.92

Shipping:     $14.25

Fee:                 $ 1.32

Total sale with tax  $25.49

Does Paypal no longer charge $1.00 extra on international sales? So you tell me.

 _____

The international percentage is 4.4%. It used to be 3.9% (or so) I think but I don't ever recall it being an extra dollar.

You were paid 23.17 for the item plus shipping

$23.17 x 4.4% = $1.02 + .30 = $1.32

 You were not charged a fee on the tax 

[tealt]

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@pingpong517 wrote:

people wake up and smell the coffee.....

there will be and are taxes that should have already been collected, from other states,and OTHER COUNTRIES...there are MANY rules and procedures that go into ..or are in effect.... THIS on-line selling has actually "grey areaed" side tracked, loop holed...the idea are suppose to be paid to other states and countries.....

if ebay is now having to , and will be required =made to inforce...then YES WE will have to do what WE have to.

it is business...and ALL business has these things to deal with ..always changing laws and regulations...and EBAY is a business...and WE USE them to sell ...for our business.....  

IT IS NOT THE OLD DAYS!...progress and computers and data storage...it hass is way better and all want there part...and the Technology has made it possible...not exactly perfect and easy...but possible.....so sorry to say....smell the coffee and adapt and learn , figure out...changes are here and coming to affect us all.

like it or not.

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I'm beginning to think that it is eBay Inc that needs to embrace your message (change happens, adapt and get used to it).

While Amazon and Etsy are/have been collecting state sales tax from buyers in certain states on behalf of their sellers, eBay apparently is not doing the same. 

So far eBay announcements since the June SCOTUS Wayfarer decision have been heavy on Congress-will-do-something and light on any details if Congress doesn't do anything.  Pats on the head and "small sellers have nothing to worry about" words from eBay don't reassure me.

EBay Inc does not seem to be moving toward adapting to "...changes are here and coming to affect us all." on the issue of sales tax collection.

I think it was telling that there was no USA eBay announcement about Australian sales tax collection.

[ted_200]

First, the fact that this is happening, with no Announcement, and no advance warning (via a Seller Update, etc.) is just ridiculous.  Sellers should be well aware in advance of what is happening, not have mysterious stuff happening on transactions that they only find out about after the fact. 

Can Paypal really only show you part of the payment?

In sellers hub it gives me the price of the item and the total cost (which includes tax). But when I go and look at the sales record no tax is shown and total is just bid and shipping. 

That has to be the way it works, if eBay is indeed handling it all for the seller.  Otherwise, if the tax were included in the seller's PayPal payment, the seller would have to account for it when they file federal taxes (the amount would be included in the PayPal 1099, which they would then have to reconcile / expense on their 1040). 

When, and if, eBay takes on collecting state sales taxes, that will have to work that way as well, for the same reasons.  Is eBay / PayPal collecting and remitting taxes to various government entities free of charge?  I'm not sure I like that idea... the Australian government is taking 10% of the gross payment, but the U.S. seller is paying 100% of the fees associated with generating that sale and subsequent tax payment? 

[Anonymous]

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@wvpeddler wrote:

Woke up to see I had 2 sales overnite, yay for me!

Then see this message under each sale in a yellow box:

eBay note: This total includes tax that eBay is required to collect from your buyer. You can view the amount paid to you in the sales record. 

Whatttttt?

1. The sales were both international

2. They charged over 8% when my state only charges 6%

3. This hasn't even started yet.

So I go to paypal and no sales tax in paid amount. 
I go to view payment record in Hub and no sales tax there.

And we are going to trust Ebay to collect our money and pay us.

I don't think so.

Anybody else see this?

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Hi @wvpeddler, you can see more information about any potential VAT charges by visiting our Help Page on the topic. Definiltey touch base with Customer Service if you have any transaction specific questions.

[castlemagicmemories]

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@myjunqueyourtreasure wrote:
Import taxes should never have been collected on goods to Australia anyway if they were under the $1,000 threshold but I've heard reports PB often collects duties that aren't actually due.

Seems to be the case especially with Canadian buyers, from what I have read. 

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[pjcdn2005]

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@castlemagicmemories wrote:

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@myjunqueyourtreasure wrote:
Import taxes should never have been collected on goods to Australia anyway if they were under the $1,000 threshold but I've heard reports PB often collects duties that aren't actually due.

Seems to be the case especially with Canadian buyers, from what I have read. 

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_______________

If you're saying that you've read about Canadian buyers being charged duty when not due, those posts aren't always correct.   Some buyers think that they are being charged duty when there are actually being charged gst or hst which are sales taxes.  Sales taxes are due when an item is over C$20 even when an item is duty free.  Plus some buyers think that everything sent from the US should be duty free but in reality, it is only duty free if made in the US, not just because it is sent from there.

But there are a few things that I'm aware of that PB charges tax on even though they are zero rated non taxable items such as buillon and some grocery items but the majority of items bought on ebay are taxable.

Edit - I have no idea where this white space is coming from.

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[computerpartsandrepair]

Yes, but I am having a hard time getting a straight answer from them.  We just started noticeing ours a week ago.  But it only does it to certain orders?  I am so confused, can you help???

[pjcdn2005]

eBay is collecting tax on some of the states that require tax to be charged immediately on out of state sales.   That's why you would just see that on some transactions. Since ebay is the one collecting and remitting it, this shouldn't affect you.

Does that help?

[ypdc_dennis]

States where (and when) ebay will be handling sales tax:

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

[carpartguru]

I just sold something to state of Washington and ebay charged them taxes, but WA Tax website states if I'm under $10,000 and under 199 transaction I should not collect taxes. 

!!!???

[pebbles3sandi]

Yes, I have this exact issue today. Charged $3.70 tax on $40.69 sale to Australia. The tax rate must be fractional because it's not an even %, even without the a shipping charged by me.

I have no idea if they are charging on both the item and the shipping, just the item or what but it certainly does not show up anywhere how much they collected. I have to calculate that myself. 

I jumped onto PP to check and see if it appears as $40.69 for the total sale as well because I wanted to be sure they are not reporting the tax as "income" to PP. They are not. The PP transaction is showing the correct sale total (shipping included) minus the tax they collected. The 2 totals between eBay and PP are not the same.

I honestly prefer to see them collecting and dispersing the tax payments but eBay really needs to break out a new column showing the tax they charge and the buyer paid rather than making the seller break it down on their own. This could far too easily be missed when trying to report correct amounts for income from sales to reconcile with PP records.

[pebbles3sandi]

It appears that I was charged 1.5% fee on the shipping cost and 9.2% fee on the item price for the final value fees on my transaction to Australia. The tax does not appear in the amounts that eBay has reported in their fee record schedule- but I did think that 9.2% was a rather odd figure! Item prices was $18.99 with $1.74 fvf, fvf on shipping cost of $18 was $0.27. Purchase total for the buyer was $40.69 WITH eBays tax included. My charge for the item was $36.99- so the tax they charged was $3.70. How they got $3.70 I'm guessing is based upon the price of the item + shipping at 10%. 

Pretty sure VAT mentioned by others at 8% is for Great Britain, not Australia.