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]

It most likely won't show in PP as it wasn't paid to YOU.

[pjcdn2005]

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@wvpeddler wrote:

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@pjcdn2005 wrote:

Were these sales to Australia?  The government there now requires that 10% sales tax be collected on items being purchased from outside of the country so ebay is collecting it and paying it to Australia.  I am having problems searching the announcements on .com so I don't know if they announced it here but there is an announcement on .ca about it.

06-01-2018 06:44:54 AM

New laws regarding the Australian Goods and Services Tax (GST) are going into effect in Australia. Australian GST is a tax of 10% on most goods and services sold or consumed in Australia, and today, it already applies to high-value goods costing greater than AU $1,000.

Under the new laws, eBay is responsible for collecting GST on low-value imports and paying it to the Australian Government. In order to comply with these obligations, as of July 1st, 2018, eBay will begin collecting GST from Australian buyers for items purchased from outside of Australia with a value of less than AU $1,000 on behalf of the Australian Tax Office.

If an item being sold is located outside of Australia, after July 1st, the item’s price may appear 10% higher to prospective buyers located in Australia as a result of the tax being applied. The GST will be added to the buyer’s order at checkout.

Sellers who sell to Australian buyers will continue to receive the full payment for their orders (item price + shipping and/or handling costs). They don’t need to register with any Australian tax authorities, or take any action at all.

Well since the sale is to Australia then this might apply. But still leaves questions as the payment in paypal is exactly like it should be, the price I was asking and the shipping. No taxes collect where ever they are going (Ebay).

You would think Paypal would break down the whole payment including taxes but it didn't.

Looks like seller paid normal price. 

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 The way that it was explained to me, if you list an item at $10, an Australian will see it as $11.  When they pay, the $10 goes to you and the $1 goes the ebay who will then pay the Australian government.  I don't know if they changed exactly how they are showing the tax but regardless, you won't see the tax in Paypal because it wasn't paid to you. Sellers that use the gsp only see the amount paid to them, not the amount paid to PB...this is the same thing.

[pjcdn2005]

New laws regarding the Australian Goods and Services Tax (GST) are going into effect in Australia. Australian GST is a tax of 10% on most goods and services sold or consumed in Australia, and today, it already applies to high-value goods costing greater than AU $1,000.

Under the new laws, eBay is responsible for collecting GST on low-value imports and paying it to the Australian Government. In order to comply with these obligations, as of July 1st, 2018, eBay will begin collecting GST from Australian buyers for items purchased from outside of Australia with a value of less than AU $1,000 on behalf of the Australian Tax Office.

If an item being sold is located outside of Australia, after July 1st, the item’s price may appear 10% higher to prospective buyers located in Australia as a result of the tax being applied. The GST will be added to the buyer’s order at checkout.

Sellers who sell to Australian buyers will continue to receive the full payment for their orders (item price + shipping and/or handling costs). They don’t need to register with any Australian tax authorities, or take any action at all.

Well since the sale is to Australia then this might apply. But still leaves questions as the payment in paypal is exactly like it should be, the price I was asking and the shipping. No taxes collect where ever they are going (Ebay).

You would think Paypal would break down the whole payment including taxes but it didn't.

Looks like seller paid normal price. 

[kcdcpa]

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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.

[wvpeddler]

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@dhbookds wrote:

Australia was what I was thinking of..........

As to what / how they collected......  Are you saying you received the price + shipping in paypal less the paypal fee?  That ebay just shows the price + shipping as the total  so you can't figure out where the sales tax was deducted? 

If that's the case, they must be adding on for the buyer to pay, but not showing it to you, since they are the payer of the tax and you have nothing to do with it........

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Yes in paypal it just shows the normal transaction. The price I was asking plus shipping, minus fees. 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. 

[pjcdn2005]

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@myjunqueyourtreasure wrote:
It would be interesting to know of GSP is still collecting import fees on top of ebay collecting the GST

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 The gst is part of the import fee so ebay shouldn't be collecting it if the seller is using  global shipping.  But I suppose that will depend on how their system is set up.

[myjunqueyourtreasure]

Sleazy accounting. ebay should not be showing the tax on your sales records as you never collected it.

[myjunqueyourtreasure]

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.

[pjcdn2005]

Yes Paypal can show you just part of the payment.  They are not going to show you a payment you didn't receive.  You're not paying Paypal fees or ebay fees on that amount so you're unlikely to see anything about it on your ebay invoice either.

I'm assuming that don't pay ebay fees on the amount you collect for sales tax?

I was wrong earlier...I just checked and if I look at your listing as if I was in Australia, the price is the same but they have an extra line added in under the shipping tab area 'Goods and Services Tax (GST) may apply'

[pjcdn2005]

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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.

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But they are due on items under that amount now so they will be part of the import fees just like gst is part of the import fees on Canadian gsp puchases that are over $20C.

[myjunqueyourtreasure]

GST isn't considered Customs/Duty fees though. They're separate.

[mr_lincoln]

@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 ...

[pjcdn2005]

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@myjunqueyourtreasure wrote:
GST isn't considered Customs/Duty fees though. They're separate.

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They're not separate.  The import fees that PB charges are a combination of sales tax (gst), duty and a $5-$6 handling fee.  In Canada, gst and duty are not charged for online purchases under $C20.  In Australia there was no duty or tax charged on items less than A$1000. Now they charge sales tax on purchases over A$10. 

If an item is sent directly to Canada via USPS,  customs rarely charges tax or duty on items less than $100 or $200 but companies like PB are supposed to charge for everything. However, PB doesn't give you a list of what they charge but often when I try to figure it out, it looks like they are charging me for gst and a handling charge. They doesn't always seem to charge for duty.

[michael_atw]

I got a message thru ebay perhaps a month ago.  Seen it on Australia transactions since. 

[kcdcpa]

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@pjcdn2005 wrote:

Were these sales to Australia?  The government there now requires that 10% sales tax be collected on items being purchased from outside of the country so ebay is collecting it and paying it to Australia.  I am having problems searching the announcements on .com so I don't know if they announced it here but there is an announcement on .ca about it.

06-01-2018 06:44:54 AM

New laws regarding the Australian Goods and Services Tax (GST) are going into effect in Australia. Australian GST is a tax of 10% on most goods and services sold or consumed in Australia, and today, it already applies to high-value goods costing greater than AU $1,000.

Under the new laws, eBay is responsible for collecting GST on low-value imports and paying it to the Australian Government. In order to comply with these obligations, as of July 1st, 2018, eBay will begin collecting GST from Australian buyers for items purchased from outside of Australia with a value of less than AU $1,000 on behalf of the Australian Tax Office.

If an item being sold is located outside of Australia, after July 1st, the item’s price may appear 10% higher to prospective buyers located in Australia as a result of the tax being applied. The GST will be added to the buyer’s order at checkout.

Sellers who sell to Australian buyers will continue to receive the full payment for their orders (item price + shipping and/or handling costs). They don’t need to register with any Australian tax authorities, or take any action at all.

We encourage sellers to seek outside counsel should they have questions about their tax collecting and reporting obligations.

For more information, read Australia’s 2018 Winter Seller Update, or visit the Australian Taxation Office website.

 https://community.ebay.ca/t5/Announcements/Australia-GST-on-low-value-goods/ba-p/403128

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Thank you for posting that link to the Ebay Canada Announcement.

Here is the link to all of the Ebay USA Announcements:

https://community.ebay.com/t5/Announcements/bg-p/Announcements?nobounce

Radio Silence regarding the Australia VAT issue change.

I guess that the Ebay USA Seller Team did not think that the change was important enough to issue as a formal announcement about how the change was going to work.

Obviously, Ebay Canada gets a big thumbs up on this one for their communication skills.

[kcdcpa]

New laws regarding the Australian Goods and Services Tax (GST) are going into effect in Australia. Australian GST is a tax of 10% on most goods and services sold or consumed in Australia, and today, it already applies to high-value goods costing greater than AU $1,000.

Under the new laws, eBay is responsible for collecting GST on low-value imports and paying it to the Australian Government. In order to comply with these obligations, as of July 1st, 2018, eBay will begin collecting GST from Australian buyers for items purchased from outside of Australia with a value of less than AU $1,000 on behalf of the Australian Tax Office.

If an item being sold is located outside of Australia, after July 1st, the item’s price may appear 10% higher to prospective buyers located in Australia as a result of the tax being applied. The GST will be added to the buyer’s order at checkout.

Sellers who sell to Australian buyers will continue to receive the full payment for their orders (item price + shipping and/or handling costs). They don’t need to register with any Australian tax authorities, or take any action at all.

We encourage sellers to seek outside counsel should they have questions about their tax collecting and reporting obligations.

For more information, read Australia’s 2018 Winter Seller Update, or visit the Australian Taxation Office website.

 https://community.ebay.ca/t5/Announcements/Australia-GST-on-low-value-goods/ba-p/403128

[pingpong517]

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.