Why does Ebay include tax to charge the 12.9% final fee
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07-13-2022 11:27 PM
why does Ebay include sales tax when they charge their final value fee? How is it even legal given I do not see any of the sales tax money to begin with. Granted its not much in most cases, but it certainly takes from what I do get.
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 10:57 AM
FYI, Paypal rates have gone up. The per transaction fee is now 49 cents and the processing fee varies between something like 2.99% and 3.49%.
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 10:58 AM
@gracieallen01 wrote:
@car_226227 wrote:why does Ebay include sales tax when they charge their final value fee? How is it even legal given I do not see any of the sales tax money to begin with. Granted its not much in most cases, but it certainly takes from what I do get.
Bottom line - Because they can, and they want the money.
Just like other sites do. I don't like it anymore than anyone else, but it isn't just Ebay.
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 11:03 AM
@monroe67 wrote:"why does Ebay include sales tax when they charge their final value fee? . . . . . Granted its not much in most cases, but it certainly takes from what I do get."
Yes, it does.
Using as an example one or two sales (by my selling ID) where the sales tax was around $9.00 (Los Angeles County . . . .) The 12.9% FVF on $9.00 comes to $1.16.
What could I buy for $1.16? Half a small Diet Coke from McDonalds? Less than half an individual serving of coleslaw from Kentucky Fried Chicken?
But here is what I do get from having to pay eBay $1.16 on the sales tax portion:
eBay takes care of all the legal requirements and paperwork. I do not have to figure out the process of sending $9.00 to the California Franchise Tax Board (that's the name of our state's taxation authority), making sure I have the proper cover documents, filling them out correctly, making sure that I don't miss a deadline. And that's just for California. I also sell to other states that tax internet sales.
The fact that eBay charges their fee on sales tax? IMO -- priceless.
Sales tax is NOT a flat rate in any state, to include California. It may be 9% in some places, 10% in others or even 6% in other places. It varies across the nation and even within each state.
The sale price of something to accomplish a $9 sales tax on the sale means you sold approximately $100 in your products.
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 11:05 AM
@johnrj1226 wrote:Just wonder how the woke crowd will rewrite classic novels like "Gone With The Wind", "Scarlett Letter", "Grapes of Wrath", "Last of the Mohicans", etc. They were pretty good reads in HS many moons ago...
I don't think the "woke" crowd is going to rewrite any of those, though the people who seem sound asleep may ban them, like they're trying to ban anything else they don't like.
“The illegal we do immediately, the unconstitutional takes a little longer.” - Henry Kissinger
"Do not obey in advance." Timothy Snyder "On Tyranny"
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 11:24 AM
In the state of Georgia there are 5 different sales taxes used by one. One county has two different taxes (depending if your are shopping in Atlanta or not. This is no doubt not uncommon.
See chart -
"Stay away from negative people, they have a problem for every solution." A. Einstein
"The Devil made me do it!" - Flip Wilson
"If the band can only play loud - they ain't no good - peps too!" J.R. Johnson
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 11:41 AM
@johnrj1226 wrote:In the state of Georgia there are 5 different sales taxes used by one. One county has two different taxes (depending if your are shopping in Atlanta or not. This is no doubt not uncommon.
See chart -
Yes, thank you. That supports what I said earlier.
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 11:53 AM
"Sales tax is NOT a flat rate in any state, to include California. It may be 9% in some places, 10% in others or even 6% in other places. It varies across the nation and even within each state.
The sale price of something to accomplish a $9 sales tax on the sale means you sold approximately $100 in your products."
Yes. Of course. I live a bit south of Los Angeles County and our sales tax rate is still hovering below 8%. I sold something to my midwestern home state earlier this year and was surprised to see their sales tax was 6% when I remember it as 4% when I was a kid. (A long, long time ago: JFK was the president.)
That's another reason I gladly accept eBay taking a FVF on sales tax. Their computer systems calculate sales tax immediately based on the buyer's mailing zip code. There is no way in this life or any other that I could keep track of the various sales taxes throughout the country, let alone submitting the correct tax amount every month or every quarter to all the states my buyers live in.
And, yes, that one sale was about $100.00. Lucky for me. I used it to pay most of my annual automobile registration fee that year. I only wish I could open a drawer again this year and find something that would sell for such a good price!
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 11:53 AM
@car_226227 wrote:why does Ebay include sales tax when they charge their final value fee? How is it even legal given I do not see any of the sales tax money to begin with. Granted its not much in most cases, but it certainly takes from what I do get.
Because they can. It is legal do do so.
Yet think about it this way:
If you had to collect all then taxes and do the paper work and then remit on time (or face the fines for late): as well as possible audits from each state: how much would that cost you.
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 01:53 PM
Too hard for some people. Grew up on the Dewey Decimal System for all 19 years of my formal education - never heard of Goggle until I was 50 - recieved my first computer (a IBM Think Pad that cost $4800 on a bulk purchase by my employe. This was the days you could lock 'em up. It was sink or swim time. We were our own secretary - our former secretary became a Managers Assistant - same pay.
You don't even need google simple search on this forum reveals these in the last 7 days.
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 03:05 PM
Am aware of the eBay search bars. My reference point was early1994 for being on this planet almost a half century.. Don't think some people have ever found the Help & And Contact tab
"Stay away from negative people, they have a problem for every solution." A. Einstein
"The Devil made me do it!" - Flip Wilson
"If the band can only play loud - they ain't no good - peps too!" J.R. Johnson
Re: Why does Ebay include tax to charge the 12.9% final fee
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07-14-2022 07:33 PM
It IS legal and it is also YOUR choice to list an item on ebay.
Re: Why does Ebay include tax to charge the 12.9% final fee
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11-18-2022 07:50 AM
I get the working for you, but that would be 2.9% processing fee. They charge category fee on tax they collect and then charge us Canadian Tax on that.
For U.S sales we pay on tax they have to pay @12.9% and then 0.4% International fee and then Canadian taxes on that.
Any Canadian business that takes Paypal credit cards etc is charged a fee granted but it is not 12.9% of the total with tax then calculate and chage tax again. We would be in jail if we sold item with tax and charge 12.9% fee then tax again. They collect for the government and they let them keep a % they are greedy thats why no more Paypal for payments....we pay more and dont get $$$ for days instead of instant.
Re: Why does Ebay include tax to charge the 12.9% final fee
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11-18-2022 07:55 AM
Yes we paid on PayPal but ONLY the processing fee 2.9% we didnt pay Category fee for tax also. Ebay would put out message saying no increased cost....because they charged PayPal handed over but we PAID. Same with when eBay said they were processing and no increased cost and many would pay Less.....I have yet to see less it has been MORE since day 1.
Re: Why does Ebay include tax to charge the 12.9% final fee
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11-18-2022 08:13 AM
When PayPal was the Money Processor for eBay they charger their fee %age on the sales tax too. Now PayPal is gone and eBay is the Money Processor via an agreement with Ayden the are the Money Processor. Nothing illegal, illicit or immoral about it. Common industry practice for Money Processors. It is what it is.
eBay clearly defines what their fees are applied to when the Managed Payment program was made effective and announced.
Solution: Include the added cost to your items price (plus all you other cost of sales plus your expected profit margin) and have your buyers pay for it..
"Stay away from negative people, they have a problem for every solution." A. Einstein
"The Devil made me do it!" - Flip Wilson
"If the band can only play loud - they ain't no good - peps too!" J.R. Johnson
Re: Why does Ebay include tax to charge the 12.9% final fee
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11-18-2022 08:23 AM
They provide zero service for the % of the shipping funds they TAKE from us so, they can use that to cover the cost of the tax 'service' they provide.
