Why does Ebay include tax to charge the 12.9% final fee

[car_226227]

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.

[mam98031]

@johnrj1226 

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%.

[mam98031]

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@gracieallen01 wrote:

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@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.

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Bottom line - Because they can, and they want the money.

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Just like other sites do.  I don't like it anymore than anyone else, but it isn't just Ebay.  

[mam98031]

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@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.  

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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.

[chapeau-noir]

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@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...

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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.

[johnrj1226]

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 -

https://dor.georgia.gov/document/document/general-rate-chart-effective-april-1-2022-through-june-30-.... 

[mam98031]

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@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 -

https://dor.georgia.gov/document/document/general-rate-chart-effective-april-1-2022-through-june-30-.... 

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Yes, thank you.  That supports what I said earlier.

[monroe67]

"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!

[donsdetour]

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@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.

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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.

[dbfolks166mt]

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. 

[johnrj1226]

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

[janet9988]

It IS legal and it is also YOUR choice to list an item on ebay.

[sniper10000]

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. 

[sniper10000]

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. 

[johnrj1226]

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..

[sakic92710]

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.