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]

All money processors apply their fees to the entire amount of money they process.  PayPal did it when we used them as our money processor too.

Final value fees

We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees. If you offer 1-day or international shipping as well as a cheaper or free option (like domestic shipping), the total amount of the sale is calculated based on the cheapest domestic option you offer. If you only offer 1-day or international shipping but no cheaper option like domestic shipping, the total amount of the sale is calculated based on the service the buyer chooses.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

[coolections]

Because you are paying them to do the work for you. If they did not work for you then you would be submitting the tax to all those states you are selling to.

[eburtonlab]

Which specific law do you think eBay is breaking, exactly?

eBay gets to decide how the fee is calculated, and each seller gets to decide individually whether it is worth accepting the terms and listing items or not.

[johnrj1226]

It is  legal to do so - feel  very confident eBay has  checked things out with the  lawyers they have  hired.  Back when PayPal was the Money Processor for eBay they did too and still do for other merchants but at a higher rate than  the  previous 2.9% + 30 cents rates.

 All those merchants, that  accept credit  card purchases are charged a fee for the total amount each transaction.  When you buy gasoline there  are tons of taxes for all sorts of things loaded into the price of gasoline/diesel fuel - just ask the folks in California, New York, Illinois etc

Your total  selling price needs to  recover all you selling costs even that  little  eBay fee amount on the  sales tax and have your buyers  pay for it -  yeah sales tax amounts vary from  state to state, some  have zero ST simply use  an estimated average percentage or  the highest  state sales tax..

[chapeau-noir]

I feel like we're being pranked.

[downunder-61]

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@chapeau-noir wrote:

I feel like we're being pranked.

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You too huh?

[dhbookds]

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@chapeau-noir wrote:

I feel like we're being pranked.

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count me in

[gracieallen01]

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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.

[1tuna]

my guess is because its just easier to do so

[johnrj1226]

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...

[monroe67]

‎@chapeau-noir  wrote:

I feel like we're being pranked.

You too huh?

Me, Too!  Been thinking that for about the last month or so!   

[monroe67]

"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.  

[dbfolks166mt]

     There are already 1,000's of postings about this subject and the answers to them are all the same. Simply search the forum for the subject and you will find your answer. 

[johnrj1226]

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.