Why is Ebay charging us Final value fee on state sales tax?!! Theyr'e netting more profit from us!

[funfashion2005]

Why is Ebay charging us Final value fee on state sales tax??? ALL of that state tax collected goes directly to the state, yet they're charging us FVF on it! This is outrageous. It's especially painful when you sell a higher value item. They're simply profiting additional $ from our sale, and cutting us short!

I see comments about it on this forum for over a year now, so they must know about it. But they choose to ignore it.

What can we do to make eBay stop it-AND refund us the money they've collected unfairly? 

[maxine*j]

---

@rfmtm wrote:

@maxine*j  I am only talking about the extra Final Value Fee (12%-15%) that ebay is collecting, not the customary payment processing fee (3%) that is normally collected on the Sales Tax portion.

My state of Florida just became a Marketplace state a few months ago, and is one of a few looking into this. Since the state already gives venues a percentage to cover the costs of collecting the tax, I think the point is if the venue is going to charge beyond the customary fee, why should the state pay them too.

You'd have to talk to someone in  the tax department for more information.  I don't remember the other states, they were in a couple of news articles many months ago.  Probably little will come of any of this anyway.

---

Since you are the one who brings this up this claim, and since you're in Florida, how about YOU call the tax department and report back to us what you're told.   I continue to find absolutely nothing on this, anywhere, except in your posts.

There is no such thing as a "customary payment processing fee of 3%" or of any other amount.   Processors charge different amounts, and each charges varying amounts to different merchants, based a number of factors such as the length of time in business, average sale, sales volume, etc.  

=

[rfmtm]

@maxine*j  Guess you missed my statement, that I have already talked to my state sales tax department a couple of months ago just a while after we became a Market Place state.  Actually on more than one occasion.  Their response was they have had some complaints and are looking into it.  Can't tell you anymore than that.

The 3% example was just an average amount charged by most payment processors like PayPal, banks, and other card processors I have used.  There very well may be other charging more. 

My statement was that ebay was the first to impose their full FVF on the sales tax amount, rather than the lower processing fees all other venues at the time were charging.  There may now be others doing that as well.  I don't know.

[rfmtm]

@ste_982388  Did you read my last post?   My state keeps records of calls, my calls and others.  I have called them and you can too.  They don't tell you who called, but they will tell you of complaints and the fact they are looking into things.  

Give me some time, I am searching for the editorial on Auction Bytes / Ecommerce Bytes that had a couple of articles on this.  If it is important to you, you are welcome to search as well.  It was back when ebay first announced how Managed Payments fees would be applied.

[releasethekraken_1]

---

@rfmtm wrote:

@releasethekraken_1   I'll see if I can find one, but that was almost a year ago.  You are welcome to call the Florida state tax department and inquire like I did.  I have no idea what other states are doing, if anything.  I even doubt my state will do much about it either unless more people complain or they think the money is worth it.

I do remember an editorial on Auction Bytes about this when ebay first revealed they were going to charge the full FVF to sales tax, not just a processing fee.   They also stated that some states were looking into this new practice.  So that article has to still be somewhere archived for you to find.  I'll see if I can find it, but again that was back some time ago as well.  Why not call your own state tax office, and see if they have had any complaints, if it is important to you.

---

My state doesn’t have a sales tax. My only concerns are possible bad info being given to other members, and threads like this one popping up over and over again.

[stainlessenginecovers]

So sellers will just keep complaining until ebay raised their fees to 15% and nothing on the sales tax??

You'll pay more, but at least there will be nothing to complain about (regarding this point)

[forward-motion]

OMG!! NOOOO, when did this start??? Let's start a high class law action suit!! 

[rfmtm]

@releasethekraken_1  I understand and agree completely.  I only posted what I know first hand for my State and no other, and what other facts I believe are logically true from reliable sources.   All really doesn't make a difference I suppose, because I haven't seen anymore news about it, and little any of us can do about it anyway.

I am not really complaining about it, other than I think out state sales should still be tax free, but at least I don't have all the accounting work now that it isn't, so don't mine paying ebay.  However, buyers, which I am too, just end up paying more.

[mod-designs4u]

I believe it comes down to a philosophical discussion of what an item is "worth" (total sales price with sales tax and perhaps a shipping fee) after a willing buyer pays a willing seller. Some states have a sales tax and others do not. I think that state sales taxes range from about 4% to 10% and some states don't have a sales tax at all. Ebay charges the FVF fee based on what a willing buyer is willing to pay a willing seller including the sales price, shipping cost and state sales taxes. It would be wise for eBay sellers to consider these cost parameters when listing items for sale on this sales platform. 

[doc-holmes]

---

@forward-motion wrote:

OMG!! NOOOO, when did this start??? Let's start a high class law action suit!! 

---

I believe it's a high class action "suite". 

[kennys-kollectibles]

Seller location has everything to do with it in the real world, but in the backward ebay world

they will spin it the way that will send money coming their way.  

[kensgiftshop]

---

@sagehill03 wrote:

Better question. Is this even legal.

---

Why wouldn't it be legal?

They process the payment don't they?

[kensgiftshop]

---

@donsdetour wrote:

Oh and PP use to make a profit also on tax if you did not know.....

---

And so do credit card companies, when you pay your credit card bill every month.

[donsdetour]

---

@kensgiftshop wrote:

---

@donsdetour wrote:

Oh and PP use to make a profit also on tax if you did not know.....

---

And so do credit card companies, when you pay your credit card bill every month.

---

Of course every one want a piece if they can get it.......

Reminds me of that poster where all them mice are lining up behind the one caught in a trap, each waiting there turn....

[forward-motion]

Whatever it is we need to start it! 

[bonjourami]

Silly.