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? 

[chapeau-noir]

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@doc-holmes wrote:

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@forward-motion wrote:

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

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

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Important distinction!  If you have a team of lawyers and it's high class, it's definitely a 'suite'.  If you have Vinny the lawyer with his office upstairs off Canal Street, it's just 'suit.'

[funfashion2005]

My point is not that ebay charges sales taxes, the buyer pays for it anyways.

My issue is that ebay is being sneaky and charges sellers FVF on tax money that goes to the sate, not to seller.

  Ebay is charging  SELLERS final value fee on that extra tax, as if we-sellers- received that tax money. However, sellers obviously do NOT receive any of it.

So basically ebay is charging us fee for money we did not earn! As a result, ebay profits millions of dollars in extra FVF from sellers, while we are being ripped offf-again!

ebay's happy because  it shows as higher profits for ebay shareholder. . They know sellers will take years before they catch up to this scam and eventually file a class action lawsuit. They've already made millions of dollars and appease their shareholders.. 😞

[funfashion2005]

My point is not that ebay charges sales taxes, the buyer pays for it anyways.

My issue is that ebay is being sneaky and charges sellers FVF on tax money that goes to the sate, not to seller.

  Ebay is charging  SELLERS final value fee on that extra tax, as if we-sellers- received that tax money. However, sellers obviously do NOT receive any of it.

So basically ebay is charging us fee for money we did not earn! As a result, ebay profits millions of dollars in extra FVF from sellers, while we are being ripped off-again!

ebay's happy because  it shows as higher profits for ebay shareholder. . They know sellers will take years before they catch up to this scam and eventually file a class action lawsuit. They've already made millions of dollars and appease their shareholders.. 😞

[funfashion2005]

You're paying final value fee on the state tax collected by ebay from each buyer. Check you statements..

You- as seller- do not see any profit from the sales tax they charge, yet they deduct additional fees from you.

[funfashion2005]

I didn't know that. What other sites charge it, and do you think it's fair?

[maxine*j]

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@funfashion2005 wrote:

...  My issue is that ebay is being sneaky and charges sellers FVF on tax money that goes to the sate, not to seller...

 😞

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But has already been pointed out to you, there is nothing "sneaky" about this.  It is what PayPal did when it processed your payments for eBay sales.  It is what all payment processors do and have done since the invention of the credit card.   The processor takes its fee based on the total sale to the buyer:   Merchandise, handling, shipping, surcharges, sundry costs, sales tax.  That is not hard to understand, surely.

=

[soh.maryl]

It seems like quite a few sellers have figured out that it has to be costing eBay some money to handle the state sales tax payments for about 45 states and so it's ok for the FVF to be charged on state sales tax.

[tinkurbel]

yes, but paypal was not charging 12.55%  I paid over $5 in fees for a $20 sale. 

Plus the shipping cost they calculated was incorrect. 

[rfmtm]

Yes, it costs ebay money to process the sales tax, but Marketplace states pay for it with a discount back to ebay to cover that cost.  Not to say ebay shouldn't still charge a payment processing fee, but that should be 3% like all the other processors, not the full FVF of 12%-15%.

[dhbookds]

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@tinkurbel wrote:

yes, but paypal was not charging 12.55%  I paid over $5 in fees for a $20 sale. 

Plus the shipping cost they calculated was incorrect. 

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Neither was paypal sending taxes for 40 or more states for each seller...........

[donsdetour]

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@rfmtm wrote:

Yes, it costs ebay money to process the sales tax, but Marketplace states pay for it with a discount back to ebay to cover that cost.  Not to say ebay shouldn't still charge a payment processing fee, but that should be 3% like all the other processors, not the full FVF of 12%-15%.

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Hmm:

You could be forced to collect such for each state: and of course remit such.

Venues or market place facilitators would only need to report a sale.

Such would force YOU to go with learning all them laws, and such for each location and so on.

I bet you would find your self audited by say 5 or ten states a year doing such....

Just saying what you could end up with....

[stainlessenginecovers]

Fees on Sales Tax on a $100 item sold is a $1

That $1 buys you the following:

Not having to collect/report and remit up to 3600 different Counties that collect sales tax.

oh; don't bother with the 'nexus' minimums conversation; because if the Facilitator Law was not passed, the next batter up was simply lowering or removing the Nexus

[this*old*attic · Accepted solution]

They aren't charging you for the tax.

They are charging you for handling the total amount of the customer's payment.

[this*old*attic]

Exactly.... this is hand in hand with the outright tax evaders screaming about the 1099s.....

Under the physical presence laws, we were all supposed to collect taxes and remit them to the state, when a customer lived in our same state, all along as well.

[juscle-22]

Dude are you stupid or what?It is spelled lawsuit... S u i t... If you spelled it S u i t e it would be  pronounced sweet.Unless you're one of those idiots that spells the word shop Shoppe and puts an E on the end of everything, which is incorrect. So if you're going to open up your mouth to try to school someone and make them look stupid... at least make sure that you are correct yourself, otherwise you just end up looking dumb, which you have succeeded in doing now. Peace dumbo.