Will eBay be required pay Sales Tax on FVF Shipping + Handling

[yongscholar]

Will eBay be required to pay and show sales tax calculation  FVF on shipping in the seller's monthly invoice?  >They Should!

[7606dennis]

I don't quite understand your question.  If there is a charge for S&H included on the the invoice, I would think that it would be included when calculating any sales tax due.  Providing, of course, that state law considers such things taxable.  However, I don't believe eBay would be the one paying the tax since sales tax is the responsibility of the buyer in most cases.  Thus, it would most likely be the eBay seller that would have to pay the tax although eBay might be responsible for collecting and remitting it.  The FVF's would be income for eBay.

[yongscholar]

from: member > to > member,

Yes, as expected the answer maybe the same from hundreds of people. Your answer is partially right. "The FVF's would be income for eBay"  Go back revisit the question and think deeper.

[the*dog*ate*my*tablecloth]

More States every month are requiring Ebay to collect and remit sales tax. That money never comes to the seller so FVF are not relevant.

For in state sales or economic nexus sales the FVF is calculated on the total. Why would you need a breakout? It’s an expense like any other?

[7606dennis]

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@yongscholar wrote:

from: member > to > member,

Yes, as expected the answer maybe the same from hundreds of people. Your answer is partially right. "The FVF's would be income for eBay"  Go back revisit the question and think deeper.

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If the handling is included on the invoice with the FVF's and if the buyer's state deems shipping and handling to be taxable under their sales tax statutes, eBay could very well be required to collect tax on the entire amount of the invoice.  However, as I previously mentioned, eBay would not be the one paying the sales tax.  That honor falls on the buyer.  In this case, the buyer would actually be the eBay seller that is buying the service covered by the invoice from eBay.

The amount of the invoice less sales tax collected would be income for eBay, just as the amount of a seller's sale would be.  However, tax on income and sales tax are two entirely separate things.

Of course, all this is merely my opinion since I'm not an income or sales tax specialist.  I would advise asking a CPA or other tax professional about such matters if you seek accurate information on the subject.

[luckythewinner]

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@yongscholar wrote:

Yes, as expected the answer maybe the same from hundreds of people. Your answer is partially right. "The FVF's would be income for eBay"  Go back revisit the question and think deeper.

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Or you could simply phrase it better. 

[yongscholar]

from: member > to > member

Final Value Fee charged by eBay is revenue earned or recognized for providing a auction service. Such revenue is subject to Federal Income Tax. You cannot be saying that a FVF > Final Value Fee charge on shipping is of the same nature when the charge of shipping and handling is now subject to be added and passed on to the buyers invoice.

How is charging a FVF on shipping earned to recognized as income for eBay? Also, how is it earned income if the seller only states shipping charges but no mention of handling charges in the auction listing.

Example: If I charge $20.00 for shipping and charge $5.00 handling the earned income amount would be $5.00 and not $25.00

[dtexley3]

To all replying, I think this is what the OP is talking about:

There is a move afoot in multiple states to declare the Fees we pay as Sellers to EBay to be taxable under the individual states sales tax laws.  So if you pay $250 in FVFs, listing fees and store fees, that amount would be subject to sales tax in the seller's state if implemented.  Essentially tack on another 1 - 2% to your fees if your state decides to go this route.

It's not just eBay trying to reach deeper into our pockets here.  As sellers we need to pay attention and be active to protest these types of money grabs by our state government  as we are with eBay.

[southern*sweet*tea]

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@dtexley3 wrote:

To all replying, I think this is what the OP is talking about:

There is a move afoot in multiple states to declare the Fees we pay as Sellers to EBay to be taxable under the individual states sales tax laws.  So if you pay $250 in FVFs, listing fees and store fees, that amount would be subject to sales tax in the seller's state if implemented.  Essentially tack on another 1 - 2% to your fees if your state decides to go this route.

It's not just eBay trying to reach deeper into our pockets here.  As sellers we need to pay attention and be active to protest these types of money grabs by our state government  as we are with eBay.

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^^THIS^^

If you live in a state that taxes SERVICES, then you would be subject to that tax. Luckily MS does not tax services, only tangible goods.

[yongscholar]

As a result of gross mismanagement coupled with pure unlimited greed, for approximately six, seven  years eBay has been siphoning away the life blood from millions of sellers on its platform. If you are lucky to make a sale these days you required to hand the multitude of it to the overlords. Pay the pass through fees to their subsidiary company Paypal  2.9% + 30cents for their bogus FVF on shipping. Now with the mandated sales tax to be implemented in almost all states.

I am sure they will snatch and scuffle another 1 - 2% Therefore, it is necessary to call out our corporate citizens.

Example: Sellers monthly invoice should show their top-line  Fuzzy FVF on shipping less the applicable deducted sales tax withheld then 10% applied to the bottom-line total. Reading the newly released Spring Seller Update and User agreement has failed to address  how sellers should anticipate or have dismissed any questions on these adjustments

Alternatively, eBay proposed to outsource the concerns to entities who allegedly share a conflict of interest.

I have no intention of absorbing any taxes on behalf of eBay"s assumed revenue. Reprisals Welcome > Thank you!