eBay fees for sales tax

[capt.john]

I just realized today that I am being charged eBay fees on Sales Tax. I see no valid reason why I should be charged fees for something I have no control over. Today I sold 4 similar items (fishing line) for exactly $50 each including the penny for shipping. Price and shipping identical, yet my eBay fees were different for each item. I can only assume the difference was due to different sales tax charged to buyers.

[wrong66]

And you just noticed this? Wow!

[mybigsale]

@farmalljr 

@capt.john 

eBays cost is probably similar to other processors that charge approximately 2-3%.

eBay has said they combined their fees to make it easier for sellers to understand. eBay has not said otherwise.

Transaction=Item+Shipping+Tax

Item=Item

Commission=10%

TransFee=2.55

OneFEE=12.55 (commission+TransFee)

Before

sellerfee=(Item*Commission)+(Transaction*TransFee)

Now (Managed payments)

sellerfee=Transaction*OneFEE

RESULT:

One fee easy for sellers to understand results in the commission being charged on Taxes and Shipping. Note: eBay did previously start charging commission on shipping (assuming all sellers are cheating) and the given rates are approximate and I there is also and extra 50cent per item eBay charge.

Correct: Commission on your item = Item * Commission% 

Now: Commission on your item = Item * Commission% + ((tax+shipping) * Commission%) 

In both cases you will also have the transaction fees - but with the new math the numbers are blurred.

In 1987 Indiana tried to pass a law making Pi =3.2 to simplify math (many were for the change to make math easier, but it didn't pass).  I was in disbelief then. I am disbelief with how eBay does their new math... I have to pay for eBay costs for processing the transaction PLUS charge me a commission on not only my item but also a commission on the Tax and the Shipping?

I don't get much support from other sellers. It just doesn't seem right when they mess with the math. eBay can do what they want - so if they decide to eliminate fractions (12.55% fee becomes 13%, $14.50 price becomes $15) to make math easier for sellers I suppose many would accept the change and adjust prices accordingly.

[mrdutch1001]

and as a longtime seller you should have known about this back when eBay had those sales taxes passing through PayPal and the fees assessed by PayPal. Now with eBay's Managed Payment system eBay is charging fees on TOTAL transaction amount which includes any sales taxes to the buyer with the fees % related to the category of the item. Sorry, but as a seller you need to keep yourself informed about what goes on, on the site on which you sell your items. There really is no excuse for sellers not to know these things...

[buyselljack2016]

As stated, other funds processors also charge on the total amount processed.

My fees are about the same withe eBay/MP as they would be with eBay/PP. PP raised fees for many back in August.

To the repeated ...............   "well eBay is taking care of collecting/remitting the sales tax  so I don't have to"  ...... posters, how many of you would be required to do that anyway??

I keep reading "eBay is doing it for me" (had at one time posted that myself), but many sellers are/would  only be responsible for sales tax remittance (just as before internet sales tax) for sales to their own state. Many would not meet the thresholds set by other states for internet sales. 

[mybigsale]

@powell-memorabilia 

Thanks I realize to many sellers it is just a numbers game.  If eBay announced a new fee based on the 1st letter of buyers state and the fees ranged from 1% to 4% sellers (including me) would run the numbers and adjust price accordingly.  I would need to add another 4% because I have no way of knowing beforehand where the potential buyer is from.

I would still support other sellers that didn't agree with this new fee or eBay charging a commission to sellers above the actual processing costs for taxes and shipping. In the end it is going to cost our buyers more...

[kensgiftshop]

@capt.john 

You didn't notice when Pay Pal charged us a fee on the sales tax?

[stainlessenginecovers]

It would be nothing for the states to revise their sales tax codes to either 'exclude' nexus and minimum thresholds and therefore make individual sellers get a SREA for every state/county and then send in reports for each county for each state. Oklahoma already did that before the Facilitator Law took effect. For those selling over $100k a year, there were many states that the 'threshold' was $10k. So, even if you didn't hit it, you would have to collect the info to see if you did; by State. 

So, the $1 extra in fees for $100 sale (average "extra fee") is really not much.

To the OP stating "having no control" over.  

Yes- you do.

Your sale caused sales tax to be collected. Your sale caused ebay to collect it, record it, and in future, report and remit it. 

It was Your Sale. 

You caused it.

[buyselljack2016]

Want to possibly save a few pennies on occasion?

Change that "penny" for shipping to a higher amount.

Back a while to eliminate eBay from popping "fast and free" on my listings I went the "one penny shipping" route to eliminate that.  I ave since switched to showing a higher (still reasonable) shipping charge.

Some states do not charge sales tax on shipping.  Not much of a  savings, but will start to add up.

[buyselljack2016]

It would be nothing for the states to revise their sales tax codes to either 'exclude' nexus and minimum thresholds and therefore make individual sellers get a SREA for every state/county and then send in reports for each county for each state

---------------------------------------------------------------------------------------

Yes they could, but as I read things back, back a while, when this internet sales tax business was brewing (post 2018 supreme court ruling) it seems that the states were writing their laws in such a way that it would not, and was not intended to, hurt small sellers, therefore the thresholds that many outside of the "marketplace facilitator" selling, do not meet.

[stainlessenginecovers]

and that is just not correct; again; see Oklahoma

States will do most anything to get extra tax dollars. After all, why not? 

[iart]

I'm glad too. But it isn't like they had a choice. They would have lost most all of their sellers if they hadn't.

[krazzykats]

I live in one of 5,  US States that has No sales tax.  No Sales Tax.  I can go to any store, buy a car, purchase online, etc., no sales tax.

Now, I pay "fees on sales tax" (+any processing), for other states.  I don't see a benefit (costs) for collecting sales tax for the state I live in, because there isn't benefit to the state I live in.  

The only advantage is that a seller I buy from does not pay the extra fees on sales tax collected, cause there isn't any collected in my state.

PURR AND THE WORLD PURRS WITH YOU.  HISS AND YOU HISS ALONE.

[mybigsale]

@capt.john 

@kensgiftshop 

A low transaction fee... not a high eBay Fee that includes low Transaction fee plus high COMMISSION fee

imagine buying a $10,000 item from PayPal and they say they are going to charge you around 3% for covering the transaction PLUS they want to earn around an extra 10% $1,000 commission on the item you are buying.

[stuff4divas]

---

@capt.john wrote:

I just realized today that I am being charged eBay fees on Sales Tax. I see no valid reason why I should be charged fees for something I have no control over. Today I sold 4 similar items (fishing line) for exactly $50 each including the penny for shipping. Price and shipping identical, yet my eBay fees were different for each item. I can only assume the difference was due to different sales tax charged to buyers.

---

So instead of being happy you made sales, you'd rather gripe about something you can't change.

You can try to find another platform to sell on that meets your every need, oh wait, that doesn't exist 😂

[umoraski]

Any money that comes into Ebay, that is handled by them has a fee - just like doing business with a bank.