eBay's collection of Final Value Fees aren't fair as they deduct them from the total minus taxes

[lightlily_arts]

I get it that most buyers now have to pay state taxes on their purchases.  That's fine with me.  It's how they are collected that I take issue with.  When eBay adds the state taxes to the purchase they deduct their final value fees based on the total.  Item Price+ Shipping+Taxes.  But they only deduct those fees from the total minus the state taxes.  From my perspective if they are going to charge the sellers fees based on the total mount including taxes then why aren't they deducting that same amount from the total including taxes.  From my perspective just another ploy to steal from sellers.

[hurryagain]

YUP!

I just look at eBay's fees as 12.55% a straight up 13% of my total sales to cover that part in my mind so I don't get too worked up over it.

[alcoforever]

It doesn't matter how ebay deducts their FVF.   The final amount comes out the same either way.  Your payout will be less the taxes and the FVF so it doesn't matter which is deducted first.

[releasethekraken_1]

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@lightlily_arts wrote:

I get it that most buyers now have to pay state taxes on their purchases.  That's fine with me.  It's how they are collected that I take issue with.  When eBay adds the state taxes to the purchase they deduct their final value fees based on the total.  Item Price+ Shipping+Taxes.  But they only deduct those fees from the total minus the state taxes.  From my perspective if they are going to charge the sellers fees based on the total mount including taxes then why aren't they deducting that same amount from the total including taxes.  From my perspective just another ploy to steal from sellers.

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Maybe I’m misunderstanding your point, but what difference would it make? The fee gets taken out, and the tax goes to the buyers state. You can subtract them in any order you want, and the result is the same.

[hurryagain]

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@releasethekraken_1 wrote:

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@lightlily_arts wrote:

I get it that most buyers now have to pay state taxes on their purchases.  That's fine with me.  It's how they are collected that I take issue with.  When eBay adds the state taxes to the purchase they deduct their final value fees based on the total.  Item Price+ Shipping+Taxes.  But they only deduct those fees from the total minus the state taxes.  From my perspective if they are going to charge the sellers fees based on the total mount including taxes then why aren't they deducting that same amount from the total including taxes.  From my perspective just another ploy to steal from sellers.

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Maybe I’m misunderstanding your point, but what difference would it make? The fee gets taken out, and the tax goes to the buyers state. You can subtract them in any order you want, and the result is the same.

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Not exactly.

Say the sales tax collected on an item was $2.00.  If eBay collects it's 12.55% on your gross sales - BEFORE that tax gets taken out then you will be paying  $0.251 cents more in eBay's fees because that 12.55% fee is tacked onto that sales tax ($2.00). 

@releasethekraken_1 

[alcoforever]

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@hurryagain wrote:

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@releasethekraken_1 wrote:

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@lightlily_arts wrote:

I get it that most buyers now have to pay state taxes on their purchases.  That's fine with me.  It's how they are collected that I take issue with.  When eBay adds the state taxes to the purchase they deduct their final value fees based on the total.  Item Price+ Shipping+Taxes.  But they only deduct those fees from the total minus the state taxes.  From my perspective if they are going to charge the sellers fees based on the total mount including taxes then why aren't they deducting that same amount from the total including taxes.  From my perspective just another ploy to steal from sellers.

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Maybe I’m misunderstanding your point, but what difference would it make? The fee gets taken out, and the tax goes to the buyers state. You can subtract them in any order you want, and the result is the same.

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Not exactly.

Say the sales tax collected on an item was $2.00.  If eBay collects it's 12.55% on your gross sales - BEFORE that tax gets taken out then you will be paying  $0.251 cents more in eBay's fees because that 12.55% fee is tacked onto that sales tax ($2.00). 

@releasethekraken_1 

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Your complaint is different from the OP's.   OP wasn't complaining about FVF on tax, just the order of deduction of tax vs. FVF.

You are complaining about FVF on the tax.  And, yes, no FVF on the tax would make a difference.   But ebay will not relent on the FVF on the tax so savvy sellers have adjusted their business plan to account for that.

[releasethekraken_1]

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@alcoforever wrote:

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@hurryagain wrote:

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@releasethekraken_1 wrote:

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@lightlily_arts wrote:

I get it that most buyers now have to pay state taxes on their purchases.  That's fine with me.  It's how they are collected that I take issue with.  When eBay adds the state taxes to the purchase they deduct their final value fees based on the total.  Item Price+ Shipping+Taxes.  But they only deduct those fees from the total minus the state taxes.  From my perspective if they are going to charge the sellers fees based on the total mount including taxes then why aren't they deducting that same amount from the total including taxes.  From my perspective just another ploy to steal from sellers.

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Maybe I’m misunderstanding your point, but what difference would it make? The fee gets taken out, and the tax goes to the buyers state. You can subtract them in any order you want, and the result is the same.

---

Not exactly.

Say the sales tax collected on an item was $2.00.  If eBay collects it's 12.55% on your gross sales - BEFORE that tax gets taken out then you will be paying  $0.251 cents more in eBay's fees because that 12.55% fee is tacked onto that sales tax ($2.00). 

@releasethekraken_1 

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Your complaint is different from the OP's.   OP wasn't complaining about FVF on tax, just the order of deduction of tax vs. FVF.

You are complaining about FVF on the tax.  And, yes, no FVF on the tax would make a difference.   But ebay will not relent on the FVF on the tax so savvy sellers have adjusted their business plan to account for that.

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Exactly. I don’t know if the OP doesn’t understand the arithmetic, or if they think they should be allowed to keep the tax. Without more info from the OP, it just doesn’t make sense.

[lightlily_arts]

That is simply not true when you do the math.  Apparently it seems that most of you haven't done the math or you wouldn't claim that it makes no difference.

For example:

Total of sale with taxes included 39.89  + 1.44= 41.33

If eBay subtracted the (FVF) from the actual total of $41.33-  $5.14= $36.19

However, eBay subtracts the final value fees from the total without the state taxes

$39.89-5.14=34.75

The difference between the two methods is $1.44.  I already paid eBay a final value fee for the privilege of processing the state taxes for me.

That means I got $1.44 less with their accounting practices.  I don't see why I should be charged final value fees on the grand total and then they deduct their fees completely from my portion of the sale.

[lightlily_arts]

You haven't done the math and the payout isn't the same

[releasethekraken_1]

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@lightlily_arts wrote:

That is simply not true when you do the math.  Apparently it seems that most of you haven't done the math or you wouldn't claim that it makes no difference.

For example:

Total of sale with taxes included 39.89  + 1.44= 41.33

If eBay subtracted the (FVF) from the actual total of $41.33-  $5.14= $36.19

However, eBay subtracts the final value fees from the total without the state taxes

$39.89-5.14=34.75

The difference between the two methods is $1.44.  I already paid eBay a final value fee for the privilege of processing the state taxes for me.

That means I got $1.44 less with their accounting practices.  I don't see why I should be charged final value fees on the grand total and then they deduct their fees completely from my portion of the sale.

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This is bizarre. eBay collects the state tax and sends it to the state. That $1.44 isn’t yours. Why do you think you’re entitled to keep it?

[fern*wood]

The math is the same either way.  The full tax must be paid to the states, so it won't matter what order it is withdrawn from your total.   Do it on paper and you will see.

[fern*wood]

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@lightlily_arts wrote:

That is simply not true when you do the math.  Apparently it seems that most of you haven't done the math or you wouldn't claim that it makes no difference.

For example:

Total of sale with taxes included 39.89  + 1.44= 41.33

If eBay subtracted the (FVF) from the actual total of $41.33-  $5.14= $36.19

However, eBay subtracts the final value fees from the total without the state taxes

$39.89-5.14=34.75

The difference between the two methods is $1.44.  I already paid eBay a final value fee for the privilege of processing the state taxes for me.

That means I got $1.44 less with their accounting practices.  I don't see why I should be charged final value fees on the grand total and then they deduct their fees completely from my portion of the sale.

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Then that $1.44 gets sent to the state to pay the tax and your remaining payout is exactly the same either way.  You just left out the final step in your process.

[releasethekraken_1]

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@fern*wood wrote:

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@lightlily_arts wrote:

That is simply not true when you do the math.  Apparently it seems that most of you haven't done the math or you wouldn't claim that it makes no difference.

For example:

Total of sale with taxes included 39.89  + 1.44= 41.33

If eBay subtracted the (FVF) from the actual total of $41.33-  $5.14= $36.19

However, eBay subtracts the final value fees from the total without the state taxes

$39.89-5.14=34.75

The difference between the two methods is $1.44.  I already paid eBay a final value fee for the privilege of processing the state taxes for me.

That means I got $1.44 less with their accounting practices.  I don't see why I should be charged final value fees on the grand total and then they deduct their fees completely from my portion of the sale.

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Then that $1.44 gets sent to the state to pay the tax and your remaining money is exactly the same either way.

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Either the OP thinks

$41.33 - $5.14 - $1.44

is not the same as 

$41.33 - $1.44 - $5.14

or they think they’re entitled to keep the sales tax. Either way, it’s pretty strange.

[gjs_16]

Not to spoil the party but I see certain sellers complaining about these issues when it matters not.

Eaby is a business, just like yours it can not survive without a certain amount of income.

So...

Whether they collect FVF on tax or not, either way they are going to have to collect that revenue so if they don't collect it on the tax they will simply charge it elsewhere because one way or another eaby is going to have to collect that money or they can not survive long term.

One way or another, if enough sellers complain maybe eaby will relent the FVF on the tax...

But guess what, they'll just levy another fee somewhere, somehow.

It won't solve the "problem."

What will solve the problem, is pass the cost onto the buyer.

If you haven't done so you're only hurting yourself and other sellers by lowballing.

The longer you resist raising prices, the harder you make it on yourself and others.

So first, read up on the agreement to ensure you are well informed of all fees.

Then charge enough for your items to cover all costs.

[stainlessenginecovers]

The reality is it costs sellers $1 for a $100 sale to have FVF's charged on the tax collected. 

The USSC decision to allow States to force Facilitating and Large Company Websites to collect and remit sales tax could've easily been passed on to ANY Seller. 'Nexus' minimums can easily be changed from needing $10,000 or $100,000 in sales in each and every State, to $100 or $1000 (See Oklahoma)  (and they will, since it won't hurt a thing but give them more Tax $$). So the 'nexus' won't cover small sellers any longer if this facilitating system were not in place. 

There are 3600 counties in the Country. Most charge tax and is being collected by Ebay. Quarterly Tax Reports and Remittance then has to be performed. That is about 14,000 reports per year. 

Bottom line- Be Happy to pay $1 for every $100 in Sales.