eBay

murik-store · ‎12-05-2023

I don't know if this issue has came up already, but I just noticed that eBay is charging me fees from the sales tax they are charging the buyer. Let's say I sold an item for $100 and charged $10 for shipping. The buyer pays $110 to me and let's say another $10 in taxes that eBay collects.

However, they are charging their fees from $120 - in other words, they take some of my money from the tax they are collecting.

Is it even legal?

monica-sells · ‎12-05-2023

It has been discussed ad-nauseum

just stand by for the posse....

lonebuck-books · ‎12-05-2023

eBay has been doing this from the beginning. The fee is based on the total transaction, not just the sale amount. Yes it is legal. Consider the fee paid on the sales tax the cost you pay for eBay doing all of the legal reporting and remitting to all of the required tax authorities instead of you having to do it. I've been selling since 2008 and for many of those years I had to do all of the sales tax work. The pittance that I pay in this fee for eBay to take all of that work (and potential audit risks) is the best bargain in existence in my opinion.

kensgiftshop · ‎12-05-2023

Yes it's legal.

Their fees are based on the total amount the buyer pays.

It's been brought up probably 1000 times.

Have a great day.

12345jamesstamps · ‎12-05-2023

And you just discovered it?......Nothing new.

And you know about the extra International Fee even if an item is shipping to a USA address but the buyer is using a credit card from another country...LOL

stainlessenginecovers · ‎12-05-2023

Posse here....

Been going on since the US Supreme Court allowed States to Mandate 3rd Party Selling Platforms to 'collect' state tax.

So, there are 3600+ counties in the USA; and each one can charge a 'different' percentage; along with Each State allows tax to be charged on various things.

So, eBay had to hire a company to do these reports to the 45 States that Collect Sales Tax (and mandated Ebay to do such) and differentiate the differences of counties, 4 times...let me repeat, 4 TIMES a year (quarterly) so that is about 14,000 Reports, and then 'remit' those tax $$.

That is NOT free.

So, ebay forwards that onto to sellers.

Therefore, it is what it is.

lakefor94 · ‎12-05-2023

@kensgiftshop wrote:
Yes it's legal.
Their fees are based on the total amount the buyer pays.
It's been brought up probably 1000 times.

Actually closer to 10,000 times 😉

Posting ID

hartungcards · ‎12-05-2023

I can't recall this issue ever being brought up here before, so thanks for bringing this to everyone's attention. Maybe if we all get together and form a union, we can get this illegality reversed.

4pawsup* · ‎12-05-2023

So nice to see your in the holiday spirit. Thank you and Merry Christmas only 20 days until Santa.

doc-holmes · ‎12-05-2023

@hartungcards wrote:
I can't recall this issue ever being brought up here before, so thanks for bringing this to everyone's attention. Maybe if we all get together and form a union, we can get this illegality reversed.

A high-class action "suite?"

reallynicestamps · ‎12-05-2023

We got our first merchant credit card account around 1980. Even then we were charged fees by the cc company on the entire payment, including provincial and,soon after, federal sales taxes. If the customer was also paying for shipping* we were charged fees on that too.

Fees were not charged by the credit card company on out of province sales taxes, mostly because it would be onerous for a small company. Companies with outlets in many provinces, like Sears Canada, were charged fees on taxes for all those buyers, at a guess because they were more capable of isolating them.

The USA started to require online venues to charge and remit those taxes about five years ago and Canada followed suit about two years ago. Sellers are also charged fees on VAT paid by Australian, UK, and European Union buyers.

*We had a B&M store but also a catalogued auction which was advertised world wide. We actually had an online auction before eBay existed.

nenu-5410 · ‎12-05-2023

@murik-store wrote:
However, they are charging their fees from $120 - in other words, they take some of my money from the tax they are collecting.

Is it even legal?

The sales tax @murik-store is included in the purchases on my credit card. But I get cash back rewards.

They give back some of my money from the sales tax they are collecting!

Is it even legal?

Or is it just that fees (and rewards) are calculated on the total purchase -- item, shipping, tax -- combined.