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final value fees

Why is ebay charging final value fees on taxes and shipping

 cost for final value fee?  It should be based solely  on the price of the item sold PERIOD.

We should not be paying fees on shipping and taxes. 

Message 1 of 28
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27 REPLIES 27

Re: final value fees

Every time this comes up, I put in my .02 worth. All they had to do was make calculated shipping mandatory. Then no one would profit on shipping and they could just charge fees on the sale. I don't have a problem with fees on sales tax.  They are doing us a huge service to handle that.

Message 16 of 28
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Re: final value fees


@coolections wrote:

187th topic about this same thing. Maybe they should just post a generic locked topic at the top of the page so everyone knows the fees are based on the total amount of the transaction. It would eliminate topic 188 from starting.


agreed. 187th, your minimizing a bit. 😂

Message 17 of 28
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Re: final value fees

All the payment processors, which include Visa, Master Card, AMEX, & other charge their commission based on the grand total of the transaction which includes the price of the item + sales tax + any shipping. Plus, ebay takes the responsibility of sending the sales tax payments to the approrpriate state at the correct sales tax rate. 

 

Ebay managed payment is perffectly inline with all payment processors. 

 

Just pay the commission & move on!

 

Good luck!

Message 18 of 28
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Re: final value fees

The only problem is - this is absolutely not true.

 

Visa, Master Card, Amex charge a low processing fee for processing the transaction.

 

eBay is the only processor that mixes the low processing fee with their commission (having one fee instead of correctly charging a processing fee and then commission on what you are selling).  Result being eBay charges the low processing fee like everyone else to process the taxes and then also earns an extra high fee commission on the taxes. No one but eBay does that. It is about eBay making taxes a profit center above and beyond their cost of processing taxes.

 

 

Message 19 of 28
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Re: final value fees

I take what I want to sell to dealers and get paid and don't have to worry about this nonsense. 

Message 20 of 28
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Re: final value fees

You are right... It is what it is... 

I'm new on eBay as a seller and have made some money.

I guess I was just venting... LOL I'm a old timer myself.

Message 21 of 28
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Re: final value fees


@proficien4 wrote:

If you buy a gallon of milk at walmart for 4 dollars. They charge tax on that 4 dollars. As a seller they don't pay taxes. Just the buyer. Go figure...



In your scenario the eBay buyer and the guy buying milk are the same. They are buying a product in a jurisdiction that taxes that product. 

The eBay seller and the grocery store are the same. They will pay a processing fee to their payment processor, based on the amount the buyer pays. 

Message 22 of 28
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Re: final value fees


@winterpalace25 wrote:

Every time this comes up, I put in my .02 worth. All they had to do was make calculated shipping mandatory. Then no one would profit on shipping and they could just charge fees on the sale. I don't have a problem with fees on sales tax.  They are doing us a huge service to handle that.


What would stop sellers from listing their item for $5 and say the item ships in a 500lbs box?

She ❤︎ Her ❤︎ Hers
Message 23 of 28
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Re: final value fees

Why not... because the American constitution says it is illegal charge for tax collection. In the American constitution, the 16th amendment grants powers to collect taxes and from there creates a host of laws protecting the collection of taxes and the required business practices.

 

In short, eBay is making money (12.55%) on tax collection, which violates the American constitution. 

 

I bet the finance work for this is offshored to India or some other country, where they have never heard of the thing we call the American Constitution.  I hope eBay gets hammered by the Federal Government once they figure out eBay is breaking the law. 

Message 24 of 28
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Re: final value fees

State sales taxes have nothing to do with federal income taxes or the 16th amendment.

 

There is nothing in the constitution or the law that prevents a company from setting up a system that allows sellers to voluntarily enter into an agreement that involves eBay charging the seller a fee on a total payment which includes a sales tax amount. As others have repeatedly pointed out, PayPal also charges sellers a fee based on the total transaction amount including sales tax, as do credit card payment processors for merchants.

 

If you actually think eBay is violating the law by charging sellers a fee based on a transaction total, then you should have avoided entering into an agreement that requires you to pay such fees by using eBay to sell.

Message 25 of 28
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Re: final value fees

Why not... because the American constitution says it is illegal charge for tax collection. In the American constitution, the 16th amendment grants powers to collect taxes and from there creates a host of laws protecting the collection of taxes and the required business practices.

Nope.  No, sir.  That statement is not correct.  


I keep a copy of The Constitution of the United States of America at my desk.  It's really a very short document.  

Here is the entirety of Amendment XVI.*  

"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.  

*The Sixteenth Amendment was ratified February 3, 1913."

It's important to read and understand every word.  Here is a series of three words within the 16th Amendment that specify what it is about and what it means:  Taxes.  On.  Incomes. 
Those three sequential words are consequential.  
The 16th Amendment established the federal income tax. 

The 16th Amendment is not about taxes on sales, which are taxes on the transactions of exchanging money for goods or services, whether that transaction takes place in Walmart or on the internet.  Sales taxes are imposed, collected, and spent by the "several States", anyway.  

Message 26 of 28
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Re: final value fees

I can understand the FVF on shipping payment but on taxes. This is something we as sellers don't touch. If the total sale is 15.10 and .90 added for the state tax. 12.0% is based on the whole 16.00 but then the fees are deducted from the 15.10. So, in this example you pay an extra .11 on top of the 1.81 and the .30 per order.

If you have a store subscription you already pay 60.00 monthly. That fee should be waived or when you reach a certain number of sales in the month, then charge. If I sell 30 items in the month and average .10 tax fee, that's 3.00 a month. If I am a bigger store and sell 1000 items that's 100.00 a month. 

That's not a little deal.

Message 27 of 28
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Re: final value fees

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.

Message 28 of 28
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