03-01-2021 03:50 PM
and why am I being charged and this is added to my invoice? It is from int'l sales; I thought ebay collects all taxes and pays them? Is this something I have to pay but ebay doesn't charge buyer for?
04-18-2021 01:49 PM
@corvettestainless wrote:Tax invoice means 'Income Tax' - they assume you will use for Income Tax deduction... (translation breakdown- remember, Adyen is from another country).
Has NOTHING to do with SALES TAX.
IF you look closely at it, it is nothing but ALL THE FEES you are paying, Final Value, Listing Etc. Everything 'except' the 'Monthly Store Fee'.
@corvettestainless - this is definitely about sales tax, not income tax - though the total fees listed on this report could certainly be helpful come income tax time too.
It also has nothing to do with Adyen being in a different country.
Here's the info from eBay's help page
This report is specifically about applicable taxes which may be assessed on fees paid. This already happens to eBay sellers in the UK and other places where digital services are considered taxable and to Amazon sellers in some states as well, as referenced in my post above.
From eBay UK help page:
My bet is eBay is possibly preparing to start charging tax on fees for some US sellers as well, where it may be required, and/or they are just updating the reporting for Managed Payments to be more uniform as they roll it out to more sellers in other countries where this may be applicable.
04-18-2021 01:57 PM
@dnavintageandcollectables wrote:Mine states:
Total current invoice in USD $617.24
This is a total of all the fees I have paid so why is it called an invoice when this was paid already?
Per Investopedia:
What Is an Invoice?
An invoice is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller. If goods or services were purchased on credit, the invoice usually specifies the terms of the deal and provides information on the available methods of payment.
So according to them, an invoice is a record of a transaction, not necessarily a bill to be paid.
04-18-2021 04:48 PM - edited 04-18-2021 04:50 PM
Just add this to the incredibly bad job on roll out of this program to the user community.
If ebay had just been up front on how it was going to work and not tried to hide the info (like payment
forum until you were in the program) it might have gone over better
I cannot think of one aspect of this program they explained well or prepared the user community
for in any good way.
04-18-2021 05:28 PM
(and why am I being charged and this is added to my invoice? It is from int'l sales; I thought ebay collects all taxes and pays them? Is this something I have to pay but ebay doesn't charge buyer for?)
Now live: Changes to the eBay invoicing process
04-19-2021 12:18 AM
...just got it today...first time ever as totally different from many previous months...quick look then put away...will pull it out again beginning next year when income tax season starts...
05-03-2021 09:49 PM
I think I figured it out. Ebay used to send an invoice for all fees. Now with the managed payments, they deduct the Final Value Fees from each sale before the money is added to our Available Funds. So I am no longer paying those fees in my monthly invoice. You may see your monthly invoice is lower than normal, because it no longer includes Final Value Fees. Just the store subscription and maybe some insertion fees and return shipping costs. But the Final Value Fees are still a cost of doing business. So the Tax Invoice is a record of the Final Value Fees and maybe a few other Fees they took out before sending us the money to our Available Funds. No longer a part of the monthly invoice, but still an expense to declare for tax purposes.
Does that make sense?
05-04-2021 02:59 AM
@styrenelad wrote:I think I figured it out. Ebay used to send an invoice for all fees. Now with the managed payments, they deduct the Final Value Fees from each sale before the money is added to our Available Funds. So I am no longer paying those fees in my monthly invoice. You may see your monthly invoice is lower than normal, because it no longer includes Final Value Fees. Just the store subscription and maybe some insertion fees and return shipping costs. But the Final Value Fees are still a cost of doing business. So the Tax Invoice is a record of the Final Value Fees and maybe a few other Fees they took out before sending us the money to our Available Funds. No longer a part of the monthly invoice, but still an expense to declare for tax purposes.
Does that make sense?
The Tax Invoice is not primarily meant to be used for income taxes, though some of the information on it may be helpful for that.
The Tax Invoice is just a record of fees deducted from your Managed Payments balance and any tax you may have been assessed on those fees if you live somewhere that considers digital services taxable.
More info here:
05-25-2021 04:12 PM
Makes the most sense of any answer I've read in my hour+ of trying to figure this out. Now I just hope it's also correct. lol Thank you!!!!!
05-25-2021 05:34 PM
@civicwagonparts wrote:Just got mine today too.
Looks like a statement for your taxes, nothing to do with sales tax.
Its showing the fees you paid to eBay last month. It is not a bill. Not sure why shipping charges paid are not on there.
FYI, the FVF went up, eBay gives you 250 "free" listing every month. Well..."free" means they are now charging .1% (or more) on the FVF.
I guess monthly changes to the User Agreement were not enough, not we have instant changes with no communication.
From an accounting point of view, Paypal has you collecting the taxes from customers which means it's revenue. The invoice is to show what you remitted for taxes to deduct from your gross revenue when you calculate your net sales. I agree that it's for record keeping purposes.
C.
05-25-2021 05:52 PM
@sin-n-dex wrote:
@civicwagonparts wrote:Just got mine today too.
Looks like a statement for your taxes, nothing to do with sales tax.
Its showing the fees you paid to eBay last month. It is not a bill. Not sure why shipping charges paid are not on there.
FYI, the FVF went up, eBay gives you 250 "free" listing every month. Well..."free" means they are now charging .1% (or more) on the FVF.
I guess monthly changes to the User Agreement were not enough, not we have instant changes with no communication.From an accounting point of view, Paypal has you collecting the taxes from customers which means it's revenue. The invoice is to show what you remitted for taxes to deduct from your gross revenue when you calculate your net sales. I agree that it's for record keeping purposes.
C.
@sin-n-dex - just to avoid confusion, the Tax Invoice we are talking about has nothing to do with PayPal and nothing to do with sales taxes collected and remitted by either eBay or the seller or whether those sales taxes need to be backed out of revenue. Sales tax collected and remitted does not appear anywhere in this report.
This report is only for sellers in Managed Payments. It is very specifically a record of fees deducted from your Managed Payments balance for the services eBay provides and any tax you may have been assessed on those fees if you live somewhere that considers digital services taxable.
More info here
https://community.ebay.com/t5/Payments/Tax-Invoice-Sales-Tax-On-Fees-Where-Applicable/td-p/31795457
05-25-2021 06:20 PM
@valueaddedresource wrote:
@sin-n-dex wrote:
@civicwagonparts wrote:Just got mine today too.
Looks like a statement for your taxes, nothing to do with sales tax.
Its showing the fees you paid to eBay last month. It is not a bill. Not sure why shipping charges paid are not on there.
FYI, the FVF went up, eBay gives you 250 "free" listing every month. Well..."free" means they are now charging .1% (or more) on the FVF.
I guess monthly changes to the User Agreement were not enough, not we have instant changes with no communication.From an accounting point of view, Paypal has you collecting the taxes from customers which means it's revenue. The invoice is to show what you remitted for taxes to deduct from your gross revenue when you calculate your net sales. I agree that it's for record keeping purposes.
C.
@sin-n-dex - just to avoid confusion, the Tax Invoice we are talking about has nothing to do with PayPal and nothing to do with sales taxes collected and remitted by either eBay or the seller or whether those sales taxes need to be backed out of revenue. Sales tax collected and remitted does not appear anywhere in this report.
This report is only for sellers in Managed Payments. It is very specifically a record of fees deducted from your Managed Payments balance for the services eBay provides and any tax you may have been assessed on those fees if you live somewhere that considers digital services taxable.
More info here
https://community.ebay.com/t5/Payments/Tax-Invoice-Sales-Tax-On-Fees-Where-Applicable/td-p/31795457
I'm not in MP, so I haven't reviewed the report. My apologies.
C.