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Will Ebay sellers now be paying final value fees on collected taxes?
Coinstartled
Posts: 10,135 ✭✭✭✭✭
Perhaps Paypal fees as well?
""In 2018, PayPal and eBay worked together to implement a solution to comply with laws that require eBay to collect and remit tax on applicable transactions. Those transactions that require eBay to collect tax are currently divided into two separate charges - one for the item purchased and another for the associated tax.
Effective November 2019, PayPal and eBay will change the way these transactions are processed and how taxes are collected and remitted.
For transactions that require eBay to collect tax from buyers, the tax amount will be included in the gross purchase amount to be processed. Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.""
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On coin sales of course, to keep this forum relevant.
Edit: the info below is about taxes on the fees a seller is charged not fees on the taxes collected based on a sale.
This article says that Amazon has started charging tax for seller fees.
https://www.ecommercebytes.com/C/blog/blog.pl?/pl/2019/4/1555047168.html
Here is the eBay info:
“Tax on eBay fees
Depending on the seller’s location, Value Added Tax (VAT), Goods and Services Tax (GST), or similar consumption tax may apply to eBay selling fees.”
https://www.ebay.com/help/policies/selling-policies/tax-policy?id=4348
Thanks U1chicago, but that is a different assessment. If I understand the Email I received, the $1000 coin sale would now be the say $1080 coin sale when taxes were added and Ebay and Paypal fees would now be on the higher taxed amount.
I wish EOC would show up so I could see how this is a good thing.
I assume PayPal fees will apply as it is part of the payment they are processing. It's unclear about the eBay fees.
It doesn't really matter. It is what it is.
Why not?
Takes a court action to start and stop taxes. Congress just messes it up.
Ultimately the buyer pays, if it’s incorporated into sellers’ sell price.
Seen the price of milk lately? Too bad it doesn’t burn as fuel in cars. Except the gas it makes in my stomach.
I have not seen much if any impact on me yet. But I don’t doubt they could find some way hit me.
Yes I realized it was different and added an edited section on my first post.
If the fee applies to the taxed portion and then one get taxed on the overall seller fee, we could be looking at plenty of added expenses.
I won't buy a coin under $1500 again.
@Coinstartled I found this:
“When your listing ends, you'll be charged a final value fee. The final value fee is based on the item's total cost to the buyer. The item's total cost to the buyer includes item price and shipping cost plus any other costs to the buyer (less any sales tax).”
https://www.ebay.com/pages/help/sell/contextual/final-value-fees.html
So if they stick to that policy, there should be no final value fee on the sales tax portion.
As far as PayPal, I’m not sure.
You have a superb business model that is not affected by added costs of doing business.
I didn't say that. But that is hardly a deal breaker. So I'm going to lose 3% of 7%(average), that's 0.21% to PayPal. If eBay charges FVF on the tax, then that's 5.6% of 7% or 0.4%. Am I going to go out of business over a total of 0.6%? What do you want me to do, boycott?
I would also point out that you are making this an eBay issue when it is really a state sales tax issue. I can open my own website, but I just lose the eyeballs and maybe still have to pay the tax and associated fees.
https://cardfellow.com/blog/dont-lose-money-from-processing-fees-sales-tax/
So, Credit cards already charge processing fees on sales tax, so this is nothing new with PayPal. I was paying it all along on NY State residents, so I've just broadened the scope. I should go back and see if I was paying FVF on NY State resident's sales tax.
CURRENT eBay policy appears to NOT charge FVF on sales tax. If you have information that this will be changing, feel free to provide it.
https://ebay.com/pages/help/sell/contextual/final-value-fees.html
I just sold a coin that has sales tax showing on the invoice. Ebay didn't charge a FVF on the $9 tax. I'm waiting for the buyer to pay so I can see if PayPal charges a fee on the tax.
We all know it's just a matter of time before they start charging their fees on the taxes.
Just like it's only a matter of time before Paypal stops refunding their fees on returned items.
I really wonder if this is going to steer people back to coins shows! Overall between taxes and fees this could amount to an overall average of a 10% increase in costs between buyers and sellers.
LOL! You know the story of dropping a frog into a pot of water slowly brought to a boil. A tenth here and a tenth there. When's it going to stop? When people wake up! Time for another Tea Party against the state governments, ebay, and Paypal!
Forget the revolt, I'll settle for a bit of competition. Ebay fee has risen from 2.5% to 10% and no one steps in to compete?
The frog is long gone.
People are trying but not many people go usacoinbook.com
I have not seen it yet.
What I do see, in a similar manner, is Global Shipping Costs. If I sell an item for $400, with a $60 shipping cost (I sell big and or heavy items), and it is purchased by someone in Poland, I see $460 less paypal on the $460 in my account. I can also see, when I print out a label, that the total cost to the buyer was $400 +$60 + $142 (being the shipping from the Global center to to the door step in Poland). I am not charged any costs associated with ebay collecting an additional charge for the shipping, so I PRESUME it will be the same.
When were ebay fees 2.5%?
Collector, occasional seller
That was my first fee on on amounts over $25 when I began selling in 2002 or so ($1% on amounts over $1000.) It went to 2.75% and i figured 3% was there goal. I was off by a factor of 3.
Frog legs anyone?
If Paypal is correct, Ebay will consider the tax to be a portion of the sale (recall Ebay's change to charging a FVF on shipping.)
Ebay only requires 14 days for a change. Could be wrong but i suspect that Ebay will be charging a fee on the tax.
"For transactions that require eBay to collect tax from buyers, the tax amount will be included in the gross purchase amount to be processed."
States. Ebay and paypal have nothing to do with it, really
Only if they change policy. I have NOT been paying fees on taxes collected by ME because ebay excludes them in the FVF calculation. The new policy for other states treats the sales exactly like the old policy did for in state sales.
Please don't make things up without justification. For 15 years, my NY state sales showed a total purchase price that included sales tax. For 15 years, I paid PayPal fees on the tax but no ebay fees.
The OP title was in question form, not a statement. The wording from paypal indicates that taxes will now be bundled with the previously separate merchandise invoice amount.
The once simple Ebay/Paypal platform has become a guessing game. It is plausible and i believe likely that Ebay will soon be charging an FVF on taxes. Company rarely misses a chance to up the fees.
On a $40 postcard of an old Dutch windmill that was found in a dumpster, the extra cost would admittedly be insignificant.
Selling a PCGS graded Saint Gauden $20 on the site, an extra $7 or $8 on each sale is meaningful.
If eBay doesn't work well for selling PCGS graded Saint Gauden $20s, then sell them somewhere else.
there are a few states that are currently paying a 10 percent sales tax on e bay. these people paying that high of a tax will be very lucky to break even once it's time to sell, once you factor in the seller fees, paypal fees, shipping, insurance, shipping supplies, gas to go to the post office, and so on
Do you not think that there are 10,000 hungry lawyers constantly watching eBay for the slightest slip-up on what might be legal and what might not be legal?
Just because someone has a crummy business model that they won't modify... they blame everybody and everything else...
Again, why didn't they take that opportunity for the last 15 years? This change is actually a reversion to the way things always were before ebay started paying the tax for me. All taxable sales ALWAYS had a total amount that INCLUDED SALES TAX and they NEVER charged FVF on the sales tax.
I'm not a fan of taxes, but this is a State tax bureau created issue not an ebay created issue.
California and New Jersey is were I shipped to the most. that is no longer the case, Arizona is now number one, no sales tax there
Try to bundle smaller coins together to add the total up to $1500, if your state law taxes sales under $1500.
This honestly just seems like a mean-spirited attempt to punish the small-time collector. How evil!
Seems like the government is hindering the ability to run a small business.
Ridiculous!
That works,too. Problem being finding more than one tolerable coin per seller.
If you shop at WalMart and buy a $100 item and pay ST of 7% here and put the $107 on your CC then I assume the state gets the full $7 and and WM eats the cc fee on the $7 . Should they charge that to the customer?
While the fee on shipping is a nuisance for someone like myself who charges a nominal amount, the goal of that FVF (and even as a cynic, I believe it) was to stop people from selling items at low prices with exorbitant shipping costs because the shipping didn’t have a fee. By charging the fee, unreasonable shipping in exchange for low item prices doesn’t have any real merit.
I could see a payday fee on tax as they are still paying to process that amount, but other than a money grab, eBay has no reason to touch the sales tax beyond collecting it.
They aren't really trying to hinder a small business, as most of the states have small business exemptions. They are, however, making it harder to run a small business on eBay or Amazon.
My buyer paid this morning and I was not charged Paypal fees on the taxes.
for now!
Dude, I was out having the best day tuna fishing of my life instead of worrying about a non-issue on eBay, enjoy
I honestly don't believe that for a minute. If the goal was to prevent inflated shipping charges to manipulate final value fees then that could be resolved successfully in a few lines of computer code. EBay already has code to estimate shipping charges, and the insurance rates from USPS wouldn't be hard to add. If that was eBay's motive, it would be easy enough to calculate a standard reasonable shipping fee and only charge final value fees on sums greater than that number. It's an excuse to nickel and dime sellers.
No, I believe it. It used to be a huge problem. You would see all kinds of listings that were $1 no reserve auctions with $99 shipping. Back then, eBay shipping labels didn't exist so they weren't estimating shipping charges or doing anything with shipping at all. They made that change a LONG TIME ago.
Yes, the excessive shipping charge dodge used to exist on eBay. It was not used by everybody, but it was common enough.
please someone clarify:
is this ne tax/fee a sales tax on the goods which are the subject sale?
OR is this new tax ONLY on the fees ebay charges by providing their facilities?
and, where does the $$$ go immediately after this tax is collected? (straight to the taxing authority? Or to Feebays operating capital coffers until tax payments to the taxing Authority is due????
In Britain and some other European countries Tax is payable on the service fees charged for the services a auctioneer provides.(even if the item is exported, as the service is provided with the respective country) Its the law there.
Ya know I have been thinking about this. If anyone should pay the fees associated with collecting tax it should be the states who are receiving the tax. Maybe they are paying the fees. I find it hard to believe ebay and paypal will swallow these fees as it will add up to a pretty tidy sum.
Wish ebay would get the exempt items correct. Just wasted a couple hours applying for a refund of sales tax on a recent purchase. Just hope the WA Dept. of Revenue cooperates.
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
In the end, we consumers pay. Whether buying or selling, those in "the market" must pay to play. (Or work...depending on how each sees it).
Higher costs are inevitable.
``https://ebay.us/m/KxolR5
It's the regular old sales tax on goods sold.