eBay

shayeshye · ‎09-12-2022

Charging taxes on used items in Canada when tax was already charged the first time I bought it. Then charging me a service fee for taxes they are collecting (not taxes I’m collecting on an item to use with my personal HST number, since taxes shouldn’t be charged on used personal property items), I pay for shipping through eBay which was not a deal and still I am charged a service fee on the proportionate share that they know was spent using their service for actual shipping fees.

This is a scam. I would make just as much money at 20% (wish it was 15%) on Poshmark and they have a better interface and cheaper shipping for my buyers.

Item + shipping from buyer $135
Service charges charged on $151 (hst incl)
Then they deduct shipping I bought through the site and their fees but I’m charged service fees on $34 of shipping and taxes?????
Didn’t even make $100 on item worth more because of all the scam HIDDEN fees and corrupt practices.

If I’m buying shipping from them you would think they’d deduct the cost prior to a service fee as I’m not getting that money, service fees on HST??? SCAM

brettjet38 · ‎09-12-2022

Thank your elected officials the ones you voted into power, this has nothing to do with eBay...

...And you are incorrect, USED goods are taxable, ask your account.

mrdutch1001 · ‎09-12-2022

hmm, perhaps you need to update thyself on Poshmark's fees:

"Poshmark's commission is 20%. All orders include a GST/HST on the Poshmark fee that is deducted from the seller's earnings."

For all sales under C$20, Poshmark takes a flat commission of C$3.95.
For sales of C$20 or more, you keep 80% of your sale and Poshmark's commission is 20%.
There is an additional GST/HST on the Poshmark fee that is paid for by the seller.
The GST/HST rate on the Poshmark fee is dependent on the seller’s Province."

How does that make Poshmark's fees better than eBay??

marnotom! · ‎09-12-2022

Ack. For a ten dollar sale, that would make Poshmark's fees almost 25%.

marnotom! · ‎09-12-2022

Used or new, items are still subject to sales tax charges. Cars are a good example of this.

Online marketplaces such as eBay and Poshmark have been required to charge, collect and remit sales taxes on items sold on their sites since July 2021, but they had a year to comply with this new legislation.

Retailers pay tax on the brand new items they purchase for their stock. The difference is that if they're registered to collect GST/HST, they can get an "input tax credit" for the tax they paid, in effect leaving the buyer to foot the tax charge solo.

Poshmark's commission of 20% is probably their way of dealing with the issue of fees being charged on the tax without it looking as though they're charging their fees on the tax. It's best to see if the total charged in fees makes sense as well as the percentage.

femmefan1946 · ‎09-13-2022

Managed Payments uses the same Standard Practice as any other payment processor- charging fees on the whole payment they handle rather than breaking it down into components.

Which is logical, if annoying.

Part of the processing is sending the parts to the appropriate destination. Selling price to the seller, shipping cost to the seller and/or the shipper, taxes to the revenuers*, and a 30c non-refundable service fee to eBay.

We got our first merchant credit card account circa 1980** and were paying fees to the processor, Moneris, which included fees on Ontario sales tax even then.

As stamp dealers, almost all our stock was used goods. We paid appropriate sales taxes when we bought, and had appropriate "input sales credits". And our customers paid sales taxes when they bought from us.

*With the introduction of Internet (state/provincial/national) Sales Taxes, there are over 50 destinations these may go to between nearly 48 US states, Canada's 13 provinces and territories, the UK, the EU, and Australia. And that doesn't take in New York City's sales tax or various other county and city taxes in the USA.

**Remember "Will that be cash or Chargex?"