eBay

giantvinyl · ‎08-31-2017

I recently sold 14 records @ $15.00 each to a member in California. Combined shipping costs $46.16 Total invoice amount $256.16. Current amount due eBay in fees is $51.83. each $15.00 transaction has tax of $3.33 (Fees are 10% so where did the .38 cent fee come from?) 13% of 3.33 is 5 cents 3.33 + .05 = 3.38 for each record. Tax charged on top amount collected. 14 *3.38=$51.83 There is no sales tax on shipping to US from Canada. $46.16 * 13% = $6.00 eBay should not be collecting sales tax on shipping nor fees. Now here's where it gets interesting Each record sold for $15.00. Total sales tax of 13% on $210.00 (items) + 46.16 (shipping) = 256.16 * 13% = 28.03. So where did the 3.33 come from. $3.33 / 13% = 25.62. 10% of 256.16 is 25.62 So eBay is collecting fees on fees with no concept that shipments outside of Canada are not sales taxed. $256.61 /14 is 18.32 not 25.62 There each item should be 15+18.32 So bottom line on sales of $210.00 I paid $46.16 for shipping and eBay fees of $51.83 and PayPal fees of $9.79. I made 256.16 - 46.16 - 51.83 - 9.79 = 148.38 on 14 items or $10.49 fro an item that sold for 15.00 or about 66%. eBay should not be charging fees on shipping. I still pay the full amount and do not get a 10% break. a(actually 10%*13%(added Tax)+10%(bay fees.eBay is unfair in it's fee calculations and does not understand Canadian sales tax. ebay unfair shipping fees. Is it all worth it? Amazon anyone?

Anonymous · ‎08-31-2017

Hmmm...very interesting math puzzle. My understanding of the tax rule is that eBay applies HST to the fees...not to the sales. So I got my pen, paper and calculator and ran the numbers you posted.

14 records@ $15 = $210

Shipping : $46.16

Therefore...$210 x 10%= $21 and $46.16 x 10%= $4.61

$21 + $4.61= $25.61

$25.61 x13% (Ont)= $3.33

I'm not trying to stir the pot here...I just found the math puzzle interesting...I am equally concerned with the "nickel and diming" going on here on eBay. Add PayPl's fee structure and it adds up really quick! not cool...I would be good to here from fellow members and even eBay mods (aka. Tyler) to here their perspectives on this!

ypdc_dennis · ‎08-31-2017

A-river:

15% fees are charged on the total sale amount INCLUDING shipping plus fixed fees per sale.

As for GST/HST on seller fees, currently only if the seller is using the FBA warehouses in Canada. But the writing is on the wall as every couple of months amazon announces another area of the world where VAT will be collected on fees.

...

If you are registered to collect GST/HST then the taxes on eBay service fees are just another ITC to be subtracted from what you owe the government.

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momcqueen · ‎08-31-2017

You lost me about halfway through.

Is your complaint with Final Value Fees and earning less overall profit than you hoped?

Or is your complaint the sales tax being now collected on your ebay seller's FVF and other seller-related charges?

Each one of us has to set our own prices based on what amount makes it worthwhile to sell an item here. No one but you decides what amount that might be.

pierrelebel · ‎08-31-2017

"...eBay is unfair in it's fee calculations and does not understand Canadian sales tax."

eBay understands the Canadian tax system very well, so do their lawyers.

KISS - eBay charges fees (fees when listing, fees when selling, lower fees if you have a store, fees on the value of shipping in some circumstances, fees on this and that). It is important for sellers to understand how fees are calculated.

The federal government simply charges tax (GST or GST) on all fees charged. It is that simple. The government does not care if the fees are generated from blah, blah, blah or blah. They just want their 5% or 13% or whatever (depending where seller lives).

The fact an item is sold outside the country affects the tax rate charged on the item and shipping charge if you are registered with GST/HST. However, selling outside Canada does not affect the tax rate charged on fees payable to eBay. That is the law.

pjcdn2005 · ‎08-31-2017

@giantvinyl wrote:
@I recently sold 14 records @ $15.00 each to a member in California. Combined shipping costs $46.16 Total invoice amount $256.16. Current amount due eBay in fees is $51.83. each $15.00 transaction has tax of $3.33 (Fees are 10% so where did the .38 cent fee come from?) 13% of 3.33 is 5 cents 3.33 + .05 = 3.38 for each record. Tax charged on top amount collected. 14 *3.38=$51.83 There is no sales tax on shipping to US from Canada. $46.16 * 13% = $6.00 eBay should not be collecting sales tax on shipping nor fees. Now here's where it gets interesting Each record sold for $15.00. Total sales tax of 13% on $210.00 (items) + 46.16 (shipping) = 256.16 * 13% = 28.03. So where did the 3.33 come from. $3.33 / 13% = 25.62. 10% of 256.16 is 25.62 So eBay is collecting fees on fees with no concept that shipments outside of Canada are not sales taxed. $256.61 /14 is 18.32 not 25.62 There each item should be 15+18.32 So bottom line on sales of $210.00 I paid $46.16 for shipping and eBay fees of $51.83 and PayPal fees of $9.79. I made 256.16 - 46.16 - 51.83 - 9.79 = 148.38 on 14 items or $10.49 fro an item that sold for 15.00 or about 66%. eBay should not be charging fees on shipping. I still pay the full amount and do not get a 10% break. a(actually 10%*13%(added Tax)+10%(bay fees.eBay is unfair in it's fee calculations and does not understand Canadian sales tax. ebay unfair shipping fees. Is it all worth it? Amazon anyone?

Sorry but your numbers have lost me too. If your current ebay bill is $51.83 then it must include more than the fvf for those 14 items. As another poster mentioned the total should be much less than that.

Total including shipping - $256.16 x 10%fvf = $25.61

Tax on the fees- 25.60 x 13% = $3.33

Total ebay fee for those 14 items should be $28.94

If you click down on your invoice you should see exactly what the charges are for each transaction.

ypdc_dennis · ‎08-31-2017

@giantvinyl wrote:
@I recently sold 14 records @ $15.00 each ,,,
Combined shipping costs $46.16
Total invoice amount $256.16.
Current amount due eBay in fees is $51.83.

Did you click on the Fees button (the line under "Current balance" in the Account section) to see what the actual fees were for your 14 record sale?

Check to see what other fees you have. Because that total you give does not match what the fees would be for a $256.16 sale even with HST added.

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