Cash on pick up transations.

For anyone interested here is the info if you are dealing with pick ups and your customer pays cash.

 

If the payment is cash on pickup, then the marketplace (eBay) is not facilitating the payment. They are not required to collect sales tax if they did not facilitate the payment as well as the transaction.

 

From dot com:

If you're registered to collect sales tax in your state(province), I would assume that you should collect and remit it.  However, if you're not registered and authorized to collect it, the buyer would in most states be required to pay it in the form of use tax directly to the state.

 

Basically, it would be just like the buyer purchasing from a B&M store.

 

It was challenging finding anything in ebay help on the subject. In attempting to send an invoice the tax gets added automagically because system assumes payment will by default paid through MP. Not a big deal on small amounts when it comes to fvf's. Marking my transaction paid and crossing fingers.

 

-Lotz

 

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Cash on pick up transations.

To protect both buyer and seller, eBay can provide a QR code as "proof of purchase" when payment is made in cash, or by any other system of payment.

 

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Cash on pick up transations.


@reallynicestamps wrote:

To protect both buyer and seller, eBay can provide a QR code as "proof of purchase" when payment is made in cash, or by any other system of payment.

 


I've had cash payments in the past. Most routinely pay via paypal. Then done like dinner. New customer is fine with cash on the barrelhead. And I've never had proof of purchase issues...knock on wood. Besides...No cell phone. Yet I am still able to mostly live and get by.

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Cash on pick up transations.

jtg204
Community Member

Is there any way to actually do a 'cash on pickup' for local buyers? (Manitoba)

 

When I try to checkout on my own item from another account, and I believe I have all the addresses setup to see what the steps would be for a cash on pickup, I get this message on desktop:

 

cashonpickup.JPG

 

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Cash on pick up transations.


@jtg204 wrote:

Is there any way to actually do a 'cash on pickup' for local buyers? (Manitoba)

 

When I try to checkout on my own item from another account, and I believe I have all the addresses setup to see what the steps would be for a cash on pickup, I get this message on desktop:

 

cashonpickup.JPG

 


@jtg204 

Here is screenshot from a recently created listing. The tax is set up as per link below screenshot.

 

lotzofuniquegoodies_0-1754803683191.png

Here it is from the created listing.

lotzofuniquegoodies_1-1754803746607.png

It could be blocking you out because somehow it may know the accounts are connected. From my searches in help there is nothing I can find about sellers needing to collect the tax. I only know if they pay with a payment method eBay AUTOMATICALLY collects applicable tax.

 

As a random observation, when you create some listings you can add a handling charge for cash pick ups. For other listings the option is not available. Again, no explanation in eBay help on this. 

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Cash on pick up transations.

marnotom!
Community Member

Could it work differently for you, @lotzofuniquegoodies, because you're in Alberta which has no provincial sales tax?  The fact that Manitoba has RST as well as GST may be what's tripping up @jtg204.

 

Also, this thread is from last year and things may have changed a bit since then.

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Cash on pick up transations.


@marnotom! wrote:

Could it work differently for you, @lotzofuniquegoodies, because you're in Alberta which has no provincial sales tax?  The fact that Manitoba has RST as well as GST may be what's tripping up @jtg204.

 

Also, this thread is from last year and things may have changed a bit since then.


@marnotom! 

@jtg204 

As far as I know it hasn't changed. eBay just doesn't have a clear explanation in help on the subject. According to the the bonus link attached above regarding the ebay display, you have to be set up to collect tax. Because eBay is doing it for us should we really be collecting it on our own?

 

From my previous not that many months ago I believe we determined that eBay charged me for the AB recycling fee. Only problem being it did not show up until the customer paid and I noted it in eBay. After the buyer has left the building next to impossible to collect. It wasn't a large amount so not a big deal. In other situations it may be.

 

Important to consider that in the past the only sellers that collected tax were the ones registered to do so. Because of my volume I never did. I often had 3 or 4 sales (pre MP) where it was cash at the door. I never worried about it. (Personally I have the impression may have modified their procedure but never advised buyers. That is just conjecture on my part.)

 

PS. If you can locate I clearer explanation in eBay help, happy to peruse. I spoke to eBay in passing on this and even they didn't have a clear explanation on the concept  which came with the token "we will get back to you" and not doing so. It could also be directly tied to FVF's and the total ebay chooses to use on CASH on BARRELHEAD transactions and wanting their cut. 

 

As a side when you create a listing and eBay sends the email confirming this is what the title includes.

 

lotzofuniquegoodies_0-1754807390438.png

 

Which opens to this after the listing specifics:

lotzofuniquegoodies_1-1754807529761.png

Zippo is noted about being responsible for collecting tax from the buyer. 

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Cash on pick up transations.

marnotom!
Community Member

Now are those screenshots from the .com site or the .ca site, @lotzofuniquegoodies?

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Cash on pick up transations.

jtg204
Community Member

@marnotom! is probably correct, so I can't use it but sellers in no-tax locations can.

 

I'm using Business Policies, so the Cash on pickup option is in a payment policy instead of per-listing, and then I select that policy in a listing.  The tax tables, don't seem to accept 0% and reverts to being not set after saving '0'. 

 

When enabled, I see the option for cash on pickup on the listing page too, but when going to checkout it's not selectable, because ebay collects tax.  

 

cashonpickup2.JPG

 

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Cash on pick up transations.

@marnotom! The screenshots above are from the emails I get witheach eBay listing posted via gmail. 99% of my listings are created on ca. You only see the first 15 characters of our listings. Personally, that bonus dribble I have always considered  being spam from eBay and totally useless. 

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Cash on pick up transations.


@jtg204 wrote:

@marnotom! is probably correct, so I can't use it but sellers in no-tax locations can.

 

I'm using Business Policies, so the Cash on pickup option is in a payment policy instead of per-listing, and then I select that policy in a listing.  The tax tables, don't seem to accept 0% and reverts to being not set after saving '0'. 

 

When enabled, I see the option for cash on pickup on the listing page too, but when going to checkout it's not selectable, because ebay collects tax.  

 

cashonpickup2.JPG

 


@jtg204 

It appears now that tax is being collected on even cash sales. That tax comes out of anysellers profits on the and is used in calculating the FVF's.  In trying several ways there is no work around. See screenshot. 

 

lotzofuniquegoodies_0-1755226260269.png

 

This is what the buyer sees so unsure where the revised amount is coming from. The seller is Alberta. The buyer is in Alberta. The only tax in Alberta is GST at 5%.

 

lotzofuniquegoodies_1-1755226577540.png

 

devon@ebay  Is this something that was recently update by ebay but with no warning to sellers? In the past on a cash sale the buyer ONLY paid the actual amount of item.

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Cash on pick up transations.


@lotzofuniquegoodies wrote:

It appears now that tax is being collected on even cash sales. That tax comes out of anysellers profits on the and is used in calculating the FVF's. 

 

devon@ebay  Is this something that was recently update by ebay but with no warning to sellers? In the past on a cash sale the buyer ONLY paid the actual amount of item.


I'm going to hazard a guess that this is how it's always supposed have been since eBay was required to collect and remit tax on sales from Canadian sellers. @lotzofuniquegoodies.  The blurb you posted in your original post from just over a year ago is from the .com site (as you note) and probably doesn't reflect Canadian laws and regulations as we don't have use tax here.

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Cash on pick up transations.


@marnotom! wrote:

@lotzofuniquegoodies wrote:

It appears now that tax is being collected on even cash sales. That tax comes out of anysellers profits on the and is used in calculating the FVF's. 

 

devon@ebay  Is this something that was recently update by ebay but with no warning to sellers? In the past on a cash sale the buyer ONLY paid the actual amount of item.


I'm going to hazard a guess that this is how it's always supposed have been since eBay was required to collect and remit tax on sales from Canadian sellers. @lotzofuniquegoodies.  The blurb you posted in your original post from just over a year ago is from the .com site (as you note) and probably doesn't reflect Canadian laws and regulations as we don't have use tax here.


@marnotom! 

 

I've noticed in the past when changes happen on com, it sometimes takes awhile before or if they show up on ca. They can be a cut and paste or slightly modified. Links may or may not always work. They can be advised to address and correct. It doesn't always happen. They tend to rarely provide basic accounting functions (bills/invoices) like a normal business would. Often not including information....just because 1 of their corporate lawyers said to.

 

I'm wondering if it was minced into the new  recently released TOS we just got  buried somewhere amongst the legal mumbo jumbo. I nodded off part way through trying to find out what was difference was and never went back to it. If they are going to "amend" official documents it might be a good idea to clearly list what the <insert bad word here> modifications somewhere close to the top. Or maybe that is the plan. Make it confusing enough so that majority never read it from beginning to end. I, unfortunately, do not have a lawyer on retainer.

 

There needs to be a way to justify collecting a tax we are not registered to collect from customer (if they pay cash) at the door.

 

As for the discrepancy between the screenshots posted above will post a screenshot of the FVF's once I can mark it paid and picked up. 

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Cash on pick up transations.

Justify collecting the tax? I'm not sure why this is a problem. The fact the buyer paid in cash doesn't change the fact that eBay provides an "invoice" that includes the taxes payable.

 

I have always been registered for GST and always charged eBay buyers GST, if a buyer is making a cash on pickup they still have to pay the tax.

 

Some people might tell that buyer, next time contact me directly wink wink and perhaps the tax goes away?

 

 

Buyers do pick up with cash expect to avoid shipping charges, if they expect no taxes as well they are out of luck.

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
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Cash on pick up transations.

@recped 

Re: Customers not paying tax and being out of luck.

 

In a cash situation eBay is not in any way facilitating the physical payment. Only for the FVF amount. (As a side even if sellers doing pick ups there is NO way for all listings to even add a handling fee to cover the process. I have dealt with local sellers in the past that have added 5.00 per item per picked up item. Unreasonable but how they roll. It's just not an option for all categories.)

 

I've never collected tax because I was never registered or required to.  EVER!! It seems like a sneaky way by eBay to be collecting it and then a way to be charging the FVF on the revised total, no matter what the value is. Besides, since the tax started to be collected by eBay I have never viewed tax being added or displayed on the customers packing slip when it got printed.  There is nothing about it in in eBay help that I can locate. When it got amended into a think it had to be recently.  It would be basically like selling a shovel to neighbour. Here is your shovel...here is your 10 bucks. Deal done. No tax involved.

 

Do you have an explanation for the discrepancy between the 2 screenshots for the tax total?

 

Also now, when the packing slip prints the customer info is mia. It only shows the seller info. Something else that is new with this situation.

 

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Cash on pick up transations.

According to a google search  on the subject tax is ONLY collected by eBay in the USA in the 22 states under NEXUS and it becomes the sellers responsibility. It is not addressed for Canada. This is the specific help page regarding collecting tax. Cash sales are NOT mentioned.

 

https://www.ebay.ca/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

 

US Link: Much more detailed.

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

 

As per a google search:

In some states, eBay, as a marketplace facilitator, is required to collect and remit sales tax by law. The tax is paid by the buyer when the seller has nexus in their state. If eBay has not collected sales tax in a state where you have nexus, you will need to do that yourself.

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Cash on pick up transations.

devon@ebay 

@jtg204 

lotzofuniquegoodies_1-1755292880337.png

 

So appears what happens is even though the item sold for 17.00 (listed for 18.00) the applicable tax is somehow becomes 1.45. (5% tax on a 17.00 item should be .85 or how it applies at a normal store.)

 

FVF fees attached. Magically those fees are being based on 18.00 + .45 tax. There is a secondary charge for that standard .40 + 2 cents tax.  This is not really about the amount vs having the charges being calculated correctly. Is eBay applying best offer as some kind of imaginary coupon? Is this similar to how a sellers total sales dollars are calculated using item price + shipping + sales tax/vat when in reality tax and shipping are not profit?

lotzofuniquegoodies_0-1755292516432.png

As a point of reference confirmed another item that was sold recently using best offer and shipping. The FVF's were based on the best offer price + shipping + tax correctly. 

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Cash on pick up transations.


@lotzofuniquegoodies wrote:

devon@ebay 

@jtg204 

lotzofuniquegoodies_1-1755292880337.png

 

So appears what happens is even though the item sold for 17.00 (listed for 18.00) the applicable tax is somehow becomes 1.45. (5% tax on a 17.00 item should be .85 or how it applies at a normal store.)

 

FVF fees attached. Magically those fees are being based on 18.00 + .45 tax. There is a secondary charge for that standard .40 + 2 cents tax.  This is not really about the amount vs having the charges being calculated correctly. Is eBay applying best offer as some kind of imaginary coupon? Is this similar to how a sellers total sales dollars are calculated using item price + shipping + sales tax/vat when in reality tax and shipping are not profit?

lotzofuniquegoodies_0-1755292516432.png

As a point of reference confirmed another item that was sold recently using best offer and shipping. The FVF's were based on the best offer price + shipping + tax correctly. 


I realize this is going to be magically called the dreaded "Zombie Thread" but come up against this again.

 

According to ebay (currently)  with a cash sale if customer pays via Paypal/CC etc eBay collects tax and charges fees on the total amount.

************************

If the buyer pays cash at your door SELLER can either try to collect tax from BUYER or the alternative is write it off as a loss. As soon as you park picked up/paid SELLER will be charged FVF's based on the total including any applicable tax. 

 

There is nothing specific I can find in eBay help on the subject other than what I posted originally from the US help page archives. In speaking to eBay help via Facebook this evening their only suggestion was speak to an accountant on their hourly rate to get real legal advise. Again this sounds something else that was implemented without advising sellers. They did say they would send the 1099K form if I qualified.  (A) Nowhere close to 30,000 USD and B)in Canada. C) That is 30,000 in a calendar quarter

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