FVF credits not taxed? Why?

[lady.stark]

I analysed very carefully the last invoice I got from eBay... the FVF are taxed, the store fee is taxed, but the credit on FVF is not... why? It should be taxed like everything else!

[ypdc_dennis]

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@lady.stark@  lady.stark wrote:

I analysed very carefully the last invoice I got from eBay... the FVF are taxed, the store fee is taxed, but the credit on FVF is not... why? It should be taxed like everything else!

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I assume you are talking about the 10% discount credit some sellers get.

eBay is calculating the discount on qualified fees before tax.  Valid under the complex taxes rules. The discount is applied to the final invoice cost, not to individual parts.

...

However, credits for refunded FVF should also include a refund of sales taxes that were charged on the fee. An individual item adjustment.

-..-

[recped]

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@lady.starkwrote:

I analysed very carefully the last invoice I got from eBay... the FVF are taxed, the store fee is taxed, but the credit on FVF is not... why? It should be taxed like everything else!

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I don't know why eBay display GST/HST in such a weird way, perhaps they dsplay credits differently (I don't have any recent ones to look at).

Understand that on your invoice a fvf of $1.00 will show as $1.13 (in Ontario) on the individual line item. The actual total fee amount in the summary is the net with the GST/HST calculated and shown as a separate line item.

I'm pretty sure if you add up all the net fee and credit amounts and then calculate the GST/HST it will match the amount charged in the summary.

[lady.stark]

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@recpedwrote:

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@lady.starkwrote:

I analysed very carefully the last invoice I got from eBay... the FVF are taxed, the store fee is taxed, but the credit on FVF is not... why? It should be taxed like everything else!

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I'm pretty sure if you add up all the net fee and credit amounts and then calculate the GST/HST it will match the amount charged in the summary.

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It does not. My final value fees total - before taxes, on item price only - without the FVF on shipping - was around $16.00. The 10% discount shows as $1.60.

The totals on top have taxes included, then the credits are showed, and the total less the FVF credit - without taxes - is shown.

[momcqueen]

Do you mean to say the initial FVF is taxed on your statement but the credit is not? As in, the FVF assessed is not equal to the FVF credited on your Account Activity? I'm struggling to understand the nature of the problem you're presenting. 

[momcqueen]

Like, are talking about FVF credits for Unpaid Items or Cancelled Orders? Or are you talking about the Top-Rated Seller discount? That Top-Rated Seller Discount is treated like a coupon. Coupons/rebates are never taxed. They are deducted from the final amount and then taxes are assessed on the balance, are they not?

If place an order with an online retailer and use a $10 retailer-granted voucher, am I taxed on the order total minus that $10? Or am I taxed on the full amount of the order as if the voucher was not applied. My assumption is the latter but I confess I don't pay attention.

[lady.stark]

Sorry for the confusion... I am talking about the Top-Rated seller discount of 10% on FVF.

[reallynicestamps]

You mean you are paying tax based on the full value rather than on the discounted value?

I've run into that in shops from time to time. I think, maybe , not that I was really paying attention, that it has something to do with the type of discount?

Hmm- like Canadian Tire charges sales taxes on the total bill -- even if you pay with Canadian Tire money?

@pierrelebel  Only you can save us, Obi-wan!.

[pierrelebel]

"Sorry for the confusion... I am talking about the Top-Rated seller discount of 10% on FVF."

Could you please provide a specific example with all numbers.

How much fees were charged in a specific period?

How much credit (if any) were deducted?

How much was the 10% FVF rebate?

How much tax was charged?

[tobyshitzu]

What are the numbers at the every bottom section of the invoice, where it has "tax Summary".  There is a Total Taxable amount line, and a gst line.  Tax is applying to the net fees charged

[lady.stark]

Here it is Pierre:

Account summary January 16 - February 15 Pacific Time

Previous balanceC $39.83

Payment received 23-Jan - Thank you-C $79.66

New fees Includes promotional savings where applicable  

Final value feesC $20.89

Subscription and one time feesC $28.68

SubtotalC $49.57

Discounts and credits

Discounts-C $1.60

Promoted listing fee credits-C $2.60

Subtotal-C $4.20

Total dueC $5.54

The $1.60 Top-Rated discount was calculated on $16 FVF on item cost only. But it is not taxed here as you can see.

[ricarmic]

I know that almost always what shows on my monthly bill is NOT what I actually pay a couple weeks later when they pull the $$ out of my PAYPAL account.

Generally what I pay is less, although the odd time it is more. 

This makes the tax accounting challenging because I don't have an invoice that matches the bill, I think only one month it actually matched.

Nothing is easy around here anymore!

[recped]

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@lady.starkwrote:

Here it is Pierre:

Account summary January 16 - February 15 Pacific Time

Previous balanceC $39.83

Payment received 23-Jan - Thank you-C $79.66

New fees Includes promotional savings where applicable  

Final value feesC $20.89

Subscription and one time feesC $28.68

SubtotalC $49.57

Discounts and credits

Discounts-C $1.60

Promoted listing fee credits-C $2.60

Subtotal-C $4.20

Total dueC $5.54

The $1.60 Top-Rated discount was calculated on $16 FVF on item cost only. But it is not taxed here as you can see.

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You didn't post the Tax Summary section of the invoice, without that the info you did post is useless.

[lady.stark]

In my opinion, it's the tax summary that is useless... but here it is:

Tax Summary

Total Non-Taxable amountC $0.00

Total Taxable amountC $39.46

GST/HST at a rate of 5%C $1.98

QST at a rate of 9.975%C $3.93

Total Current Invoice AmountC $45.37