FVF on US sales tax and HST on a top (((

[raanana]

Is it forewer,that ebay charges FVF on US sales taxes and then HST on this fees ?

My last sale ended up with 14.15% fees and that even after Top rated seller account,so without discount it would be around 16%. By end of the year its coming out as a nice ammount out of our pockets ((

What is next carbon tax,air tax ,tax just because ?

[marnotom!]

Don't forget that FVFs are the sale fee and the payment fee bundled together.  In the past, you would have also been paying PayPal fees, so it's quite likely that your total FVFs haven't changed significantly since you went on board with Managed Payments unless you were participating in PayPal's micropayment program.

FVF on US sales taxes have been around since Managed Payments started.  eBay having to charge and collect US sales taxes on sales has been around for a little over a year, I guess, and it also has to charge and collect taxes on sales to Australia, the EU, and the UK and other non-EU countries.  Those taxes contribute to the total transaction value and are subject to FVFs, sort of in the same manner that brick and mortar retailers registered to charge and collect HST or GST and applicable provincial sales taxes are dinged charges on those taxes by their credit card merchant account provider.  Personally, I'd prefer giving eBay an extra 50 cents or so on a 50 dollar sale for them to deal with collecting and remitting that tax to the appropriate treasury rather than having to do it myself, but your mileage may vary.

HST on seller fees is definitely not a new thing, either, by the way.

[recped]

eBay started charging GST/HST on fee about 5 years ago, they fought with CRA ovdr this for years but finally were forced to comply.

eBay started charging fees on US Sales Tax when they took over payments, prior to that only PayPal fees were applied to US Sales Tax,

Basically the transition went likes this

10% eBay + 2.9% PayPal was replaced with eBay 12.35%, the difference, a reduction of 0.55% which pretty much covers the increased fees on taxes (not so much for the high EU/UK VAT).

[reallynicestamps]

Keep in mind that the Category of your product also has an effect on the fees you pay.

From 0% , on sneakers priced over $100, to 14.55% on Books.

https://www.ebay.com/help/selling/fees-credits-invoices/store-selling-fees?id=4809

Even when I started selling here , circa 1998, I used 20% of payment as my rough eBay fee cost. Because I was pretty well always high, usually very high, the actual rate was a pleasant surprise.

And most sellers have never held a Merchant credit card account and don't understand that all payment processors charge their fees on the whole payment, no matter how it might be explained.

[raanana]

I know,that is not new.But by slelling on other platfor as well I can compare.Ebay can charge any US UK Australian taxes ,but charging FVF on those taxes and HST on a top

isnt fair at all,but  what fairness I'm asking for ? (( 

[raanana]

I'm here since 2000,never paid 20% fees,actually fees were  much lower,then now.I'm selling pretty much the same material,so can compare.It was no international fees as well,its pretty new.

[raanana]

As by my numbers I'm paying ebay now more ,than I used to pay  before to paypal + ebay.

[recped]

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@raanana wrote:

I'm here since 2000,never paid 20% fees,actually fees were  much lower,then now.I'm selling pretty much the same material,so can compare.It was no international fees as well,its pretty new.

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PayPal has always charged an International fee on any transaction where the buyer and seller are in different countries. PayPal never showed it as a seperate line item and apparently many sellers were not aware they were paying this fee.

Your fees are high in percentage terms because so many of your sales are very low value, the 30 cent transaction fee is the reason for that (another thing that PayPal also had).

[femmefan1946]

Yes.

Fees were never 20%-- but when I thought about fees, I use 20% as my guideline and then the actual lower fees are a pleasant surprise.

Generally, my fees have run 12%-16% of the total payment.  I've been selling here since 1998.

The biggest changes are all from taxes being charged for online sales, which took governments a few decades to figure out.

Canada forced eBay (and other online sellers) to remit GST/HST on their fees.

THe US Supreme Court forced eBay (and other online sellers) to remit state sales taxes which does not affect us but both eBay and Paypal followed Standard Business Practice by charging their fees on the total of the payment processed, including those taxes.

Australia and the EU forced eBay (and other online sellers) to remit their VAT and again we are charged the eBay/Managed Payments/Paypal fee on the whole payment.

If the International Fee you mention is the higher fee charged for non-Canadian payments, PP was charging 3.7% for US and 3.9% for international payments, compared to 2.9% for domestic payments.

Part of the problem is that PP charged its fees immediately, while eBay was charging monthly.

With Managed Payments, all fees are charged immediately and, frankly, MP is a little more transparent about those charges.

One definite and obvious difference is that both PP and MP charge their fees to process sales taxes. But with PP that was 3.7% (for USA) while with MP it is a higher percentage of around 12.35% (again for USA).

On a $100 US sale to a state with 5% sales tax, PP would charge the seller 18.5c while MP would charge 61.75c, slightly more than a 43c difference.

[recped]

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@femmefan1946 wrote:

Fees were never 20%

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Fees can easily be 20% when you are selling very low value items. On a $5 sale the fixed fee ALONE is 6%. Of course the same would apply to PayPal unless you had a micro-account.

One recent change at PayPal (for US Sellers), you can now have a micro-payment account and PayPal will route payments to either the micro or the regular automatically depending on which has the lowest fees for that specific transaction. Helps to balance off the recent big overall fee increase from PayPal (not yet in effect for Canadian sellers).