Pick Ups and the tax

[lotzofuniquegoodies]

devon@ebay 

New one on me. Quite often I have customers pick up locally. Sometimes its cash. Other times its PayPal. When it's cash how/who collects the tax? Does the tax just get pulled from the sellers pending funds/bank balance? Is the seller now responsible for collecting tax from buyer to cover amount eBay is basing transaction off of?

On my most recent transaction PayPal was used so tax was added to selling price and fees were pulled from that total. Asking this for future reference to avoid the surprise.

-Lotz

[msau4301]

I'm not sure how it works with cash but the few times I've had Local Pickup requested they have still paid here on the site. I told them payment would still be done through eBay and they had an invoice with the zero shipping amount (Local Pick Up checked off). They paid that and just picked the item up already paid for in advance once a time and date was set up. I wasn't sure how it would work if cash was involved so I did it that way. I don't get many that ask for local pick up though, only about 3 or 4 a year!

[devon@ebay]

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@lotzofuniquegoodies wrote:

devon@ebay 

New one on me. Quite often I have customers pick up locally. Sometimes its cash. Other times its PayPal. When it's cash how/who collects the tax? Does the tax just get pulled from the sellers pending funds/bank balance? Is the seller now responsible for collecting tax from buyer to cover amount eBay is basing transaction off of?

On my most recent transaction PayPal was used so tax was added to selling price and fees were pulled from that total. Asking this for future reference to avoid the surprise.

-Lotz

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Hi @lotzofuniquegoodies! With local pickup, once a buyer commits to buy the item they would pick local pickup as the shipping option and the total for what would have to be paid to the seller will include the tax in the total as if the item was being shipped. 

[lotzofuniquegoodies]

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devon@ebay wrote:

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@lotzofuniquegoodies wrote:

devon@ebay 

New one on me. Quite often I have customers pick up locally. Sometimes its cash. Other times its PayPal. When it's cash how/who collects the tax? Does the tax just get pulled from the sellers pending funds/bank balance? Is the seller now responsible for collecting tax from buyer to cover amount eBay is basing transaction off of?

On my most recent transaction PayPal was used so tax was added to selling price and fees were pulled from that total. Asking this for future reference to avoid the surprise.

-Lotz

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Hi @lotzofuniquegoodies! With local pickup, once a buyer commits to buy the item they would pick local pickup as the shipping option and the total for what would have to be paid to the seller will include the tax in the total as if the item was being shipped. 

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So if the customer were to cancel because many feel they should not be paying tax (I realize paying is as per a gov. decision) would the seller be refunded because the transaction was never completed? As a seller because of my past volume I've never had to collect tax because I didn't meet the threshold. Just believe this is going to put sellers in an awkward situation. As far as I know this is not covered in any of the tax announcements or in the section regarding pick ups.

-Lotz

[lotzofuniquegoodies]

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@lotzofuniquegoodies wrote:

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devon@ebay wrote:

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@lotzofuniquegoodies wrote:

devon@ebay 

New one on me. Quite often I have customers pick up locally. Sometimes its cash. Other times its PayPal. When it's cash how/who collects the tax? Does the tax just get pulled from the sellers pending funds/bank balance? Is the seller now responsible for collecting tax from buyer to cover amount eBay is basing transaction off of?

On my most recent transaction PayPal was used so tax was added to selling price and fees were pulled from that total. Asking this for future reference to avoid the surprise.

-Lotz

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Hi @lotzofuniquegoodies! With local pickup, once a buyer commits to buy the item they would pick local pickup as the shipping option and the total for what would have to be paid to the seller will include the tax in the total as if the item was being shipped. 

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So if the customer were to cancel because many feel they should not be paying tax (I realize paying is as per a gov. decision) would the seller be refunded because the transaction was never completed? As a seller because of my past volume I've never had to collect tax because I didn't meet the threshold. Just believe this is going to put sellers in an awkward situation. As far as I know this is not covered in any of the tax announcements or in the section regarding pick ups.

-Lotz

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Has anyone since/recently been involved in a local pick up where tax needed to be collected? Appears this question was never fully answered. Gets messy when buyer pays in cash.

-Lotzofuniquegoodies.

[marnotom!]

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@lotzofuniquegoodies wrote:Gets messy when buyer pays in cash.

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So don't offer cash on pickup.  Seems to me that cash on pickup is more for the seller's convenience than the buyer's, anyway. 

[lotzofuniquegoodies]

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@marnotom! wrote:

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@lotzofuniquegoodies wrote:Gets messy when buyer pays in cash.

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So don't offer cash on pickup.  Seems to me that cash on pickup is more for the seller's convenience than the buyer's, anyway. 

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I offer pick up on majority of my items. 50 % pay with PayPal, for now and 50 % pay cash. It just may be a buyers preference.  This wasn't an issue before the change was implemented.

-Lotz

[lotzofuniquegoodies]

After marking the order as paid and picked up I checked my fees page. Showed a total amount for fees with tax(GST) but no breakdown including the category without the number they were based on. Just a flat amount fee total + the applicable tax. 2nd line processed shortly thereafter for 30 cents + 2 cents tax. There was no credit for FVF discount noted towards Top Rated Status. The tax(GST) from the customer is not shown anywhere as a portion of the final total or noted on the eBay Packing Slip. Was it built into my total fees with eBay's assumption I would collect?

There was no reason for this transaction to be split into 2, similar to promoted charges being considered a stand alone transaction. The accounting for these types of transactions should not be this poorly documented but sadly we call this acceptable. 

-Lotz

[intimewithmusic]

Hi Lotz,

   I'm confused. I'm not sure why you would collect anything .  The transaction should have been completed at the time of purchase to guarantee the sale.  Your eBay fees are for them to look after taxes and to remove you from the transfer of funds for security.

   Shouldn't you just be verifying their identity and advising eBay the transaction has completed via the buyer's QR code?  collecting funds from a local pickup is basically "brick & mortar". 

IT

[lotzofuniquegoodies]

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@intimewithmusic wrote:

Hi Lotz,

   I'm confused. I'm not sure why you would collect anything .  The transaction should have been completed at the time of purchase to guarantee the sale.  Your eBay fees are for them to look after taxes and to remove you from the transfer of funds for security.

   Shouldn't you just be verifying their identity and advising eBay the transaction has completed via the buyer's QR code?  collecting funds from a local pickup is basically "brick & mortar". 

IT

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@intimewithmusic 

The buyer has the option to pay with PayPal/CC etc or Cash. Entirely their choice because I have always made it an option. Pre tax collection by eBay it was never a problem. I never collected tax as service for the government. Then when I looked at the fees after marking paid/picked up I saw the recognized the lack of transparency with the fee breakdown. If eBay is collecting those taxes from me for those transactions it should be documented. Not pulled basically willy nilly out of the sky.

-Lotz

Anyone have any ideas on how messy tax forwarding by eBay is to the Rev. Canada/ Provinces/States? I can only imagine!!!!

[lotzofuniquegoodies]

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@lotzofuniquegoodies wrote:

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@lotzofuniquegoodies wrote:

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devon@ebay wrote:

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@lotzofuniquegoodies wrote:

devon@ebay 

New one on me. Quite often I have customers pick up locally. Sometimes its cash. Other times its PayPal. When it's cash how/who collects the tax? Does the tax just get pulled from the sellers pending funds/bank balance? Is the seller now responsible for collecting tax from buyer to cover amount eBay is basing transaction off of?

On my most recent transaction PayPal was used so tax was added to selling price and fees were pulled from that total. Asking this for future reference to avoid the surprise.

-Lotz

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Hi @lotzofuniquegoodies! With local pickup, once a buyer commits to buy the item they would pick local pickup as the shipping option and the total for what would have to be paid to the seller will include the tax in the total as if the item was being shipped. 

---

So if the customer were to cancel because many feel they should not be paying tax (I realize paying is as per a gov. decision) would the seller be refunded because the transaction was never completed? As a seller because of my past volume I've never had to collect tax because I didn't meet the threshold. Just believe this is going to put sellers in an awkward situation. As far as I know this is not covered in any of the tax announcements or in the section regarding pick ups.

-Lotz

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Has anyone since/recently been involved in a local pick up where tax needed to be collected? Appears this question was never fully answered. Gets messy when buyer pays in cash.

-Lotzofuniquegoodies.

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Follow up.

Re: Pick ups and cash

If buyer pays using paypal tax IS included in the total. If buyer pays using cash tax is NOT noted on the packing slip, transaction detail or eBay Fees page(Fees pay does not show a break down of fees or what amount fees are based on). This was not a concern with my past transactions because I have never collected tax. (Pre MP), The cash option is entirely at a sellers discretion.

-Lotz