The US "tax flow through" has started....

Looks like today was opening day for the new tax flow through (for a NY purchase).

 

Here's what it looks like in PAYPALand:

 

Purchase total$19.99 USD

Sales tax$1.77 USD

Shipping amount$0.00 USD

Handling amount$0.00 USD

Insurance amount$0.00 USD

Gross amount$21.76 USD

PayPal transaction fee-$0.93 USD

Tax collected by eBay-$1.77 USD

Net amount$19.06 USD

 

So the tax does show on the receipt and email as part of the transaction as we expected.

It also physically comes into the PAYPAL account as we suspected and then immediately leaves.

PAYPAL fees are deducted as we suspected.

 

I tried doing a download of just today so far so I can see how it looks in the downloaded view of the data but the download is still pending.

 

Will advise when I have more news....

 

Message 1 of 27
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The US "tax flow through" has started....

This was the eBay explanation I received Oct 4, 2019 from a CS supervisor.  SR on request to anyone who wants to rock the boat.

 

 I was the supervisor you have talked to earlier. As promised, I'm sending you this email to summarize what we have talked about over the phone.

 

We've talked about the new sales tax update where sellers will be the one to receive the tax money together with the item cost plus shipping as part of the new update as shown on our Announcement boards:

https://community.ebay.ca/t5/Announcements/US-Internet-Sales-Tax/ba-p/428022

 

As discussed, the new update will also take place on PayPal. We have confirmed that the full payment which consists the item cost, shipping cost and sales tax will be charged the PayPal processing fee.

 

We have already raised the concerns about the taxes being charged for PayPal fees and we're waiting for updates about it. Any updates will not be communicated to you directly but rather be announced soon if there are changes to happen.

 

If you have other questions, please let us know.

 

-Lotz

 

 

Message 21 of 27
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The US "tax flow through" has started....


@lotzofuniquegoodies wrote:

Very strange how it was noted in this discussions that these changes were supposed to ONLY apply to Paypal dot com customers. We were supposed to have a reprieve until it was officially announced. Confusion overload!!!

 

-Lotz


I don’t recall that...do you gave a link?  Are you thinking of the discussions about PayPal not refunding fees?  That does not apply to us yet.

 

edit..if you’re referring to the conversation above, I don’t see where it says that.

Message 22 of 27
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The US "tax flow through" has started....

At this point of time it's all a blur. My personal opinion:  Something this major should have been fully and honestly clarified with the announcement and not left to interpretation. Sadly, not an eBay strongsuit.

 

-Lotz

Message 23 of 27
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The US "tax flow through" has started....


@lotzofuniquegoodies wrote:

Something this major should have been fully and honestly clarified with the announcement and not left to interpretation. Sadly, not an eBay strongsuit.

 

-Lotz


Blame the absolutely terrible leadership at the US level. They have decided that due to activist investor pressure on their positions due to not being able to deliver on growth that they can change policy whenever they feel like it now, with no announcement if they decide so. Their positions are sellers are a hinderance and their rightful concerns as a customer and driver of eBay's revenue are to be ignored. Until the US is overhauled and the completely ineffectual executive team is rightfully shown the door expect this to continue. Executive engagement with the seller base is at an all time low. 

Message 24 of 27
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The US "tax flow through" has started....

@lotzofuniquegoodies  wrote:

At this point of time it's all a blur. My personal opinion:  Something this major should have been fully and honestly clarified with the announcement and not left to interpretation. Sadly, not an eBay strong suit.

 

@hlmacdon wrote:

Blame the absolutely terrible leadership at the US level. They have decided that due to activist investor pressure on their positions due to not being able to deliver on growth that they can change policy whenever they feel like it now, with no announcement if they decide so. Their positions are sellers are a hinderance and their rightful concerns as a customer and driver of eBay's revenue are to be ignored. Until the US is overhauled and the completely ineffectual executive team is rightfully shown the door expect this to continue. Executive engagement with the seller base is at an all time low. 

 

@ypdc_dennis  wrote:

"Starting to make managed payments look more attractive..."

 

That's exactly what eBay Corp wants you to think... It's a powerplay move to make PayPal look bad so they can try and win eBay sellers over to accept their new Managed Payments Platform.

 

Be careful what you wish for.....

 

Message 25 of 27
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The US "tax flow through" has started....


@silverpinups wrote:

@ypdc_dennis  wrote:

"Starting to make managed payments look more attractive..."

That's exactly what eBay Corp wants you to think... It's a powerplay move to make PayPal look bad so they can try and win eBay sellers over to accept their new Managed Payments Platform.


Nothing of the sort -- my comment was in reference to PayPal plans to not refund fees when a Seller makes a refund, which is entirely PayPal's choice.

 

Cost of handling state sales tax is a different issue.

 

-..-

 

Message 26 of 27
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The US "tax flow through" has started....

"Nothing of the sort -- my comment was in reference to PayPal plans to not refund fees when a Seller makes a refund, which is entirely PayPal's choice".

 

PayPal has treated sellers very well over the many years so if they have to increase profits so be it...  you will soon forget about the PayPal fee (on the occasional refund) when you are knee deep in the Managed Payments Program. 

Message 27 of 27
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