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[1.] If you don’t have the answer, who at eBay does?
"While PayPal charges a fee to process the total amount you receive, we do not charge you fees to collect or remit the taxes on your buyer's behalf."
I do not like the intimation in that statement. [2.] Is eBay planning to levy another fee on worldwide sellers because of eBay’s requirement to collect the state taxes?
[3.] So why should any seller such as myself, be charged a fee on a tax which by LAW, I, as a Canadian, am not required to collect or remit on behalf of any buyer to an American state? There is no sales tax obligation for me since I have not established nexus in any state. I do not sell enough into any state to exceed their threshold. I do not have a registered tax number for any state.
-Quote edited for brevity, bracketed numbers added for ease of reference-
Hi @gwrocen - I'm not certain how much more clarity I can provide on this subject, but I'll give it a go.
[1.] The justification for this change was to reduce buyer confusion in avoiding splitting their PayPal transaction into two, regardless of the seller's location. If you use the eBay Marketplace (nexus) to facilitate a sale to a buyer in a marketplace facilitator (nexus) state, you will see US sales tax applied to the buyer's purchase and sent through your PayPal account.
[2.] No
[3.] By using the eBay Marketplace to make a sale you are participating in a financial nexus. While you may not have a physical presence within the state, and may not have sales that meet the threshold requirements as set by that state, eBay does. That's actually the whole reason these states made the law focused on Marketplace Facilitators as opposed to individual sellers. Your utilization of our platform means your buyers will have tax assessed where applicable.
As to why you should pay a fee? I can only direct you to PayPal for assistance with that justification, since eBay is not charging you the fee to process that amount. Again, I realize that for you this is splitting hairs, and that your larger argument is that this is not something that you should see at all. I do not have a response to that other than the ones I have provided previously.
Ultimately, it seems like we're at an impasse, because the information I have available to provide hasn't been sufficient for you. While I am happy to answer questions and be a reference point for anyone on the boards, I may no longer reply to further questions along these lines.
Hello Tyler,
Most of the frustration was caused by the original announcement dated Oct 1,2019
https://community.ebay.ca/t5/Announcements/US-Internet-Sales-Tax/ba-p/428022
Please note the applicable tax will continue to be paid by the buyer and as a Canadian seller, you will not need to take any action.
Nowhere did it state there was going to be a fee attached to this at the backend. Possibly thinking sellers would not notice? Hmmm!!! if this was addressed properly from the get go it may have reduced all this ongoing back and forth.
As far as I know a Brick & Mortar store does not charge a fee to collect Provincial or State taxes. Maybe mute. Maybe not. Usually those are the costs of doing business.
The next concern is how its displayed in Sellers Hub and on the various forms. In Hub Sales Tax & Shipping should be separate totals. They are not revenue for eBay sellers. Only for eBay. Shipping in the past was a separate column. Suddenly it changed. Seller's Hub is supposed to be a tool for the use of sellers.
When it comes to each area displays the numbers in different formats. View Record shows Tax as part of the total. When you check packing slip suddenly the tax line is missing . As per my example the total is incorrect as per eBay math. Refer to the Shippo packslip and the tax is included as part of the final but omitted as a line item. In the normal scheme of things(Real World Environments) Sales Tax should show with the State it is being applied to along with the % being used. Important information for both the seller and buyer. As others have mentioned there are products that are exempt or have lower rates. Information available on State websites which eBay should have access to. Are those rates even being applied?
Regarding the suggestion, please call PayPal, as others have noted you will receive a variety of answers depending on who and when you call or that doesn't sound right. May vary depending on when you originally called. Quite often, "You should check with eBay on that." Another fine example of passing the buck. eBay & PayPal knew the whole story from the beginning. That was never the explanation we were given.
See recent transaction screenshots attached.
A = B or C(D for PayPal) We need to be able to depend on the numbers presented by eBay and not need an accountant at the ready. There also should be no need to download a special report.
Thanks for sharing this input @lotzofuniquegoodies - the Seller Hub 'download report' link on the Orders page is the best place for a single read out of your orders. I recommend downloading it quarterly, just to keep for your records.
Hi @reallynicestamps - the process change announced in October did not impact managed payment sellers, and have not changed even when PayPal was added as a payment method for buyers last year.
Thanks!
@reallynicestamps wrote:
So sellers using Managed Payments are not charged -- by MP or PP-- a fee for processing the Internet Sales Taxes?
Hi @reallynicestamps - Sellers participating in managed payments receive funds a single way (via managed payments). That's regardless of how their buyers choose to pay (credit card, paypal, Apple Pay, etc). There is no processing fee for US sales tax in managed payments.
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