Fees being charged on the US Sales Tax collected by eBay

[adicio2005]

I am based in Canada and sell on eBay.ca When I sell to an American buyer, eBay collects the state sales tax. I have noticed that then eBay will charge me fees on the US sales tax collected as well even though I have nothing to do with that. That is totally unfair. Can somebody explain why eBay does this. Thanks

seller adicio2005

[marnotom!]

Credit card payment processors and PayPal charge on the total transaction value as well, so if you were selling when US Internet Sales Taxes kicked in but before Managed Payments was unleashed, your PayPal charges would reflect the tax charged the buyer.

Final Value Fees were dropped slightly when Managed Payments kicked in to compensate for them taking in the entire transaction value.  I guess it was either do that or somehow separate out the eBay charges from the Adyen charges and raise the FVF instead.

It's often better to look at your overall eBay charges and see if they make sense rather than fuss over one particular aspect of their makeup.

[martiqefinds]

And this will apply also to the Canadian sales taxes which will soon be charged to Canadian buyers. The fees from Ebay will include the % on the total sale including Candain taxes paid.

[mrdutch1001]

and you just noticed this?

eBay has had this in place for nearly 2 years now...

eBay fees are calculated on the TOTAL transaction and that includes any applicable tax paid by the buyer...

[adicio2005]

No, I had noticed it for awhile.....Does not make sense. Sellers should file a class action against eBay

[adicio2005]

So as of July 1, 2022 when they collect GST and PST, they will the seller charge fees on that as wellon that

[mrdutch1001]

"Sellers should file a class action against eBay"...why? what do u think will be gained? I see ZERO success in that proposal...but you best get on that idea and be sure to come back and tell us how successful u were..

[reallynicestamps]

as of July 1, 2022 when they collect GST and PST, they will the seller charge fees

No.

As previously explained.

The fees are charges on the buyer's payment, not on the individual amounts that make up that payment.

This has been Standard Practice in payment processing since at least the late '70s which was when we got our first merchant credit card account, and paid fees on Ontario sales tax. Before there even was a GST.

[mario909]

Taxes are a suck all the way. Ebay fees is jeopardy also. When you sell an article even if it's in USA the buyer pays taxes (collect by Ebay) on his purshase. On their side, Ebay charge fees on total and final sell including taxes (paying by buyer) + shipping cost. For the seller he repaid taxes on Ebay fees + Taxes on shipping cost when he goes to Canada Post. So that's taxes over taxes. The seller is penalize because the buyer knows he should pay taxes at the end and then bid less on article.

For Ebay, when he took over the seller account (without permission) against PAYPAL we should normally  had received a discount for this getting out intermediate player (PAYPAL). But Zip.....Ebay filled up the hole leaving by PAYPAL .