Why is my final value fee always slightly over 10 per cent?

[harrison6362]

I noticed that my final value fees are always slightly over 10 per cent and I can't figure out why.

Recent example: I sold some pins from Canada to Canada, auction style, for $26 CDN. There was no listing fee, no upgrades of any kind, no shipping costs. It was the most simple straightforward scenario I can imagine.

Anyway, my FVF was $2.73, a percentage of 10.5% - where is this 0.5% coming from? I can't find it anywhere on the eBay site.

I looked at some older auctions with the same simple scenario and again, there's always a few pennies tacked on at the end with no easy explanation. I am an Above Standard seller with no strikes to my name. I can't figure it out. Help?

[pjcdn2005 · Accepted solution]

Ebay charges gst / hst on final value fees.  In BC you would be charged the 5%gst.

[cumos55]

eBay charges GST/HST on all fees

Living in a GST Province means you will be charged 5 % on all fees

If the fee is 10 % then the total is 10 % plus 5 % of 10 % equals 10.5 %

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If you lived in Ontario where HST = 13 % then the percentage would be 

10 % plus 13 % of 10 %= 11.3 %

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and then for provinces where HST = 15 %  it is 

10 % plus 15 % of 10 %  = 11.5 %

-  - - - - - 

The charging of GST/HST became a reality when eBay establish a business location in Canada......

[ikrananka]

Good grief - I missed that entirely. Thank you, at least I now understand the reason. Why eBay obfuscate this so much is beyond me. They seem to make it quite difficult to find a breakdown of the fees per auction and then don't show the sales tax separately. Of if they do I have been unable to find it.

[kawartha-ephemera]

Ebay canada is now a Canadian registered corporation which means ebay is obligated to apply, GST and HST to the amounts they charge for the their services provided to Canadians. It appears from your example you are in a 5% GST Province, using you example the numbers work out like this; $26.00 x 10% FVF = $2.60 in FVF, but now that ebay Canada is domiciled in Canada they must charge GST on the services they provide. 

$26.00 x 10% FVF = $2.60 FVF ….  2.60 +( 2.60 x 5%) = 2.60+0.13 = 2.73

Sellers registered in HST Provinces like here in Ontario have 13% HST added to their FVFs.

Prior to the corporate reorganisation ebay Canada was registered as an Irish Company which allowed them to snub their nose at the CRA when it came to collecting GST and HST.

[mrdutch1001]

fees are subject to 5% GST

[kh-leslie]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.

[ikrananka]

Sorry for bumping an old thread but I have exactly the same question.  I keep getting charged 10.5% instead of 10%.  What gives?

[ypdc_dennis]

10% FVF plus 5% GST (Alberta rate) on the fee makes 10.5%

[ikrananka]

Thank you, at least I now understand the reason. Why eBay obfuscate this so much is beyond me. They seem to make it quite difficult to find a breakdown of the fees per auction and then don't show the sales tax separately. Of if they do I have been unable to find it.

[ypdc_dennis]

Sales tax is shown separately on the monthly invoice for the entire month's worth of fees. It is not shown separately for each listing/sale/store fee.

[rudisch0_1]

Nothing you can do there just crooks ,and now you are also paying paypal fees on the money they take for there US  taxes 

[harrison6362]

That would make perfect sense - too bad it's not more clear in the fee tables. Thanks!

[lotzofuniquegoodies]

Would be nice if they showed the percent fee charged in each line item with any tax as a separate amount.Percents do vary per category. This would be kinda like the "concept" where you show your math.

[femmefan1946]

It's relatively new, but if they can add the tax they should be able to show the tax as a line item.