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I am really curious to know if I am the only seller who has caught on to this scam by Paypal. I have examined the last few sales I have had on Ebay. Ebay has charged the buyer for Sales Tax on the sale. Then that GROSS amount which includes the Item, Shipping, SALES TAX is collected by Paypal. Then Ebay pulls the shipping cost from my Paypal Account and and Paypal takes their fee from the rest of the payment (Including the SALES TAX). So for those last few sales I noticed a differnce of .03 - .04 more in Paypal FEES dues to the sales tax collected by Ebay. Why do I have to pay additional Paypal FEEs for Ebay to collect a sales tax which is not required for them to do directly (except for CA). I am not making any profit on the sales tax. The Sales Tax is a FEE for certain states being collected by Ebay, not by the sellers.
I have spoken to customer service at both Ebay and Paypal. I was told it was not them it was the other. So the merry go round is spinning and nobody it taking responsibility. So, I issued a complaint on Consumer Affairs, the NY State AG, and next to the BBB.
The Ebay policy on Sales Tax states:
"Once ebay starts to collect sales tax in the required states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting, and remitting sales tax."
Obviously they don't follow their own policies.
Solved! Go to Solution.
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I have a new monkey wrench to throw into this discussion, which I started some time ago.
I have just had another sale on Ebay in the amount of $94.81, i added shipping of $15.80 which is a total of $110.61. Ebay is collecting sale tax for Georgia which is 7% = $7.74. However when I try to send an invoice to my customer for the payment, Ebay is charging $17.21 in sales tax listed on the invoice. So now, not only do we pay the fee for collecting sales tax, now we put customers through being charged more than 2 times the sales tax due to be collected? I contacted the help department, which is outsourced to the Philippines and they told me to have the customer contact them and supply a sales tax exemption form to them so they can give them credit.. WTF, no way to get Ebay to correct this in the Philippines and no way for them to send my call to the USA to get resolved? Now illegally charging an amount over the state sales tax of 7% and collecting that. Who's pocket is that going to fill???
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Please do all you can to stop this unfair practice and injustice and post it. This is unfair to the sellers as ebay profits hugely pennies at a time.
Thank you
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This is definitely BS and hope to eventually receive my paperwork in the mail for the class action suit. I'll be happy to get refunded some fees. I just checked my fees on the ebay side and at least ebay isn't charging a 10% fee on the tax they collect on our behalf! Was worried we were getting scammed from both ends.
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I agree . They should not include the sales tax when pay pal calculates their fee. Ebay does not include sales tax when they charge their 10% ( final value fee.) Ebay already includes shipping when they add their fee and I don't agree with that either. The seller never gets the shipping or sales tax money, so I feel we should not be charged. And most of my items are used, they where already taxed the first time the item was sold. Double taxation! I am selling less on ebay because of the fees on ebay and paypal.
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Actually, as of yesterday, eBay started charging the final value fee on the sales tax as well for those of us forced to use their Managed Payments system (which I believe everyone is supposed to be converted over to by the end of this year). I thought that was one benefit at least of the Managed Payment system that was different from Paypal and a bit of a 'savings'....but I guess eBay decided that 'little' bit of extra income was too good to pass up.
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