Pretty simply cut straight. So is this correct? If I sell an item for $10 & eBay collects $2 tax for a total transaction of $12., does PayPal charge me their fee based on the $12. Sounds like a tax man question - for the FEDs that is.
Yup eBay is messing this all up, and I had a customer who bought an item then requested a refund before it shipped and I refunded and then PayPal took the full amount plus the eBay tax from.my account I had to fight with PayPal to get it back
Encountered this for the first time today. I'm an Australian seller and my USA buyer was charged tax on our transaction - the ebay invoice/packing slip I send with purchases did not show the sales tax - not happy about that - and it certainly appears that PayPal fees were based on the tax included total. This is yet another money grabbing tactic by PayPal, like their non-refunding of fees on refunded payments. Shame on you PayPal
Thank you for your posts. The entire amount transferred in a payment via PayPal is subject to applicable fees. I'm sorry for any confusion.
Olivia
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Ebay and Paypal will be named co-defendants in upcoming class action lawsuit you can guarantee it, it's illegal and fraud to do that, we the merchant are not getting that full payment therefore we cannot be liable for the fees associated with that. This is another scam pulled by paypal and ebay to rip off the merchant.
Technically it is 'sales tax' not a 'fee' that ebay is now including and collecting and PayPal is facilitating (and gaining from) - but yes you are absolutely right. Shameless, disgraceful and I sincerely hope you are right that it is illegal- we may have a hope in that case!
It's def illegal and eBay says in their own literature their new sales tax program that it's no cost to their merchant and they're collecting it, but they will say we aren't collecting a fee PayPal is and then they'll play the game where they point at each other. Ever since they split any issue with eBay they say call PayPal then PayPal says call eBay. Awful companies
The total, including tax is subject to 2.9%, plus the transaction fee. How is this legal? Sold an item for $144 + $8.64 tax = $152.64 Should have been fee of $4.48 NOW it's $4.73. Might seem petty, but when those pennies add up. I hope someone is looking into this. Thanks.
There is no confusion here and there is a solution. PayPal already has the solution and uses it for the GST (goods and services tax) collected on international transactions for Australian buyers.
As an Australian buyer purchasing an item on eBay from an international seller, I see - for example - the item costs a total of $111 (eBay has automatically incorporated the 11% GST in this price) and I pay this amount through PayPal. When I next go into my PayPal account I see this purchase of $111 split into two separate payments - I see $100 paid to the Seller for their item, and I see $11 paid to eBay Australia & NZ for the 11% GST applicable to this purchase.
The exact same principle should be applied to the Seller. The two amounts should be treated as separate entities and NOT considered as part of the income for the Seller. To try and press this point home - eBay does not charge its FVF (final value fee) on the tax included price - nor should PayPal
