New to the community? Welcome! Please read our Community Rules and Guidelines
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.
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.
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.
So let me get this straight.....
Ebay now automatically charges fees based on the sell price of the item.
This fee is to be payed by the purchaser, and is collected by EBAY - who sends this directly to the state.
The seller NEVER GETS this money, it is deducted by Ebay as part of the transaction.
BUT - PayPal charges the seller a fee based on the total of selling price PLUS the tax amount???
How the hell is this legal?
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