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.
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I contacted PayPal and they said they’re not collecting taxes, just reporting the taxes that eBay collects. I said that their information is not correct all the time. They said to contact eBay. I contacted eBay and told them that maybe the data set they’re giving to PayPal might be inaccurate. She said she would report the problem. Since my phone call, I’ve seen a marked improvement - only a few discrepancies.
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I am having the same problem and I imagine all the Ebay sellers are. Last night I had a sale on Ebay for: Item: $9.00 Shipping: @$6.91 Sale Tax (Ebay Collected): $.92 Total: $16.83 Then on Paypal: Payment details Purchase Total $9.00 USD Sales Tax $0.92 USD Shipping Amount $6.91 USD Handling Amount $0.00 USD Insurance Amount $0.00 USD Gross Amount $16.83 USD PayPal Fee -$0.79 USD Tax collected by eBay -$0.92 Net Amount $15.12 Paypal charged me an additional >$.02668 on this transaction due to the California sales tax Ebay charge to my final value fee. It is not my responsibility to pay a fee amount on another fee (CA sales tax). All Paypal needs to do is change the method in their software to remove the sales tax from the gross amount before calculating thier PAYPAL FEE. This could be a much large problem than is visible since I am not the only seller having this problem.
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It's an expense that should be beared by eBay they're collecting the sales tax I am not, I'm not legally required to collect sales tax in any state besides the one I'm located in. It's fraud because they're making the merchant pay the fee when they're aren't legally obligated to.
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