eBay charging sales tax
 

Tennessee just came on board and I realized eBay was charging state tax on s/h. I contacted them yesterday via chat and told the person the seller got the data right but when I went to check out eBay charged tax on s/h. I told him Tennessee does not charge sales tax on s/h. He said thanks and he was sending the information forward. I am also going to send the information to eBay HQ's in California.

Ebay's actually making money on sales tax collection. They aren't just passing it on. So, don't hold your breath waiting for them to correct their "mistake".

eBay charging sales tax on shipping and handling is a hidden "convenience fee" and I believe it was covered in one of the seller updates that most of us automatically delete. No doubt eBay legal has it covered in words but no doubt a class-action suit in the making down the road.

I won't hold my breath but I did write to the CEO. I don't expect it to do any good but I like writing letters and this will document the problem I also sent a copy of the chat I had.

In my experience, some states do not have sales tax applied to s/h by ebay while others do. Massachusetts is one state that ebay only charges sales tax on the product, not s/h. My understanding is that the charging of sales tax on s/h varies by state and is not controlled by ebay

Thank you. I checked and Tennessee does charge sales tax on shipping and handling -
"Tennessee sales tax usually applies to charges for shipping, handling, delivery, freight, and postage. The general rule of thumb is: If the sale is taxable, delivery-related charges are taxable; " so I stand corrected and eBay was right.