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Old 06-27-2021, 09:01 AM
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Jobu Jobu is offline
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Join Date: Jul 2014
Location: WI
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Collecting fees on the tax doesn't really end up hurting the seller that much though.

Ebay also figures out the appropriate taxes for us, collects them, and remits them on the seller's behalf for every jurisdiction. Certainly it is worth it to everyone who sells on Ebay to pay an additional dollar to not have to do that ourselves, no? In addition to the fact that we shouldn't expect Ebay to do that for free, as the new agent responsible for the money (including the tax portion) in the transaction, Ebay should be able to charge a % on that as I don't know of any organization which will process money for you, and take risk associated with sales guarantees, and just exempt a portion of it and do that bit for free. All of the above is certainly worth a dollar, isn't it?

An example of the new system vs. the pre-tax system from a recent sale:

Sale price: $985
Price + tax: $1,044.10
12.35% of price + Tax: $128.95
Fixed final value fee: $0.30
Total fee: $129.25
Total payment to me: $855.75

Under the pre-tax, pre-managed payments system, I would have paid 10% of the $985 to Ebay ($98.5) + 3% of the $985 to Paypal ($29.55) = $128.05 in total fees. So the new system, where Ebay handles all of the tax stuff for me, costs me an extra $129.25-$128.05 = $1.20.

Last edited by Jobu; 06-27-2021 at 09:02 AM.
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