ebay managed payments - anyone using this future mandatory service yet?

[mainemule]

Originally Posted by conor912

I sell on ebay every once in a while and I switched over a couple weeks ago. It’s ludicrous. Instead of funds showing up instantly in your PP account, they go through a “processing”period and then a “payout” is made in the form of a bank transfer. Before, if I made a sale, as soon as payment was made I had access to the funds. Now it takes 4-5 days from time of payment to clearing my bank.

As far as fees go, I’m still not exactly sure how they are calculating. One sale was $529 minus $70.04 in fees = 13.24% and another was $330 minus $41.06=12.44%. Maybe they’re on a sliding scale now? IDK. All I do know is my eBay selling days are numbered.

One of the reasons your % of fees changes is the amount of sales tax being added to the payment based on the buyer's home state sales tax rate. You are paying EBAY fees on the sales tax that the buyer is paying, which EBAY is collecting and remitting to the state for you. I think I have said this correctly.

[Exhibitman]

Originally Posted by mainemule

One of the reasons your % of fees changes is the amount of sales tax being added to the payment based on the buyer's home state sales tax rate. You are paying EBAY fees on the sales tax that the buyer is paying, which EBAY is collecting and remitting to the state for you. I think I have said this correctly.

Which actually isn't a bad deal, since you might otherwise have to file and remit sales tax in up to 50 jurisdictions. Having them manage the sales tax for me takes huge headache out of my sales tax returns.

[thecatspajamas]

Originally Posted by Exhibitman

Which actually isn't a bad deal, since you might otherwise have to file and remit sales tax in up to 50 jurisdictions. Having them manage the sales tax for me takes huge headache out of my sales tax returns.

Ebay now collects and remits VAT (Value Added Tax) on sellers' behalf as well when shipping to the UK, regardless of the item's value or point of origin, only it doesn't appear on the seller's invoice like sales tax does. You have to look for it in the downloaded sales reports. Whooee, and I thought Tennessee sales tax was high!

Anyone had to deal with VAT for non-eBay shipments to the UK yet? Not sure it would be worth it for me to register for a VAT number and file quarterly reports (whether I actually have UK sales that quarter or not), so as Adam said for sales tax, I'm happy to let Ebay handle that.