The problem is not that the payment processing fees are charged on the full amount including sales tax (like all payment processors do), but that ebay also takes final value fees on the sales tax, which is dirty pool IMO.
But until/unless someone with standing takes them to court/arbitration over it they can charge whatever they want.
The amount we get charged as a FVF on the sales tax is rather small, but if a court ordered them to stop, they would simply raise their FVF a small amount to still end up with the same total fee. They are going to get their pound of flesh one way or another.
If the choice is between ebay getting a slice of the sales tax they collect or having to register and manage tax payments for the several states where I hit the wayfair standard myself, I'm happy to pay ebay.
My ire remains with the state legislatures who decided that they could tax these sales at all on the "marketplace" theory.
Quote: Its similar in the UK with fees, they are VERY high on low cost items.
Is there a better way?
Lower priced items I sell go into my HipStamp store where its still possible to come out ahead, even though PayPal recently raised their fees (in response to which, so did I).
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Posted 11/04/2021 4:43 pm
