What is eBay doing to Sellers?

I’m still trying to figure out eBay’s new fees and charges. It appears that sellers are now having to pay the state sales tax for the buyer. I sold an item for $420 via auction. The winning bidder is in California. Her sales and CA county tax combined is 7.25%. In my itemized sales report eBay shows a sales tax fee of $30.45, plus my shipping charge for a “total” of $453.45. After all their fees and whatever they do, I have $352.75. It looks like they added her tax amount onto me and then charged their fees on that amount. Also, am I to pay her taxes?? This is confusing. I can’t find a break-down explanation of what they are doing. I definitely kept more of the winning bid before they started doing this managed payments thing. Does anyone know how this works?

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Here is eBay’s statement of charges/fees. Even though it says I keep $364.20 after all fees, the amount they sent to my bank account is $11.45 less than this amount. What did they do with the $11.45??

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That seems odd to me, that they would take sales tax from you. Maybe eBay is paying it to the state for you and claiming it… now how would that affect how you would file taxes? I know business are suppossed to pay sales tax etc and file quarterly etc but for each state? These selling platforms like eBay and Etsy were designed kinda as a way for normal people to sell stuff like hobby things or garage sale stuff now they are discouraging that by complicating everything with fees, forms etc. regular people don’t have time to deal with all that as it’s usually just been a way to supplement income a little to get by.

So frustrating and discouraging.

I hope eBay is paying thier taxes. I wonder how much the company has changed since it started cause it seems to have gotten super impersonal

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My husband just asked me the same thing. I do not have a store front, I don’t have a nexus in any other state, so why am I paying fees on the buyer’s taxes and possibly having to pay them at tax time?

It’s gotten ridiculous. People who want to sell garage sale type items are going to have a hard time, because they don’t have a receipt for whatever they paid for it years ago, and so how will they be able to prove they didn’t make a gain on selling it?

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But isn’t that the whole idea of what people are trying to do? Make gains? I mean if you bought something fir a quarter at a garage sale five years ago and clean it up and sell it for $1.00 your losing money because of time and effort and inflation :woman_facepalming:t2:

I think the government is trying to keep us from getting ahead or making money but when the economy is down they don’t understand why people aren’t spending money!

Like when you buy a used car and register it you have to pay sales tax… someone already paid sales tax on it when they bought it originally

And the housing market right now… houses are selling for way more than they are worth and there will be a lot of people in trouble trying to keep up on payments and then when it’s time to sell they won’t be able to get what they paid for it. I’m predicting a lot of foreclosures in the future. I’m seeing people who have rented for years looking into buying a house. It’s so weird

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The way it looks from what I have sold, they do collect the tax from the buyer and then subtract it from us… They remit on our behalf or if you are a registered business and have the certificate Nevin suggested for the wholesale site, you can choose to pay the tax yourself. They collect it, but you keep it and have to file. You might be able to put in which states you are responsible for. I cannot remember exactly. At least that is what came up for my account. I did not think they were supposed to calculate final value fees with that included. I am going to have to take a closer look. You are right about netting less than before this managed payment business.

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So, the amount that is missing after their total fee amount (which they do not account for in the seller statement), is that the taxes they are withholding that I will have to pay on? For the order I described above, $11.45 are missing and not in the amount they sent to my bank account. So, is the $11.45 the taxes that will go into the 1099 they will send me early next year?

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I am not sure I understand. Are you asking if the sales tax that ebay collects from the buyer and deducts from our payout will show up as income on the 1099?

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No, after they deducted their “total fees” from my total sales, which included the tax amount the customer had to pay, they did not place the total remaining amount in my bank account. There is a $11.45 missing from the amount. Every time they send my payout to my bank, it is always a certain percentage short of what the total is after their fees. If that makes sense. Wondering if this missing amount with each sale is what they are deducting for me to record on my taxes.

I have no idea. I did not get time today to look. Would not surprise me if there is some fee sneaked in. Like that stupid fee I got charged for having an international buyer.

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My husband was wondering if they are sneaking money out on the side before they send the payout to the bank, and not mentioning it so that sellers will not notice. It’s not accounted for anywhere on their invoice they give you where they itemize all costs and their fees.

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OMG I do not mind selling internationally, but I just got another international bidder fee that literally wiped away anything I gained by this person bidding. And the person that used the third party mail forwarding a month ago to get around my US/Canada only shipping has still not got their item though it was delivered to the forwarding service two days after the listing ended.

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I feel so bad for you! This is just so wrong. That they don’t care makes it even worse.

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Are you responsible? It got to where you shipped it :thinking:

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I hope that I am not responsible for it now, but as we all know buyers can file chargebacks with their credit card company and tie money up.

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It’s almost like eBay is forcing us to accept international shipping and use their global shipping program, and if we do not then they allow these folks to slip through with their shipping addresses and do nothing about it. They don’t even address it.

Exactly, and I am very grateful and appreciate my international customers, but I should be able to choose which items get shipped out of the US and which do not and I certainly should not be charged for an international bidder- the bidder who rents a box for the purpose of providing a US address to circumvent my wishes and possibly their own country’s taxes and customs fees, should be charged this fee not me. Apparently this was in the updates that brought in managed payments, no way at all to opt out.

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It makes me so mad, and I feel so bad for you having these terrible experiences.

eBay probably doesn’t care about us walking away because they make so much from their China sellers.

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I do not think they care if we leave. I cannot even follow their policies sometimes I get a notice to ship and the funds for the shipping label are in my account and I can use it to pay for it. Other times I have to use my credit card to buy the label even though my funds are not held anymore. It is not the amount of the item- I honestly cannot figure out what it is. And I also have no encountered what you said about your payout not adding up correctly.

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So weird. Seems there’s some serious inconsistency going on.