Ebay-Managed Payments Will They Need.

Um.....I would be pretty sure that the reason ebay went to the considerable trouble of adding the tax collection aspect to the platform is because they need to assist collecting the tax or risk running them and sellers running afoul of tax authorities.

If you are a BC seller of anything on ebay or off and sell to a customer in Ontario, you need to collect and remit Ontario taxes unless you are small enough to be exempt. Pacificoin I suspect that ebay is protecting you as a vendor from the risk that US authorities go after you for selling to US residents without remitting proper US taxes. Why do you think that this is going to end up in class action lawsuit? Who is being inappropriately damaged here? All that has happened is that a loophole that let Canadians (or anyone else) sell into the US without collecting sales taxes has been closed.

@Pacific - It may be worth contacting your bank on what the hold up is, I use tangerine and I have been receiving same day transfers (money moved from ebay to bank on Tuesday, both weeks so far).

After 2 weeks, I have been about 40% volume of sales in US, 60% Canada, still saving money, but a little less than before. Now about 0.7% (13.35% vs. 14.04%), so still a savings but "international fee has an impact and previously I did not factor out multi item transaction fee savings. Overall still happy with ease and no issues yet. This is after 52 transactions, so it seems like a big enough number to feel confident about it. Though it has been helped along with some high price point items, which further reduces the overall transaction cost percentage a bit.

@Smallcentguy - ebay is not doing it like everyone else, Heritage, Stacks, Canadian Numismatic Company, etc... do not charge tax, then a buyers premium. I could be wrong on this, as I have not sold with them, but I highly doubt their % of sale price is taken after they add the buyer's premium (they take a cut off bid and charge a BP). Yes Visa charges on total transaction value, but theirs is only a few percentage points, like Paypal was, it is not 12.35%.

The infuriating part is ebay's "logic" for doing it...



If enough people push back, they may change their policy as the rational that it is "simpler" does not hold water. It is a complex algorithm with all the tax laws, but ebay chooses which field they reference (before tax or after tax).

It will be interesting if people start to add a " ebay tax surcharge/premium" to their invoices. Depending on your margins, a 15% tax jurisdiction and ebay taking 12.35%, could significantly cut your profit margins.