Ebay charging their commission on VAT & Import charges on International Sales

[datsunpartsinoz]

Hello all

It has just come to my attention that ebay is adding the value of any Overseas VAT and Import Charges THEY collect from International buyers to the total Transaction amount before calculating the Final Sellers Fee.

I find this rather rude if not illegal.

This is not money the Seller ever sees and is not aware of the amount (if any) until after the sale so can not be allowed for when advising the Buyer of a total cost.  It is too confusing as well as not all countries charge import taxes and when they do it can vary.

Nor is it a service the Seller is providing.

The amount in question can work out be a large percentage of the sale, for example, a sale I did to Greece today is:  Item Price $68, Postage $76 plus Import Tax $34.

So I am out of pocket another $4 on a $68 sale!

This is a Tax that is solely the responsibility of the Buyer that ebay is collecting on behalf of the Buyers country Tax department.

Does anyone else see this as being yet another ebay rort?

I do accept that ebay can charge their commission on Freight & Postage costs added to the sale as that is an action of the Seller and money they collect, these Import taxes are not.

What do other Sellers think?

Has anyone ever challenged ebay on this ?

Thanks in advance

Simon

[gutterpunkz05]

The fee applies to the total invoice, plain and simple, does not matter if it has only just come to your attention.

[datsunpartsinoz]

Gday

I am aware that the Commission is on the total invoice value.

My point is that any import taxes the Buyer is required to pay are NOT part of the Invoice I create for the sale.

Ebay adds it AFTER the sale takes place and collects it from the Buyer to forward to the Buyers Tax department.

The situation I was raising is it is very hard for a Seller to know IF an international sale will attract an Import Tax and what rate it will be.

I assume Ebay are required to do that under instruction from those countries' Tax Department.  So the Seller is being charged a fee for a commercial requirement of Ebay to conduct business in certain countries.

Is that fair? Or even ethical?  That is my point .

Further do we factor it into our Total sale price? 

It would be unfair to the Buyer if we assume ALL countries have Import Taxes as it is my experience they do not with a recent sale to Japan not attracting any such tax.

Taking a guess and adding it to all sales at say 20%  can make it seem to the buyer you are overcharging for Freight and Costs and hinder any potential sales.

So is your answer that I am supposed to just wear it?

Please remember also that ebay charge an extra 1% commission for the honour of making an International sale!

I was asking what other Sellers thought of it and if has it ever been challenged.

Anyway, thanks for your reply

Simon

[eol-products]

There are a few ways that sellers save costs on international sales. One is no gst charged for those sales which can benefit some and discounts available on international postage can be over 20% which can offset any extra fees.

I sell an item for around $10 internationally with a calculated postage price of $38 then ebay adds the sales tax on top. Aust post only charge me around $28 postage due to volume discounts so the savings cover my fees otherwise there would be nothing left from the $10 sale to make a profit.

[sugar249]

its called swings and roundabouts.

set your price to average out slight variations between countries taxes, postage, etc.

ie. in Aus i pay between 9.86 and 10.60 for australian postage,  but on average I get charged the lower amount as most are capital city sales.  so I win some I lose some.  but on average it works out.

Do the same with international sales taxes as eol said no gst,  but you may pay a slightly higher rate for some countries or nothing at all.

As for Ebay fee's,  I am sure people have tried to challenge it,  we get weekly people screaming about the ACCC, consumer affairs, judge Judy and others,  I am sure if it was against the law,  it would have being stopped by now.

At the end of the day, it is our responsibility as sellers, to research all costs involved in a sale.

[gutterpunkz05]

Total invoice, includes all taxes, duties etc,  as per UA.

[canuckpinkprincess]

I fully agree with you.  It's such a scam.  Just another way that eBay is gouging Sellers.  If the amount collected doesn't go to the Seller, then there is no way it should included when calculating fees. 

[countessalmirena]

I do wish that the word “scam” were not thrown about so cavalierly. A scam involves deception; it does not mean the same thing as “rort” or “unfair charge”.

I think the charge on postage is unjustified, and that eBay would have a harder time justifying it now that eBay-purchased postage is not subsidised or includes a discount/financial incentive. Someone who has time and fire in their belly may want to raise this with the ACCC again; that person won’t be me, though.

[sugar249]

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@countessalmirena wrote:

I think the charge on postage is unjustified, and that eBay would have a harder time justifying it now that eBay-purchased postage is not subsidised or includes a discount/financial incentive. Someone who has time and fire in their belly may want to raise this with the ACCC again; that person won’t be me, though.

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Really, come on this has being argued for the last umpteen years Ebay has being charging it on postage.  Surely you must understand why they have to charge commission on postage.  

This is just another chestnut used by people who have no ideas about running a business.

Next you will be saying they shouldnt charge commission on the price you have paid for the goods, and only charge based on your profits.

Ebay is a business,  without them making money there is no Ebay.  Come on be brave you be the one that is laughed at by the ACCC,  oh remember Judge Judy is good fun as well.

[actionmanmelb]

I too just found this out after I sold something in the USA and the payment to my bank was miniscule.

As sellers we are expected to charge postage at cost so we lose 15% there and 15% of any sales tax or vat!