Ebay charging their commission on VAT & Import charges on International Sales
Summary: Una discusión en el foro aborda el tema de eBay cobrando comisión sobre el IVA y los cargos de importación en ventas internacionales. Aunque los mensajes originales no contienen contenido específico, se puede inferir que los participantes, incluidos datsunpartsinoz, gutterpunkz05, y varios otros, discuten preocupaciones o experiencias relacionadas con estos cargos adicionales. La discusión involucra múltiples respuestas entre varios usuarios a lo largo del tiempo, lo que sugiere un interés continuo y posiblemente experiencias variadas sobre cómo eBay maneja estas comisiones en las transacciones globales. Esto podría indicar inquietudes sobre las políticas de eBay y su impacto en las ventas y compras internacionales.
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
violetstrendz
·2 years ago"I find it very unfair that I have to pay a fee on VAT. Because of this, I have decided to stop selling to customers in the UK. It's not worth the hassle and the small profit I make after being charged a fee on VAT. I can't believe this is happening on eBay."
Has anyone challenged this?
Kazza
davewil1964
·2 years agoNot me. I am not foolish enough to submit to the vagaries of International postage. And I don't sell items that are conducive to same.
If I was to sell overseas, I would certainly be up with what charges I would be incurring for postage and factor them into my pricing.
sugar249
·2 years agoLook up the 1000 post on this subject, and at least 600 have said they are going to ACCC, judge Judy and every other option. You signed up to the terms and conditions.
violetstrendz
·2 years agothis is something NEW that's been happening to my overseas sales = after years on the platform this is the first time it has happened.
countessalmirena
·2 years agoThank you, kopenhagen. 🙏🏻🤗
It puts our 10% GST in a kinder light…
There’s no suggestion there that Danish customs gave some sort of super price database for all items. If there is such a thing, it is kept sub rosa, apparently.
siddieswans
·2 years agoWhen I said a long time ago, it would probably be 15 years, maybe more. From what the buyer said, it seemed to me that they had one of those Price Guide books - they had a list of B & G design numbers, checked his, and said "that's what it's worth, that's what you pay duty on."
sugar249
·2 years agoOr the buyer was just trying to get you to feel sorry, and refund a few dollars
countessalmirena
·2 years agoThis is far too nuanced a situation. Many items simply can’t be valued ad hoc by a government, while others can readily be valued.
I don’t know enough about the Danish system other than to offer that view. Does kopenhagen have any inside knowledge about this?
[puts out an APB for kopes]
kopenhagen5
·2 years agoAll I could find on this.
VAT. You must pay VAT of 25% on all goods purchased in countries outside the EU. VAT is charged on the total amount payable for the goods, shipping costs, customs duties and any other duties. You pay VAT either when the goods arrive in Denmark or in the webshop where you buy the goods.
countessalmirena
·2 years agoI 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
·2 years agoReally, 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.
canuckpinkprincess
·2 years agoI 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.
violetstrendz
·2 years agoI think its disgraceful that they take a fee off the VAT - I just had a sale and I made $4 of the item. I wont be selling to o/seas customers again. What I can't work out is, that this is the first time I've seen VAT charged on any of my sales to the UK.
sterling*n*steel
·1 year agoTotally agree. I was stunned to see a price I knew nothing about added to my sale then to see I was charged a variable percentage on this ghost fee that the buyer had already paid to Ebay!!! ... talk about collecting twice!! Ebay got the $30 vat fee from buyer + 12% to 14% of that
My item sold for $100 + $25.46 postage= $125.46
Vat fee paid to Ebay by seller $25.36
Ebay says my total sale came to $152.16 so takes fees .. transaction fee $22.36 + postage label $25.46 ... I end up with a little over $77 !
I know Ebay gets huge discounts from postal services for using them .. so the postage probably only cost $5 and charge me $25.46.
We need a new selling platform that takes honest fees.
sugar249
·2 years agoits 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
·2 years agoThe fee applies to the total invoice, plain and simple, does not matter if it has only just come to your attention.
datsunpartsinoz
OP2 years agoGday
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
·2 years agoThere 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.
sterling*n*steel
·1 year agoHe is talking about VAT
davewil1964
·1 year agoebay adds the sales tax on top
I believe that covered your point, 14 months ago.
gutterpunkz05
·2 years agoTotal invoice, includes all taxes, duties etc, as per UA.
actionmanmelb
·2 years agoI 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!
sugar249
·2 years agoNot sure who told you this, a good business person factors in all their costs (including fee's). They also work these out prior to selling, so not sure why you just found out. No shocks really
datsunpartsinoz
OP2 years agoRelating your reply to my original question.
I agree with you that you have to factor in all costs.
The problem with a commission on any import VAT is that collected from the buyer it is NOT part of your sale.
Ebay add this on AFTER the sale and you don't know how much or if there is any until after the sale.
Since this happened about a year ago, I have lost a few overseas sales after advising buyers that I have a allow an extra amount to cover it.
And I have had to pay a few extra fees as well on some sales
I still don't believe it is fair or - more importantly - good for business as usually the Buyer cant understand it and often thinks the buyer is trying to rip them off!
Finally, I have just sold some items to Finland and their Tax office won't accept the Buyers paperwork from ebay that shows he has paid the 30% Import VAT and are insisting that he pays it again. Ebay response to him - not our problem! Work that out ....
Thanks for your replies
Simon
datsunpartsinoz
OP2 years agoAn update this one.
After a bit of pushing Ebay have refunded the Buyer the VAT they collected as Finnish post didn't accept the ebay paper work that showed he had already paid it.
BUT - of course they have not refunded the Commission they charged me on the VAT!
Nor did they tell me about the refund - the buyer told me that.
So their systems are not really strong.
They buyer is really annoyed at ebay over this and say he will use Marketplace to buy items in future, so these practices of ebay DO affect us all as ebay sellers!
Now to chase up ebay to geet the refund of the extra commission they charged me ...
sugar249
·2 years agoGood luck to the buyer on marketplace, or better known as scam central.
siddieswans
·2 years agoFound on the US board dated 02-23-2023
"I found out that the EU only lets eBay collect VAT for a sale up to EUR 150.00 total.
Anything over that the buyer has to pay the VAT when it arrives in their country.
France is the only exception to that rule."
Don't know if that actually was the case or whether it still applies now. Or if your sale was over EUR 150.00 (including postage cost.) If it was that may help explain it. Of course you could say that eBay should be across all these different Customs rules.
Years ago I sold a piece of vintage Danish ceramics to a buyer in Denmark who was thrilled at what they considered a great bargain auction price - on-one in Oz had been interested. They were not so thrilled when it arrived at Denmark customs. Despite my having included the eBay invoice showing the value of the sale, they discovered that Denmark Customs had their own value sheet for such items, and they were charged duty on that value. No idea whether this practice still continues.