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tax
Summary: shrimpstuff, a professional seller on eBay, expresses dissatisfaction with the taxation of shipping fees on top of the price of the items sold, which he considers unfair. He is looking for advice on how to possibly get this policy changed. francexpressdeal explains that this practice complies with tax regulations and that sites like eBay report gross revenue, including shipping fees, to the tax authorities. shrimpstuff wants to know why he should pay taxes on income he does not actually earn, while francexpressdeal points out that regulations must be applied, regardless of their popularity or perceived fairness.
hello,
I've been a pro seller on eBay for over 8 years.
I am now, because of the changes in the way we are taxed,
taxed on postage as well as the item itself, does anyone else find this unfair?
and why doesn't eBay change the way it calculates the totals it sends to the tax office?
there are other sites that don't include postage, so we don't have to declare it as income.
what can we do to pressure eBay to change this injustice?
thanks
francexpressdeal
Mentor1 year agoHello @shrimpstuff
"there are other sites that don't include shipping costs, so we don't have to declare them as income."
In that case, those sites have a serious problem with the current legislation.
"taxed on shipping costs as well as on the item, does anyone else find that unfair?"
You accepted this calculation by continuing to sell on the site (acceptance of the T&Cs).
So in either case, putting pressure on ebay about these issues will be particularly pointless.
shrimpstuff
OP1 year agoI have no problem paying taxes on the things I sell, but I don't see why we should pay taxes on shipping fees? We don't make any money shipping items, that's not our job, the post office or Mondial Relay does it, and they pay taxes on the profits they make. I don't see how it's fair for the government to be able to tax the same money twice.
francexpressdeal
Mentor1 year ago@shrimpstuff
"I don't see how it's fair that the government can tax the same money twice."
What does the government have to do with the way eBay commissions are calculated?
Why are you talking about "tax"? It's a commission, nothing more and nothing less.
shrimpstuff
OP1 year agoif you sell an item for 30 euros with 10 euros in shipping fees, you have to declare 40 euros of income. so I make 30 euros but I pay taxes on 40 euros. I'm not talking about eBay fees, I'm talking about declaring income. when the tax authorities ask eBay how much I earned last year, they tell them 40 and not 30. that's why a lot of people are moving away from eBay, to avoid paying taxes on money they didn't earn, you see what I'm trying to say? I'm English so my French isn't very good, sorry
francexpressdeal
Mentor1 year ago@shrimpstuff
for your French, no problem.
"if you sell an item for 30 euros with 10 euros in shipping fees, you have to declare 40 euros in revenue. so I make 30 euros but I pay taxes on 40 euros"
No, you earn 40 gross. So it makes perfect sense that eBay gives that amount to the tax authorities.
"that's why a lot of people are moving away from eBay"
Knowing that eBay applies the regulations, it's the same on all sites.
Just a question: in your example ( item at 30 euros + shipping fees at 10 euros), what amount do you declare to URSSAF?
shrimpstuff
OP1 year ago40 euros, -8 euros tax, - 8 euros ebay commission on a sale of 30 euros, minus purchase price 10 euros, so net - 4 euros
francexpressdeal
Mentor1 year ago@shrimpstuff
I think you didn't understand my question (or else I didn't understand your answer...) : what amount do you declare to URSSAF when you make a sale totaling 40 euros (30 euros for the item + 10 euros shipping costs)?