Why are they charging a VAT on total cost? In the US you only pay tax on profit (and can even deduct a loss)? The profit margin on a lot of things people sell on ebay is less than 20% so how does this not kill the resale market in Europe?

As far as I can remember VAT is always charged on the total value (including shipping).
=> Discogs or eBay are applying this rule.

That's how Singapore or Japan or EU tax incoming shipments.
Among EU countries there is no VAT added, only when you cross the border.

So far I've never seen USA taxing an import but this might change as more and more countries are looking for ways to collect extra taxes.

Also, if you are a company, you can claim the VAT back in some situations.
This does not apply for individuals.

Julien

Add one more !!!

I am withdrawing USD to a US USD account... but I'm registered in Japan.

2% withdrawal fees on the net amount (that's 1.66% on gross amount).

So far, eBay+Payoneer is a 18.50% fees proposition to me.

I'll increase again the items I have listed on eBay.

WTF eBay...

Julien

This is partially true.

In some EU countries, like Sweden for instance, you have to pay the VAT rate of your home country when buying from a seller who exports goods for a value of over 10,000 Euros. So for instance, if I buy from Amazon in Germany I pay a 25% VAT instead of the 19%. So basically you'll get a 6% higher VAT which is still very reasonable. Just something a lot of people miss out on.

Stopped selling on ebay when they demanded bank details a few months ago. Nope. No thanks. Bye Ebay. Hello Gumtree.

And checking a recent $375 sale on eBay, they took higher fees on VAT + shipping, then Payoneer took another 2%.

Total in fees: almost 21%

We are getting near the 30% "abusive" Apple Store fee that most companies are now fighting in court.

Julien

Take the (volatile) orange pill.