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mpr09
Community Member
Posts: 17
Registered: ‎27-01-2011

Final value fee credit after partial refund

After giving a partial refund of quite a large amount on an item will I not receive a final fee credit proportionate the the refund given? 


 


I've spoken to customer services and she simply said I can only get final value fee credit "If issue was resolve within Seller Make It Right period and you have issued full refund"


 


that doesn't seem right or fair, I've effectively sold an item for £60 after giving a £40 refund yet still paying the original £10 final value fee, that just seems ridiculous.

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mrgum
Community Member
Posts: 1,144
Registered: ‎02-11-2010

Re: Final value fee credit after partial refund

in reply to mpr09

But i'm afraid that's the way it works, it's the same as selling items new from a shop, if a buyer trades in a machine and you allow say a 10% discount off of the new machine price you still pay the VAT on the full amount/price of the new machine. So if you take £90 from a customer for a machine that was £100 new you still pay the tax on the £100.


It's your choice to refund or in the shops case to give a trade in allowance.

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ianwhorlow
Community Member
Posts: 6,536
Registered: ‎26-04-2008

Re: Final value fee credit after partial refund

in reply to mpr09

Yes that is correct, although i do not understand why you paid £10 FVF as it is normally only 10% of the selling price.

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mpr09
Community Member
Posts: 17
Registered: ‎27-01-2011

Re: Final value fee credit after partial refund

in reply to mpr09

The final value of the item sold was £100, so my final value fee was £10. I then refunded 40

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ianwhorlow
Community Member
Posts: 6,536
Registered: ‎26-04-2008

Re: Final value fee credit after partial refund

in reply to mpr09


The final value of the item sold was £100, so my final value fee was £10. I then refunded 40



 


I understand, just could not see anything you had sold for £100:-)

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jh-middlesex
Community Member
Posts: 437
Registered: ‎20-07-2012

Re: Final value fee credit after partial refund

in reply to mpr09

Ebay dont advise sellers to do Partial refunds so they are not going to suport it with fee refunds either

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2beor02bmerlin
Community Member
Posts: 1,429
Registered: ‎13-02-2009

Re: Final value fee credit after partial refund

in reply to mpr09


But I'm afraid that's the way it works, it's the same as selling items new from a shop, if a buyer trades in a machine and you allow say a 10% discount off of the new machine price you still pay the VAT on the full amount/price of the new machine. So if you take £90 from a customer for a machine that was £100 new you still pay the tax on the £100.


It's your choice to refund or in the shop's case to give a trade in allowance.



 


 


Maybe True, but unfortunately Totally irrelevant.


 


A Trade in allowance has nothing to do with a discount to match a competitor's price, for instance.


 


£100 less £10 discount is £90 and THAT is the amount on which the Seller will pay his taxes (including VAT)


 


 


 


Merlin

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mrgum
Community Member
Posts: 1,144
Registered: ‎02-11-2010

Re: Final value fee credit after partial refund

in reply to mpr09


 


 


Maybe True, but unfortunately Totally irrelevant.


 


A Trade in allowance has nothing to do with a discount to match a competitor's price, for instance.


 


£100 less £10 discount is £90 and THAT is the amount on which the Seller will pay his taxes (including VAT)


 


 


 


Merlin



 


Who mentioned anything about matching a competitors price?


Not totally irrelevant at all?


You pay Ebay fees on total sale, if you refund it doesn't matter fees are the same.


If a shop takes a trade in appliance for a new one and the new price is reduced the VAT (fees) are paid on the total purchase price prior to the trade in .

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ianwhorlow
Community Member
Posts: 6,536
Registered: ‎26-04-2008

Re: Final value fee credit after partial refund

in reply to mpr09

Ebay to one side for the moment. From a business/accounts view i would see an exchange as two separate parts. One, you have purchased the exchange  unit for the agreed exchange amount and two, you sell the new item for the original price. So the VAT would be payable on the original price.


I think im agreeing with Mr G:smileysurprised:


 


:^O

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mrgum
Community Member
Posts: 1,144
Registered: ‎02-11-2010

Re: Final value fee credit after partial refund

in reply to mpr09


I think im agreeing with Mr G:smileysurprised:


 


:^O



 


Hey up !!! not been here before have we ? :^O

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ianwhorlow
Community Member
Posts: 6,536
Registered: ‎26-04-2008

Re: Final value fee credit after partial refund

in reply to mpr09


 


Hey up !!! not been here before have we ? :^O



 


I guess it had to happen sometime:^O


 


Although you will be pleased to know that i might be having second thoughts. I looked at an old invoice of mine from years ago for a car i purchased and part exchanged on. The invoice shows the price of the car i bought minus the part exchange value and vat was paid on the nett amount?


Would really like somebody in the know to provide some wisdom.

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mrgum
Community Member
Posts: 1,144
Registered: ‎02-11-2010

Re: Final value fee credit after partial refund

in reply to mpr09

Nett is the amount that VAT is paid on yes (Nett = total minus VAT), but the nett figure it should be on is the price the item was advertised at ie. £2,500 inc vat, the seller pays the VAT content of that figure (£2,500) in tax even if they allow £1,500 for a trade in and you give them £1,000 cash. It's the way it is done, if anyone does any different they're cheating the tax man (unless there are different rules for certain  businesses) and a tax inspection will soon put them right.

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r1j2e3s4j5
Community Member
Posts: 4,087
Registered: ‎31-12-2011

Re: Final value fee credit after partial refund

in reply to mpr09


After giving a partial refund of quite a large amount on an item will I not receive a final fee credit proportionate the the refund given? 


 


I've spoken to customer services and she simply said I can only get final value fee credit "If issue was resolve within Seller Make It Right period and you have issued full refund"


 


that doesn't seem right or fair, I've effectively sold an item for £60 after giving a £40 refund yet still paying the original £10 final value fee, that just seems ridiculous.



 


None of this is anything to do with paying Tax so not sure why Tax has been brought into it.


 


Ebay take a fee when you sell an item and they are generous enough to return that to you if you take the item back and refund in full.


 


They are not going to go into the ins and outs of working out who wants what amount returning because Mr x and Miss y have done a couple of partials each.


 


That is not how it works on Ebay. They do not encourage partial refunds and most sellers do not offer them nor do they want other sellers to offer them.


 


Whenever a buyer comes to you with a problem never ever give them a partial as all this does is it encourages them to do it again elsewhere.


 


Instead ask for a return of the item for a FULL refund. You will find that most buyers will not bother returning the item because they dont want to pay to return it.


 


The ones that DO return it are the ones who are genuine.


 


Partial talk = "lets see if I can get this item cheaper now that its in my possession and I have feedback to leave as a bargaining tool"


 


 

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2beor02bmerlin
Community Member
Posts: 1,429
Registered: ‎13-02-2009

Re: Final value fee credit after partial refund

in reply to mpr09


Nett is the amount that VAT is paid on yes (Nett = total minus VAT), but the nett figure it should be on is the price the item was advertised at ie. £2,500 inc vat, the seller pays the VAT content of that figure (£2,500) in tax even if they allow £1,500 for a trade in and you give them £1,000 cash. It's the way it is done, if anyone does any different they're cheating the tax man (unless there are different rules for certain  businesses) and a tax inspection will soon put them right.



 


yes, we have heard and understood.


 


BUT if I go into a shop and say "I want to buy that item, but I want a 10% Discount" and the shopkeeper agrees then I pay VAT on the price AFTER the discount has been deducted.


 


Just like when you go into a Cash and Carry place (where they may charge VAT separately from the adverti8sed Price) - when they have a special Offer (like £20.00 less 20% Discount) then you pay the VAT on £16.00 NOT £20.00


 


A Trade in Price has got NOTHING to do with a discount.


 


Merlin


 


 


 

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davidships
Community Member
Posts: 1
Registered: ‎09-06-2011

Re: Final value fee credit after partial refund

in reply to 2beor02bmerlin

My buyer inadvertantly paid postage twice, so I have refunded one, back through Paypal.

 

Are you saying that I am not entitled to a ebay fee partial refund to match?

What do you mean by "ebay do not encourage partial refunds" - do they prefer that we keep the overpayment!?

 

I supopse that is why the page http://sellercentre.ebay.co.uk/final-value-fee-credits has disappeared

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tony4cats
Community Member
Posts: 1,938
Registered: ‎04-11-2006

Re: Final value fee credit after partial refund

[ Edited ]
in reply to mpr09

mpr09 wrote:

After giving a partial refund of quite a large amount on an item will I not receive a final fee credit proportionate the the refund given? 


 


I've spoken to customer services and she simply said I can only get final value fee credit "If issue was resolve within Seller Make It Right period and you have issued full refund"


 


that doesn't seem right or fair, I've effectively sold an item for £60 after giving a £40 refund yet still paying the original £10 final value fee, that just seems ridiculous.


This has been the case since last Aug at least. Ebay have allowed sellers up to 2 refunds, only if you apply for it.It is not Automatic, as it once was.

 

Below is a route to collect those refunds.Note you will only get 2 chances, so only apply for a refund if it is a substantial amount.

This has been posted numerous times on various threads.

 

 

Once you have given the refund through Paypal you will see that Paypal will automatically credit you with the excess fees they have taken.

Make sure that in the comments box you explain to your customer what the refund is for together with the item number because Ebay will check on that one.

Check in your Account summary on Ebay for the item that you have made partial refund on, now in an ideal situation one would expect Ebay to have linked to Paypal and give a part refund on the FVF amount you have refunded, but they don't.

Give it a few hours to make sure.

If it hasn't happened then;

 

  1. CUSTOMER SUPPORT>customer support
  2. SELLING
  3. FEES,BILLING INVOICES
  4. I DIDN'T RECEIVE MY DISCOUNT OR CREDIT
  5. SEND US AN EMAIL

Send an email explaining you have refunded part postage through Paypal and want the excess FVF (state the amount you expect refunded.  eg 10% of £3.00 = 30p) that Ebay have taken credited to your account.  Don't forget to include the item number and buyer I/D.


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tall.dude
Community Member
Posts: 3,216
Registered: ‎07-04-2013

Re: Final value fee credit after partial refund

in reply to davidships

davidships wrote:

 

 What do you mean by "ebay do not encourage partial refunds" - do they prefer that we keep the overpayment!?

 

 


In your case, where postage has been paid twice, there's no final value fee payable on the second payment so no refund required.

 

PayPal will charge you 20p for processing the initial payment and subsequent refund though.

 

eBay used to give partial fvf credits but then discovered that sellers were saying to buyers ''pretend I've refunded you x amount, I'll get the fvfs back and you can then have your widget a bit cheaper''

 

This was in the days before PayPal was mandatory so there was often no way of eBay knowing if any refund had actually been issued.

 

eBay reacted to that by saying it was simple, the fvf is the fee we charge you for finding a buyer for your item at the price you sold it for. If that buyer pulls out and/or you refund him in full, we'll give you back the fvf as a gesture of goodwill.

 

And, however much it galls to admit it, an fvf credit is a gesture of goodwill.

 

However, if you and your buyer subsequently renegotiate the terms of your sale, after we've hooked you up, that's your problem and we're not going to refund a penny of our cut.

 

In any other enviroment that would be considered fair enough.

 

 

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thimbleshackuk
Community Member
Posts: 7,584
Registered: ‎10-10-2012

Re: Final value fee credit after partial refund

[ Edited ]
in reply to mpr09

I feel for you, OP. It's a right royal pain in the derriere, and it's the only selling platform I use where partial refunds on FVFs aren't given. If you need to do this again, then consider taking the FVF into consideration when making the refund, ie. reduce the refund amount to cover it.  Far from ideal, but we're stuck with it. :smileysad:

 

Alternatively, just offer a buyer a full refund on return.

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269287
Community Member
Posts: 49
Registered: ‎23-10-2010

Re: Final value fee credit after partial refund

in reply to mpr09

And lets not forget, you are now charged by paypal to give a partial refund...it has slipped many peoples attention...

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angelah1847
Community Member
Posts: 12,986
Registered: ‎15-04-2012

Re: Final value fee credit after partial refund

in reply to 269287

And let's not forget.......this is a 12 month old thread that was bumped up today at #15 :smileylol:


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