OT: Did you know that Paypal includes the sales tax when calculating their fees?

[Fballguy]

Originally Posted by egbeachley

PayPal charges their fees based on the amount transferred. Was the sales tax part of the amount that was transferred?

Should they not fulfill the sales tax transfer and allow you to make a separate payment to the State Taxing Authority?

We already paid the sales tax to eBay...Why would there be another sales tax for being paid? <<< Redacted

Nevermind...I misread the OP. But if you're going to be upset about the pennies being added to your fee by the sales tax...You should really be PO'd that their calculating your fee on the gross amount when you're only netting 90% of the sale price.

[savedfrommyspokes]

This change was announced months ago....I have been collecting sales tax and remitting in my home state for years and all the while PP has been charging that same 2.9% on the sales tax that I collected. So, this is not a surprise. Obviously, with nearly 30 states now in play that have their sales tax collected via ebay, the cost of paying this fee has increased 25x (or more). However, based on my average transaction amount and the percent of transactions that I am now covering this extra 2.9% cost on, it will cost me on average of 3 cents additional per payment.

I raised my s/h cost by 5 cents.

I reason that this extra PP fee will cover cost of someone other than me having to handle the remitting all of these sales taxes collected to all of these different states/municipalities.

[D. Bergin]

Death by a thousand cuts. Paypal also stopped refunding your fees when you refund a customer for almost any reason whatsoever.

I switched from a traditional merchant account over to a full service Paypal merchant account years ago because the Paypal fees were much more straight forward and less onerous for a smaller business such as myself.

Paypal slowly gravitating towards the torture by additional fees business model.

Ebay Managed Payments not any better (likely much worse), so you just have to swallow the pill and hope you're not just living in a simulation for the rest of your business life.

[rjackson44]

stick to b.s.t

[sb1]

FYI Ebay also adds the shipping before calculating the sales tax...so you pay sales tax on the shipping as well.

[MikeGarcia]

Originally Posted by sb1

FYI Ebay also adds the shipping before calculating the sales tax...so you pay sales tax on the shipping as well.

..So if I offer ''free shipping'' as a seller , but sneak in an extra $3 or $4 onto my BIN price, am I guilty somehow of tax evasion ? Seems like a wash.....how long until 'free shipping' becomes illegal.?
..

[sb1]

No...it's the total of sales price and shipping, so whatever the total is, is the amount they add for and collect on the sales tax.