What the Tax????!!!!!

CobbSpikedMe · #1 10-09-2019, 05:29 PM

How could Paypal know if the seller already charged sales tax on their own and the buyer is already paying it? That would be double taxation right?

tschock · #2 10-09-2019, 05:35 PM

Quote:

Originally Posted by CobbSpikedMe

How could Paypal know if the seller already charged sales tax on their own and the buyer is already paying it? That would be double taxation right?

My 'guess' would be that ebay means they will request the total amount (including sales tax) to paypal and paypal will ensure the total (including sales tax) is deducted from the buyer's account. Paypal only 'knows' since that is the total requested by ebay. Otherwise, it's BAU from the paypal viewpoint.

CobbSpikedMe · #3 10-09-2019, 07:08 PM

Quote:

Originally Posted by tschock

My 'guess' would be that ebay means they will request the total amount (including sales tax) to paypal and paypal will ensure the total (including sales tax) is deducted from the buyer's account. Paypal only 'knows' since that is the total requested by ebay. Otherwise, it's BAU from the paypal viewpoint.

Hi Taylor,

I meant when someone sells something off eBay (like on the BST) and the buyer uses PayPal to pay. If the seller charged sales tax then PayPal would have no idea it was included in the amount the buyer transfers.

tschock · #4 10-10-2019, 07:37 AM

Quote:

Originally Posted by CobbSpikedMe

Hi Taylor,

I meant when someone sells something off eBay (like on the BST) and the buyer uses PayPal to pay. If the seller charged sales tax then PayPal would have no idea it was included in the amount the buyer transfers.

Andy,

I think ebay's statement with reference to paypal is only in regards to their interaction with paypal and not a comment on paypal's policy in general. I doubt paypal itself will be in the 'tax assessing' game since they are only processing money transfer requests, but I could be wrong.