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I called customer service and spoke to the highest-ranking supervisor about being charged Paypal fees for money that we NEVER see, i.e., sale tax. Sales tax is handled (depending on state requirements) BY eBay, THROUGH eBay, and NEVER, EVER seen by sellers. Why is Paypal taking MORE money from us using sales tax as the catalyst???!!!
He said he couldn't do anything about it so I asked for a name, email, or phone number of someone else in a different department that COULD help. He told me that I should leave comments here because they look at them "from time to time" and if there are many calls or comments about an issue, it will eventually make its way to the back office and be discussed.
I am asking you sellers out there to contact Paypal and ask this question: "Why are eBay sellers getting charged Paypal fees on money that we NEVER see?!"
Here's my example:
Sale of item: $40
Shipping: $20
Total monies received by me: $60
eBay closing costs: $4 + $2 = $6
Sales tax: $2.20 - handled by eBay with the buyer
Paypal sees the total WITH the sales tax: $62.20
Paypal fees: $2.10
ACTUAL total of monies I received: $60
Fees I SHOULD be charged by Paypal: $2.04
$0.06 may not look like much but it ALL adds up!
I beg of you, please contact Paypal and let's get this issue resolved. We're already paying enough in fees to eBay and Paypal on actual monies we receive. Why should we pay MORE on money we NEVER see???!!!
Thank you.
Fight4urRights
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Thank you so much for your reply, sharpiemarker. I'm a pretty new seller so I wasn't aware this was a topic that has been previously discussed. Nothing came up in the search I did.
Wow! I just read through a lot of those links you attached. More info I wasn't aware of because I don't do returns.
I appreciate your input and knowledge. I will consider this as "solved" since there's not much else we can do except flap our gums without getting a resolve.
Take care.
Fight4urRights
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This has been discussed many a time. Sales tax is just like shipping costs. It doesn't go to you either but yet you still get charged PayPal fees on it. PayPal doesn't parse the amounts on what to charge PayPal fees on. You are paid X amount by the customer and the ENTIRE amount gets processed, its part of the service. Its a rising cost of doing business. Talk to your congressman about it. They're the ones that instituted the sales tax scheme. I talked to mine and you just get a bloody template response talking about basically its not fair to the brick n' mortar business that do charge sales tax, boo f'n hoo, so ya can't win. And get this, think of all the times friends and family option has been abused for transactions that are supposed to be goods and services so everyone fleeces each other.
The more interesting discussion is how eBay is incorrectly refunding sellers and buyers on this sales tax when doing partial refunds or refunds on orders where the shipping is not taxed.
Refund discrepancy Ebay vs. Paypal
Kudos & Solved are greatly appreciated. 🙂
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Thank you so much for your reply, sharpiemarker. I'm a pretty new seller so I wasn't aware this was a topic that has been previously discussed. Nothing came up in the search I did.
Wow! I just read through a lot of those links you attached. More info I wasn't aware of because I don't do returns.
I appreciate your input and knowledge. I will consider this as "solved" since there's not much else we can do except flap our gums without getting a resolve.
Take care.
Fight4urRights
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I recently figure out this fee and find a discussion in the community.
The problem itself is remained unsolved.
It's sad that we can do nothing about it now, but we should come up with this problem and make PayPal be aware of it.
Fees being charged for the amount of SALES TAX Ebay is collecting for each sale

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