Sales Tax

fenwiki
Contributor
Contributor

Does pay pal remit the sales tax it has collected to the various states?  I never set up anything for sales tax and some states paypal collected and others it didn't....how does it know when/where to collect the taxes?  How does it know when I reach the threshhold to begin withholding sales tax in states that there is a $100,000 threshhold.

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PayPal_Olivia
Moderator
Moderator

Hi @fenwiki,

 

Thank you for your post! Sales tax for payments received through PayPal are the responsibility of the seller. PayPal does not collect taxes on your payments (though eBay does do so under some circumstances). To determine what your reporting and tax payment requirements are, you may wish to consult with the IRS and/or a tax professional.

 

I hope this helps!

 

Olivia

 

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