Why am I being charged PayPal fees on the sales tax that my buyers pay?

sfxwizard
Contributor
Contributor

Why am I being charged PayPal fees on the sales tax that my buyers pay?  I do not get to keep this money, I did not request that the buyers pay this money, and I do not even want my buyers to have to pay this money..., why am I being required to pay fees on it..?  The buyer's state gets that money, their state is the one requesting the money, and their state is making them pay that money, it has nothing to do with me, so why is PayPal taking money from me for it?  I understand that it is a small percentage, but over time it adds-up, and my margins are already very small to try to compete with bigger sellers..!  It's bad enough having to pay PayPal fees on the shipping charges, which is an expense that I then have to pay, but then paying PayPal fees on the buyer's taxes, that is just not right..!  If the buyer's state is getting, requesting, and requiring the tax money, then their state should be paying PayPal the fees for collecting it, not the sellers..!!  Is that not logical..?

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14 REPLIES 14

gaf-_-r
Contributor
Contributor

The question is: are the sellers aware of this extra slice of money being siphoned off their profits? I would guess not many are and the power of small numbers means PP are gaining another big income over this sneaky and very unfair practice.

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sfxwizard
Contributor
Contributor
So, from what I can see, there are lots of people who are upset about this, but this has still not been resolved or addressed yet... I have not gotten a good answer from PayPal or any representative of them yet, so it is still not solved... Still waiting for a good answer to this one PayPal...
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Dennise2
New Community Member
I just think we are all powerless against the unfairness of this policy. This and the refund policy are major issues for many of us. Unfortunately we have little recourse...
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hulkhauler1
New Community Member

I know this seems unfair but if you had a brick & mortar store in a state that charges sales tax you would have the same problem with whatever credit card company you used. I live in Wa and our tax is 10% and every transaction I do has that fee on the tax.

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sfxwizard
Contributor
Contributor
Well, that depends on how you conduct business in your Brick & Mortar store. You don't have to pay any fees on cash or checks that you receive as payment for your products, and you can also charge the customer a transaction fee for using a card, like many small businesses do. You can also factor that into your price when you price the items in your store, as you are not generally competing on an international scale as a small business. The fact is, we as small businesses on eBay are competing internationally against the likes of Amazon, Walmart, Tesco, and Alibaba.., and we cannot add those kind of buffers into our prices and stay competitive! The point is that PayPal is collecting that tax money and delivering it to the individual state governments, not to us, we don't get a penny of it..! Those state governments should be paying the PayPal fees for the money that they get from PayPal, just as we are paying PayPal for the money that we are getting from PayPal... PayPal should just deduct their fee from the total amount of money that they deliver to the state, at the time of delivery, be that monthly, annually, or whatever. If the state doesn't want to pay for PayPal to collect the tax money for them, then that state can pay to design a system to keep track of it themselves, and then they can bill us directly for the amount of taxes we collected for that state, but don't make us pay PayPal for the work that PayPal is doing for them..!
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