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