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So now, all of a sudden (maybe as of 11/1/19?) many more of my sales are being charged tax. I have no problem with that. But PayPal is taking my sale, adding tax, then taking the fee from THAT total, then paying the full tax to the government. For most of my transactions, that's just a couple of pennies, but that adds up! That's just wrong! Why is that happening now? The seller shouldn't basically be charged tax, it should be on the buyer!!! And I can't figure out the category to report it to PayPal via email and if I tried to call now, I'd end up not in the U.S. Example 7.64 + .52 tax = 8.16. PayPal fee .54? Then PayPal pays the government .52, which basically means the buyer paid .52 tax and I paid .02. If that happens every transaction, not acceptable. Please check your totals and let me know!
Are you selling through a marketplace who charges the tax for you and remits it to the gov depending on their set up or via your own website with PayPal buttons/PayPal integrated checkout? You have to check your settings. PayPal shouldn't be charging sales tax for you on your orders unless you set up the sales tax tool to charge tax to your customers. And yes, PayPal charges the fee on the entire amount received whatever is included (shipping, handling, sales tax, item price) because they are moving the entire amount from buyer PayPal account to your PayPal account.
I made zero changes between October and November in my eBay listings, and had no tax information set up whatsoever. Ebay and PayPal made the changes, and they should not be taking extra fees from me for taxes they are paying to the government. And if PayPal changed their policies and percentages it should be reflected in their fees page, which still just says 2.9% on item + .30. Says absolutely nothing about taxes and that the seller will be responsible for some of the cost now. I'm sure that some states changed their laws on online sales, as only some sales (i.e. TX) are being charged tax. I think their formula is set up incorrectly and someone needs to call them on it. It's one thing to take or keep the fee for something I'm doing, but to take excess fee for something eBay or PayPal is doing? That's just plain wrong.
HYPOTHETICAL: A 6% tax on sale of $800 is $48.
Paypal charges (2.9% x $848)+$0.30 which is $24.89.
This should be (2.9% x $800)+$0.30 which is $23.50.
Effectively, Paypal is charging me [Removed. Phone #s not permitted] for THEIR obligation to collect and remit $48 tax money.