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PayPal fee charged on sales tax

New Community Member

PayPal fee charged on sales tax

Hello, In the PUA i cannot located language which provides PayPal the right to its fees on sales tax collected from the buyer. I as a seller, must collect sales tax in certain states and submit monthly returns and pay the sales tax in full to the State. When I called my State DOR that I wish to reduce the liability to be paid by the amount PayPal charged me the State informed me it is illegal for PayPal to charge their fee on the sales tax collected. How do other sellers manage this issue? Thank you

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2 REPLIES 2
Advisor

Re: PayPal fee charged on sales tax

Paypal just like credit card processor charges a fee on the total amount received.

your state staff does not kow what he is talking about.

when you goto a store and by something with your credit card,merchant pays fee for the total amount charged.

chalk it up to business,mark up your price to compensate for that,also you get to use the sales tax proceeds before you remit to the state.  

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Contributor

Re: PayPal fee charged on sales tax

I think it's Nevadasmith that doesn't know what he is talking about. No company in the US charges an additional fee to collect sales tax. I go to McDonalds and buy a burger for $1.99 and McDonalds adds state tax to my purchase. In VA it's 4%. McDonad's- like all companies other than PayPal- do not then add the tax and the apply an additional 2.9% fee on that total. Worse- Paypal is making revenue by charging you fees for taxes you do not collect or receive. Ebay collects these taxes on your behalf- so it would make legal sense that they charge on the full amount in terms of final value fee. PayPal never sees these tax funds but makes profit on them. How is that legal?