PayPal fees

[Paulmike]

Why am I paying fees based on amount of item sold AND taxes? I dont collect the taxes or see them at all.

[sharpiemarker · Accepted solution]

@Paulmike 

Are you selling through a marketplace such as eBay, Etsy, or on your own website?

eBay and PayPal for instance used to separate the payment from what will go to ebay for taxes and what goes to the seller and so you don't get charged the PayPal fee on the sales tax but they are ending or have ended that concession. Probably ditto for other marketplaces.

It is just another expense/cost of doing business, build it in to the item price.

In any case, the idea is that PayPal moves the entire amount for you (from buyer account to seller account) as their service and that will include any expenses (shipping/handing/sales taxes) incurred due to the sale hence their PayPal fee calculation is based on entire amount including sales taxes.

[parksfamilyx4]

If PayPal is now basically making us pay part of the state taxes, they need to adjust their page on how much fees are! Right now it says 2.9% on item price plus .30. It says nothing about on the amount of tax too! If we have to pay part of the tax someone should say something! I think it's time PayPal gets reported to the Franchise Tax Board, this is not right to force the SELLER to pay a portion of the tax that is paid to the state.

[aspdiohap]

We're not paying part of the taxes, PayPal is charging a fee on the total price plus taxes, then giving ebay the money for taxes, and keeping the 2.9% fee on the taxes for themselves.  It is not at all a good gesture by PayPal to the sellers, who do all the work for them.  They make so much money, it is ridiculous.  They also keep the 30 cent fee with refunds, like when a buyer makes a mistake and orders the wrong thing, and the seller is charged for that.