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I recently sold an item on eBay, and when i checked the money I had received on paypal it was a few dollars less than I was expecting. And when I made the calculations I noticed that the person paid taxes and eBay retained the amount, but paypal has charged the 2.9% off the total amount the customer paid ( including the tax), not what I received ( amount sold + shipping). That is not right.
Yes, PayPal does that. Its industry standard that payment processing fees include sales tax. It does not get parsed out. Its just that internet sales tax at marketplaces is a recent 'thing' and micro businesses and private/diy sellers are not used to it and think its wrong/illegal when it really isn't. Processing fees are calculated on the entire amount processed (item price, s/h, and sales tax).