why is CA sales tax shown as a separate transaction?

_sun_
Contributor
Contributor

I'm not certain of this, but as a buyer it appears that out-of-state purchases now appear as two transactions, one for item price and one for CA sales tax, but in-state CA purchases appear as one transaction (tax included). Is this correct?

 

Thanks.

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@_sun_ 

 

Depends on how the marketplace/merchant site you bought from set up the payment processing with PayPal. PayPal themselves are not responsible on how that is set up. The merchant/marketplace elects how that is set up and instructs PayPal to process payments in a certain way.

 

I would imagine that likely marketplace sites (ebay, Etsy) with a multitude of sellers have a special way of handling sales taxes (where it has to be separate charges because the marketplace operator is responsible for reporting and remitting the sales tax, not the individual seller) as opposed to individual or sole company merchant sites.


Kudos & Solved are greatly appreciated. 🙂

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@_sun_ 

 

Depends on how the marketplace/merchant site you bought from set up the payment processing with PayPal. PayPal themselves are not responsible on how that is set up. The merchant/marketplace elects how that is set up and instructs PayPal to process payments in a certain way.

 

I would imagine that likely marketplace sites (ebay, Etsy) with a multitude of sellers have a special way of handling sales taxes (where it has to be separate charges because the marketplace operator is responsible for reporting and remitting the sales tax, not the individual seller) as opposed to individual or sole company merchant sites.


Kudos & Solved are greatly appreciated. 🙂
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_sun_
Contributor
Contributor

Makes sense. Thanks for your thoughts.

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