I need help on the charges levied by PayPal when I sell Print on Demand

elysia_bliss
Contributor
Contributor

Hi, 

I have multiple Print on Demand Stores, like Etsy, Redbubble, Teepublic, etc. These sites operate mainly from US, UK, or EU etc. I am based out of India. So to get the money from all these countries, I use PayPal. How many charges does PayPal levy and what happens to the tax amount debited from the customer that shows up on the PayPal statement? what my role/obligations for that tax amount? Do I need to pay this tax again to the US or to India?

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2 REPLIES 2

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@elysia_bliss 


How many charges does PayPal levy”?

PayPal levies their transaction fees on entire amount the buyer paid, plus any currency conversion fees. You’ll find the fees schedule here


what happens to the tax amount debited from the customer that shows up on the PayPal statement?”

The sales tax are paid out to the governments by the marketplace platforms that collects it.

 

PayPal splits up what goes to the marketplace (% commissions they charge you and the sales tax to remit to the government), to you (item price/shipping/handling) and to PayPal (their fees).

 

what my role/obligations for that tax amount? Do I need to pay this tax again to the US or to India?”
If you did not receive the paid sales tax amounts because the marketplace platform deducted it to remit to the respective governments, it is unlikely you don’t need to pay it again. For what India tax implications that might have on you, please consult an India tax professional.


Kudos & Solved are greatly appreciated. 🙂
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elysia_bliss
Contributor
Contributor

thanks so much for your quick reply. 

I saw the Fee schedule, its all Greek to me.. could you pls explain with an example?

Say, I sell a product, my contribution is my only my creative designs, the physical product is from US, and is going to either US itself or anywhere in the world.

 

Say the product was for $100 dollars, I see that the end customer has paid $130 dollars, $30 dollars shows up on PayPal statement as Sales Tax. The remaining amount is being transferred to my India bank account. I have GST number in India. 

What are the charges levied by PayPal on this? 

Also, I am not able to add my GST number to PayPal. How do I do that?

regards

 

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