Setting Up Sales Tax Collection

Broadpath
Contributor
Contributor

Greetings All - I'm having difficulty finding a clear answer to this question as well as current documentation on the topic.

 

Does PayPal automatically collect sales tax from a customer in an applicable area or does that need to be set up through the seller account, or applied on the invoice? If I sell through eBay, for example, the tax is already assessed and collected by eBay with no administrative actions required of me. But, I'm unclear how PayPal operates if selling direct through the system. Does the seller collect and then is responsible for remitting? There's no obvious information on that.

 

I've seen documentation that points to a 'tax table' in the profile that needs to be set up by the seller but no such item shows up in my profile. I am not a Business account, but I was once a Premier account that was merged with personal whenever that occurred. I do have a Merchant ID but have rarely invoiced through the system directly.

 

Thanks in advance for your assistance.

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2 REPLIES 2

PayPal_Michael
Moderator
Moderator

Hello, @Broadpath. Thanks for taking the time to add your questions here on the PayPal Community Forum.

 

PayPal does not collect taxes in the way eBay or other ecommerce platforms do since were just a payments processor. You may add tax to an invoice or you may advise a buyer to send a payment that includes the cost of the item and any tax that you believe you will need to report on your taxes.

 

To take advantage of automatic tax settings, you will need to upgrade to a Business account. Please check out https://www.paypal.com/smarthelp/article/faq3452 for more information on how to incorporate taxes into the settings in a Business account.

 

I hope this is helpful. Thanks for your patience during this time. Thanks for being a part of the PayPal Community!

Sincerely,

Michael
PayPal_Michael

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Numzaanstef
Contributor
Contributor

I am registered as a business. I have added the Tax on payment level. I pick it and as soon as I leave the page it does not save the setting.  Would you be able to help please?

 

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