What PayPal setup should I use for a personal website selling digital art internationally?

[pmohan]

Hi PayPal community,

Good Morning/Evening! This is my first post here 😊.

Context: I have 2 questions on setting up my Paypal account for my business. Currently, I have a personal account, and I am aware that I should be switching to a business account for the same (will be individual or sole for sure), which I eventually will. I would be selling original digital art that I create and post on my website to sell internationally, both as physical and digital copies. I would like to integrate two features of PayPal for this on my website: the buy button and email invoices.

My 2 questions are:

1. I do not have a GST yet (I am Indian), and I know that for physical goods I need one, but for digital print sales, do I need a GST?

The reason for this query is since my digital service is a non-OIDAR service provided to a non-business entity (to individuals), as per Indian government norms, wherein the supplier is providing non-OIDAR services to a non-business entity anywhere, no GST would be levied in this case. Check the table mentioned in this government website about commissions being non-OIDAR. Look for the table in page 2 - "Individually commissioned content sent in digital form e.g., photographs, reports, medical results".

The confirmation of Non-OIDAR services being GST free can be found anywhere, for example in this link. Look for - "In such cases wherein the supplier is providing Non-OIDAR Services to a Non-Business entity, No GST would be levied in this case." Through this, I know I can only sell to individuals and not to business entities or companies.

So can I just setup a Business Category: Individual type, select the appropriate product code in PayPal, and run my digital print selling work (only) on my website without GST? I am checking on this because I want to ensure I follow the correct rules and do not get blocked by PayPal over anything once setup like requesting a GST etc.

2. I have read most of your user documentation, and I see there is an option for upgrading to the Micropayments application (link). Do you have more information on this? What are the eligibility requirements? If I am selling my digital arts for $10 or less on my website (digital goods only), will I be eligible? Is GST needed for upgradation in this case? Will it work on my business or individual account?

I could gather bits and pieces of information from other questions, social media, and videos, but I am posting this question so that in the future I do not have any issue with PayPal transactions. I have seen a lot of negativity from artists selling digital and physical goods through PayPal online, but I truly believe it might be because they failed to understand your rules correctly.

Just a note that I will be operating this legally and using my own identity, so there won't be any scams on my part.

I would be grateful for any guidance or assistance!

[PayPal_Olivia]

Hi @pmohan,

Thank you for your post and welcome to the Community Forum! I applaud your proactiveness in wanting the answers to these questions before creating your account. This subject is a little outside my area of expertise, but I was able to research a bit and find information for you.

From what I understand, GST is levied as a percentage of the fees on all transactions, whether physical or digital and whether goods or services. A consolidated invoice will be shared with you every month. If I understand this correctly, it would not be necessary to provide us with your GST registration information unless you believe that you are subject to a credit. PayPal is required to charge the GST up front, but some merchants/freelancers may be eligible for refunds - please consult your GST advisor for details. 

All information regarding Micropayments is available at this link. Micropayments is only available on a Business account. To apply for the option, you can contact Customer Service by clicking Contact at the bottom of the PayPal website and following one of the listed options. One thing to note - if the prices for your art fluctuate and you have transactions that are greater than the threshold, those transactions would also be subject to the Micropayments rate. It's only advantageous for you if all or the vast majority of your transactions are expected to be small.

I hope this information answered the majority of questions you have!

Olivia