Sales tax

crisagafi
Contributor
Contributor

Hello,

 

I have read the other answers on sales tax the community offered but I'm still unclear; perhaps because of the way transaction will take place on my site.

 

On my website, I will not, personally, sell something. Instead, I act more like a store where a user will upload and electronic file, set the sale price and sell the file (in their own name) to other users. My understanding is that sales tax will apply if both the seller and the buyer are from the same state.

 

Since buyers and sellers are from all over the country, each state having a sales tax, sales tax differing also by zip, how can I setup the tax table for all these variables? Is there an automatic option? Do I even have any responsability in regards to sales tax since the sale takes place between two users on my site - the funds will come from the buyer's account, enter my account, then when $10, for ex, is reached the money is transferd into the seller's account, minus our fee?

 

Any help will be much appreciated!

Thank you!

 

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2 REPLIES 2

surplusdealdude
Advisor
Advisor

According to this, it's supposed to be automatic;

 

https://merchant.paypal.com/cgi-bin/marketingweb?cmd=_render-content&content_ID=merchant/wp_standard

 

Exactly HOW you set it up is beyond me, though - perhaps you should phone Paypal and ask for their technical help perople.

 

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crisagafi
Contributor
Contributor

Thank you for your answer!

 

It does seem to be automatic, meaning each user has an option in their profile to set a sales tax so tax will be applied automatically to the sale. This clearly puts the sales tax responsabilty on the seller.

 

However, if the sale takes place between the seller and buyer but the funds pass through the website's paypal account first in order to retain the service fee, does this change anything regarding sales tax responsibilty? Is it still entirely seller's responsability?

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