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PayPal taxes and Ebay Taxes don't always line up

Contributor

PayPal taxes and Ebay Taxes don't always line up

I don't understand why Ebay taxes and PayPal taxes don't always line up.  For instance: 

Middletown, Ohio 15042 - Ebay 6.5%; PayPal 7.88%

NY, NY 10017 - Ebay 8.88%; PayPal 17.04%

New Kingstown, PA 17072 - Ebay 6%; PayPal 7.46%

Warren, Ohio 44483 - Ebay 6.75%; PayPal 7.35%

 

I Googled tax rates for each, and Ebay is the one that is correct.  

Other transactions from other states all line up, such as: IN, CA, & MD

Anyone have any ideas what is going on?

4 REPLIES 4
Esteemed Advisor

Re: PayPal taxes and Ebay Taxes don't always line up

@123cr 

 

Are you accounting for the PayPal fees that are levied on the gross amount received? Why is PayPal charging you sales tax too? Or is it a thing where ebay charges the tax and the payment is split and divided between you and ebay by PayPal. Then PayPal "puts their 2 cents in" with their PayPal fee and pays the tax to eBay and ebay remits it to the state. 

 

Looks like the discrepancy is occurring for east coast states.


Kudos & Solved are greatly appreciated. 🙂
Contributor

Re: PayPal taxes and Ebay Taxes don't always line up

Hi,

PayPal is not charging me taxes - just my buyer - and the amount is different than what Ebay shows.

Contributor

Re: PayPal taxes and Ebay Taxes don't always line up

eBay and PayPal are commiting fraud and will be sued and will they'll lose, keep records of all these transactions in the end you'll need them when settlement time comes.
Contributor

Re: PayPal taxes and Ebay Taxes don't always line up

I contacted PayPal and they said they’re not collecting taxes, just reporting the taxes that eBay collects. I said that their information is not correct all the time. They said to contact eBay. I contacted eBay and told them that maybe the data set they’re giving to PayPal might be inaccurate. She said she would report the problem. Since my phone call, I’ve seen a marked improvement - only a few discrepancies.