State Tax Collection on eBay Transactions

coloradolabels
New Community Member

Starting to receive PayPal payments which include out of state tax collected by eBay for other states (Texas). This is messing up QB reconciliation process as totals do not match net transaction. Ebay stated these taxes collected would be kept by eBay and paid by eBay to the state in question. Is PayPal charging a % on the tax received and how is it being returned to the state in which it is due?

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3 REPLIES 3

coloradolabels
New Community Member

OK, I Checked the transaction and was charged 3.66% PayPal transaction fee, then they backed out the sales tax to net out the transaction. 

net sale 54.00

Texas tax 3.78 now I have to add this to QB then somewhere back it out to PayPal 

subtotal 57.78 reported to QB

Paypal fee 1.98

eBay tax 3.78

Net paid 52.02

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Error404
Contributor
Contributor

This is fraud they can't do this, you can't account for money you never receive when you file your state sales tax.

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0ldgeezer
Contributor
Contributor

I am having the same problem and I imagine all the Ebay sellers are.

Last night I had a sale on Ebay for:

Item: $9.00

Shipping: @$6.91

Sale Tax (Ebay Collected): $.92

Total: $16.83

Then on Paypal:

 

Payment details

Purchase Total
$9.00 USD
Sales Tax
$0.92 USD
Shipping Amount
$6.91 USD
Handling Amount
$0.00 USD
Insurance Amount
$0.00 USD
 
Gross Amount
$16.83 USD
PayPal Fee
-$0.79 USD
Tax collected by eBay
-$0.92
Net Amount
$15.12
 
Paypal charged me an additional >$.02668 on this transaction due to the California sales tax Ebay charge to my final value fee. It is not my responsibility to pay a fee amount on another fee (CA sales tax). All Paypal needs to do is change the method in their software to remove the sales tax from the gross amount before calculating thier PAYPAL FEE.
 
This could be a much large problem than is visible since I am not the only seller having this problem.
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