I want to block payments by state. Since the United States Supreme Court decision South Dakota v. Wayfair, Inc. states like California are forcing online merchants that have no nexus in their state to collect sales tax. The cost is prohibitive for me to collect California Sales Tax with all their different district tax rates.
Sure there is Safe Harbor limits for California $100,000 or less than 200 separate transactions but I just don't want to deal with CDTFA nor count last year’s transactions and sales.
You can read more about California requirements at https://www.cdtfa.ca.gov/news/18-59.htm
I want to refuse any order from California, Idaho and Oklahoma since I do not want to collect their sales tax.
Paypal has the functionality to block international payments - Selling Tools Section > Getting Paid and Managing Risk> Block Payments
I don't see anything to block by state.
I hope Paypal merchants will sound off for Paypal to add the ability to block payment by state. If Paypal really appreciates their merchant clients they could add functionality that counts the transactions by states and total transaction amounts and when getting near the safe harbor limit for each of the 45 different states with sale tax by sending the merchant a warning that next sale could place your business in a situation now forcing you to collect sales tax. That warning would ask do you still want to collect orders from that particular state. Sure I know I am probably asking too much here but if Paypal really cares about the small businesses they could shine by adding this functionality.
Why would Paypal want buyers and sellers to have a rotten experience using Paypal? What I have to do now is if I receive an order from California is cancel the order.
If someone has a fix for blocking by state I will be thrilled but if there is not an answer please call Paypal demanding this functionality.
When South Dakota sets their Safe Harbor limits at $100K/200 transactions and California GDP is how many times larger than SD one would think CA would just maybe set their limits at $500K/1000 transactions.
