I have a group of friends and we share the cost of other software platforms and things outside of Paypal. To make things easy I just pay for everything and then I send requests to them here on Paypal for their fair share portion of what we use.
So I am not selling them anything, yet Paypal hits me with sellers tax and has tax document section.... I'm wondering if there is a way I can just be listed as receiving donations, or friends just giving friends money? Or is there is a better platform i should be using for this like venmo or cashapp? Thanks in advance!
Money request allows the sender to choose personal payment or business payment so PayPal not the one determining the payment type. The senders are. Maybe some forgot to select the correct payment type while paying or marked it as goods and services on purpose so that if there is a falling out amongst the group or individual in the future, they can somehow get some of their money back. Not unheard of people weaponizing PayPal.
Even Venmo and Cash app have business and personal modes of sending payments. If you want it to be 100% personal payments, use Zelle.