I would imagine there`s enough sellers that have realized the Paypal fees on tax payments can accumulate very quickly if your doing large numbers on a seller site such as Reverb. If Reverb is already separating the tax and payouts if your using their Reverb Preferred payout, how hard would it be to do the same for Paypal payouts. This practice needs to be resolved and ended. It`s already time for a class action suit. This practice is costing small business owners millions of dollars, and am sure Paypal is not complaining about applying fees on tax.
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