I don't understand why Paypal is taking a percentage of the sales tax that my customers are paying as required by their state? I agree that pypal is entitled to their fee based on the actual sale cost but not the sales tax too...or even shipping cost as well. I sell, among others, through Reverb.cm(guitars) and their policy is to "add" state sales tax to the cost of my product in which the customer resides. But instead of with holding that tax and remitting it to the state where owed, they include it in my sale total (along with shipping cost I charge which is another issue I have with Paypal)...with out breaking the tax out of my total sale. The problem is that Paypal charges me their fee based on that whole number, which includes the customers sales tax, that ultimatly must be remitted to the state where it's owed. 2 problems here. One, the obvious over charging of fees as there should not be any fees taken from sales tax as that would leave the state owed the tax short. And then what...I have yo make up for it? Then I am being taxed in a way. But the second issue is that then Reverb.com then takes the "tax" money presumably in my paypal account to remit it themselves to the states it's owed to. Is this bizzarrow world? First, Reverb should just with hold the tax portion of the customers payment money so it never hits my paypal account. That would solve the main issue. But since they don't, I think Paypal is doing something wrong by taking a cut of state owed taxes earmarked for remittance to those states. I might even go so far as to call it theft or fraud to take governments tax money leaving the seller to dip into his own pocket to make up for the difference. Seriously, can I then claim all this extra expenses on my tax form at the end of the year? Can I say, well, since paypal took tax money owed to Arizona and now I'm short with the money to remit to them can I claim a loss of profit? Oh wait..in my case Reverb will be short when I don't have all the tax money they will try to bill me for from my paypal account then I will owe them after they have to dip into their pockets to make up the difference paypal took. You see... Reverb.com owes the sales tax that they promised all the states to remit to them as the online sales venue people use. See how crazy wrong all this is? In the meantime do I have to sue Paypal for the percentage of tax money they took from my sales? Can I hold them liable for the state tax that is owed? The states will surely go after Reverb.com if they don't get their sales tax reverb agrees to collect. But Reverb is likely to after me...as if it's my fault Paypal is taking some of the sales tax money and pocketing it. Then ultimately I have to sue Paypal to get them to refund the tax money? Why is all this happening and why can't big business do the right and correct thing?
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