Paypal Fees on Tax

olisuds · Mar 14, 2020

Just looked at an eBay paypal transaction and not sure whats going on with tax (VAT) and fees.

Never noticed the buyer (in the US) paying tax. The email said it was VAT.

Also how much are the paypal fees? £6.65 is 5.4% of £123 !! That doesn't sound right!

Amount £111.00
Postage £12.00
Tax£6.66
Purchase total £129.66
Fee -£6.65
Tax collected by eBay -£6.66
Total£116.35

Interested to know how this is worked out!

lejackal · Mar 14, 2020

Some states (California for one iirc) pay tax on top of the price I think

olisuds · Mar 14, 2020

Ah ok. It was confusing because it said VAT. US doesn't pay VAT. So its a US tax!?

I gather paypal fees for US to UK have now risen to 4.9% plus 30p. Wow when did that happen?

On top of that it appears Paypal charge the fee on the item, postage and also the tax the buyer pays!

So I pay fees on the buyers tax now?? How is that right?

olisuds · Mar 14, 2020

Putting aside the fact that Paypal fees have gone up...

Paypal fees are not just a charge on the item and postage costs anymore.

They are also now charging a fee for the sales tax collected by EBAY !!!

They are charging a fee on a sales tax that the seller has nothing to do with and the seller doesn't have any visibility of it until the transaction is completed.

How is that legal!

lejackal · Mar 14, 2020

Here's the eBay US State sales tax page;

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section3

Quite how PayPal can charge you a fee a tax charged by the sellers State that is collected by eBay and that you don't receive is beyond me.

olisuds · Mar 14, 2020

Yep exactly, how can the buyer pay fees on the sales tax that the buyer pays.

That doesn't sound legal.

I've googled this and it appears to be a very recent thing and causing a big stir.

theforceuk · Mar 19, 2020

Thats ebay for you, just creaming it!

Paypal Fees on Tax

olisuds

Sith Lord

lejackal

Grand Master

olisuds

Sith Lord

olisuds

Sith Lord

lejackal

Grand Master

olisuds

Sith Lord

theforceuk

Grand Master

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