- Nov 2, 2011
- Reaction score
If you look closely at any of your recent paypal transactions which included state sales tax, you will see that the full amount including sales tax is deposited into your account. Paypal then applies their 2.9% fee to the entire amount (including sales tax) and ebay withdraws the sales tax and remits on your behalf before you ever see it. You are left with the remainder.Interesting, I appreciate your response. I've seen that message from eBay, maybe the answer is right in front of my face, but are they somehow taking that extra 6/7% straight from my PayPal after the sale is made? Or is that just money that I get to keep? Every sale I've made lately has that extra percentage tacked on, I feel like I should understand this better than I do but it's just going right over my head. Unless what I'm missing is the fact that we'll just get taxed based on a slightly bigger revenue number at the end of the year since the sales tax is added on to every sale.
It's kinda crappy for paypal to take a fee on the tax portion, but the fractional increase in fees is definitely worth not having to deal with hundreds of tax rates across the country. For example $100K sales a year at an estimated 8% sales tax average, would result in about $230 in extra paypal fees. $20 a month to not have to deal with it....Yes please!