Seller paying PayPal fees on sales tax

[properlypicked]

Seller paying PayPal fees on sales tax... is this for real? Once a seller moves over to ebay managed payments, will this also be the case? 

Thank you for your help explaining this!

[coffeebean832 · Accepted solution]

Yes it's for real. No- MP sellers are not currently charged fees on sales tax for states where eBay is the one collecting.

[style2034]

I just figured this out that paypal is including in their fees the sales tax that buyers have to pay.  I can not find an ebay/paypal calculator that figures out your profit correctly.  When did this start and what does MP stand for?

[dentalsales4u]

MP is for eBay's Managed Payments.
I always had to pay the fee when there was tax charged on sales in Texas.
Now it will include any state that has a tax charge if it's via PayPal.
I need to go back and look at my MP transactions to see what the fees are for states that charge tax to know for sure if we are being charged for the tax, but I would think we would be.

[dentalsales4u]

I just went back and found a sale in Texas and the processing fee did not include the tax amount in MP.

[parksfamilythings]

So, are you saying if we switch to managed payments, we won't be charged the extra fee from PayPal on tax? Can we still accept PayPal? Do managed payments cost more to sellers? I personally hate buying stuff now and having to take the extra step for PayPal instead of charging my credit card. Thanks, I'd like to use my PayPal balance, that's what it's for! I'm really ticked that I am basically paying a portion of the customer's tax for them. It's starting to add up, they had to change it right before my big sales months!

[creeg1]

I've read about delays and many glitches with managed payments. The trade-off is paying fees of 3% or more on taxes paid to us by buyers, but we (sellers) never receive a dime of it.