@gotclubs wrote:
I just received an email from paypal that says,
"For transactions that require eBay to collect tax from buyers, the tax amount will be included in the gross purchase amount to be processed. Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority."
Does this mean paypal will now hit us with the 2.9% fee on the tax as well as the purchase plus shipping price?
Yes. eBay sellers got lucky for a while with this.
There are no exemptions for credit card processing for taxes of any kind. When you purchase things from the store, or from a website, or from a restaurant, all of those business pay their credit card processing rate on any taxes. Think Airlines and Car Rentals and Hotels, they ALL pay processing fees on all the tourism and sales taxes they must charge.
Sellers on eBay that have been manually collecting sales tax for the past decade have been paying processing fees on them as well. Many eBay sellers saved a lot of money that other sellers did not with this policy. This now brings the policy consistent with industry standards.
