XF 2.1 PayPal charging sales tax for account upgrades?

[cdub]

I've noticed recently that PayPal has been adding sales tax to some of the account upgrades that I've been getting. That can't be right.

I'm using the paid registrations addon as well but I don't think that is adding it.

 

[Patrity]

Are you sure it's not paypal's fees that you're seeing removed from the transactions? Do you have something itemized that shows taxes being removed?

 

[cdub]

Are you sure it's not paypal's fees that you're seeing removed from the transactions? Do you have something itemized that shows taxes being removed?

Yes. Well taxes added actually. Not removed. I'm getting more money.

 

[DarkGizmo]

If you're making more money, why are you complaining about it?

 

[cdub]

If you're making more money, why are you complaining about it?

Because I don't want to have to file state sales tax for 50 states if I don't need to?

Sales tax collected isn't for me. I need to somehow get it to the state tax boards.

 

[Pierce]

In Europe it's worse. It's all EU member states. As I don't have a company in Germany how am I supposed to get the vat to them? Or France etc

 

[bzcomputers]

Because I don't want to have to file state sales tax for 50 states if I don't need to?

Sales tax collected isn't for me. I need to somehow get it to the state tax boards.

You pay sales tax only in the state in which you or your business resides. It doesn't matter where the purchaser is, the tax rate is based off where the individual or business files taxes. If you have businesses at locations in multiple states this can get a little more complicated, but I don't think this is relevant to you from what it sounds like.

 

[cdub]

You pay sales tax only in the state in which you or your business resides. It doesn't matter where the purchaser is, the tax rate is based off where the individual or business files taxes. If you have businesses at locations in multiple states this can get a little more complicated, but I don't think this is relevant to you from what it sounds like.

The amount added by PayPal is different each time. It's very strange. Is an account upgrade a sales taxable transaction?

 

[bzcomputers]

The amount added by PayPal is different each time. It's very strange. Is an account upgrade a sales taxable transaction?

It is unlikely your state would require you to charge sales tax for an online account upgrade. That being said state tax laws change all the time.

If you find out your state does require you to charge taxes, then you should only be charging it to individuals you are upgrading within the state. Al others should be set to a 0% tax rate, this needs to be done within PayPal.

Here is some pretty recent info: https://www.thebalancesmb.com/internet-sales-tax-what-is-the-law-4164865

 

[cdub]

I deleted the CA sales tax in PayPals setting as digital goods are not taxable in CA. Hopefully that fixes it.