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Paypal charging sales tax without me knowing?

Customers are calling me to ask why the tax.

         

palain

1:01 pm on Jul 28, 2009 (gmt 0)

10+ Year Member



I am in Canada and have a Canadian Paypal account as well as a Canadian GST/HST tax number.

I do not charge sales tax in US bound orders.

Some customers have told me that sales tax has been charged but on the receipt that I get I do not charge tax and it would be illegal for me to charge tax but not give it back - a misrepresentation or even fraud.

I asked one of my clients to send me their statement showing the tax because I did not charge for it.

I have not yet seen the statement but I have a feeling it is true because some of my clients have made reference to that previously.

Is Paypal charging sales tax for some states without my knowledge?

If so, when refunding the customer would that tax which I did not collect be refunded?

bwnbwn

1:31 pm on Jul 28, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Just 1 more reason I don't use paypal.

When you log into your paypal account do you see a different deposit amount than what the order was for.

If it isn't on your statement and you refund the tax your gonna be out the money.

palain

1:49 pm on Jul 28, 2009 (gmt 0)

10+ Year Member



After trying out my cart, it appears that the Paypal shopping cart is charging everyone 5% GST but only giving me the money when a Canadian client purchases. I removed the tax calculation and will include it in the price for my canadian customers via GEO targetting.

That seems like a bug where Paypal stands to make a substantial amount of money.

palain

1:57 pm on Jul 28, 2009 (gmt 0)

10+ Year Member



It could be that the tax was not actually charged or calculated until the address has been concluded as part of the payment process.

Since I did not see the statement, I can only speculate if the tax had been charged or not.

Just that I did not get the money or charged for it.

palain

4:50 pm on Jul 29, 2009 (gmt 0)

10+ Year Member



My client just got back to me and says that the statement did not contain additional tax.

what a relief!

Here's what happened:

For some reason, the shopping cart states that there is tax but once the checkout has the address, the tax is removed. This can and has led to confusion.

engine

5:42 pm on Jul 29, 2009 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Thanks for updating us on this.