Tax on shipping

Does anybody know if the seller is going to be charged a addition PayPal 2.9% + .30 cent fee for sending the taxed amount of a sale to Bonanza?

asked almost 5 years ago

4 Answers

You won’t be charged for the money _Sent to _ bonanza to pay the taxes, but I imagine you will be charged the fee on the total when the sale is made..since PP charges on the total amount of a transaction

If paypal includes the taxes in the fee amount will probably have to answered by paypal

answered almost 5 years ago

CindyBear
Reputation: 3063
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6 Comments

tomwayne1 June 10, 2019

When an eBay sale includes sale tax, the corresponding PP transaction does NOT include that amount and the PP charges are only applied to the item/shipping cost. I would expect Bonanza to work the same way.

MommyOf2QTsLipWorks June 10, 2019

I asked this on the Blog but it was not approved so basically ignored. I figure Paypal will take 2.9% of the total amount the BUYER pays which will include sales tax. At least there won’t be a additional Paypal fee to send the sales tax amount to Bonanza.

tomwayne1 June 12, 2019

I don’t think that PP can take a percentage on the sale tax that the buyer pays since the seller never receives that money. The sales tax is taken out of the transaction before the final amount hits PP accounting. That’s absolutely the way it works on eBay.

tomwayne1 June 12, 2019

… Bonanza is responsible for forwarding that tax money, so Bonanza collects it off the top. Now, in the states that haven’t mandated automatic collection (but a seller sets up their own tax rules), then YES, the total goes to PP and commission is paid on the total. But then, the seller is…

tomwayne1 June 12, 2019

…supposed to forward the sales tax to the appropriate state entity.

MommyOf2QTsScentWork June 12, 2019

I hope you are right tomwayne1. I know it’s only 2.9 cents on the dollar but all those nickles and dimes add up.

When an eBay sale includes sale tax, the corresponding PP transaction does NOT include that sales tax amount and the PP charges are only applied to the item/shipping cost. eBay collects the sales tax from the customer and eBay then forwards to the taxing authority (the State involved). The seller is NEVER responsible to pay that tax except in the State(s) where you set up an individual tax rule and collect the money. When that happens, you are legally obligated to forward to the individual state(s).

Bonanza’s method simply takes away the seller’s responsibility of collecting/forwarding taxes to the State(s) that have already passed laws mandating that internet entities (like eBay, Bonanza, etc.) collect/forward sales taxes to them. Eventually, all states that currently have a sales tax will jump on board and enforce this.

I would expect Bonanza to work the same way.

answered almost 5 years ago

tomwayne1
Reputation: 8637
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I’m thinking as far as the .30 cent fee goes that since this is already charged initially by Paypal, there will be no .30 cent fee for taxes.

answered almost 5 years ago

Unknown how bonanza is doing it. As like most people my question has been ignored about this fee. But most cases you should have to pay paypal the total order 2.9% +.30 Total for item and shipping Now if the order does not show there is sales tax. Then you will also have to pay a extra 2.9% for the tax collected. Guess we will not know until the order goes through. For me i havn’t updated my account yet. But our Bonanza sales are less then 0.5% of our on-line sales.

answered almost 5 years ago

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