Sales Tax and how?
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Hey there. So here is my question, if you need to add sales tax to Paypal for transactions how do you go about adding it? Do you add tax based on where each of our shops are based? For example I am in New York City, so for everyone shopping at my shop do I add the New York City sales tax? Or does it depend on where its being shipped to? And if that is the case, how do i find out what the sales tax is in every state, canada and uk? That's a bit crazy. I have clothing and accessories.
Will paypal recognize if something is being shipped to lets' say North Carolina, will Paypal automatically chose the NC sales tax? I am sure everyone has had to do this, so could anyone help? Because I am totally lost!
Many thanks in advance!!!!
Posted at 4:17 pm Aug 12, 2009 EDT
you do it through paypal.
i'm in kansas and i do a flat rate for kansas, which i figured by looking at all the kansas rates and estimating what the average for my buyer's area would be. if i overcollect, the state gets the extra. if i undercollect, i pay the extra. i pay the state by filing based on the location codes they provide.
each state is different.
most sellers have paypal add the required tax amount.
Posted at 4:20 pm Aug 12, 2009 EDT
You only need to add state sales tax for the state in which you do business.
And yes, you can adjust your PayPal settings to collect only for those buying in your state.
If you have multiple shops in multiple states you need to be registered in each state to collect sales tax.
Posted at 4:22 pm Aug 12, 2009 EDT
Paypal has a section to add sales tax. I'm in CA. I called the Franchise Tax Board and asked them what to charge and to whom. All Ca. residents must pay 8.25% sales tax. Be sure and add that to your policies. Other states do not pat our sales tax. I hope this helps.
Posted at 4:23 pm Aug 12, 2009 EDT
In NY you must charge the tax rate for the buyer's address so you must invoice them manually after the sale--you can't use Paypal to collect it.
We ask in-state buyers to wait for a revised invoice.
More details on NY sales tax here:
New York Sales Tax
New York Sales Tax–part 2
Posted at 4:27 pm Aug 12, 2009 EDT
...i'm in kansas and i do a flat rate for kansas, which i figured by looking at all the kansas rates and estimating what the average for my buyer's area would be. if i overcollect, the state gets the extra. if i undercollect, i pay the extra. i pay the state by filing based on the location codes they provide.
~~~That's illegal in most states...
Posted at 4:31 pm Aug 12, 2009 EDT