topic Paypal Fees in Selling

Paypal Fees

jjba6541 — Sun, 05 Jan 2020 22:56:25 GMT

Cant understand Paypal fees .I have tried to get through to them but cant get any answers.

I have been charged a Tax and Partner fee as well as the paypal fee.all comming to over $10.

What is a partner fee and and a tax.

Never had this before.

With Ebay fee deductions I have paid nearly $20 0n an $84 sale.

Re: Paypal Fees

twyngwyn — Sun, 05 Jan 2020 23:03:12 GMT

https://www.paypal-community.com/t5/PayPal-Basics/Partner-fee/td-p/1590541#

Re: Paypal Fees

k1ooo-slr-sales — Mon, 06 Jan 2020 03:07:41 GMT

@jjba6541 wrote:
Cant understand Paypal fees .I have tried to get through to them but cant get any answers.
I have been charged a Tax and Partner fee as well as the paypal fee.all comming to over $10.
What is a partner fee and and a tax.
Never had this before.
With Ebay fee deductions I have paid nearly $20 0n an $84 sale.

I clicked the link provided by twyngwyn and read the PayPal community thread.

I have a few questions focussing on the $ amounts in your PayPal history:

- what was the total amount you were expecting to be deposited into your PayPal account for the sale? i.e. item + shipping

- how much was deposited into your PayPal account for the transaction?

- where is the buyer located?

- what are the exact amounts itemised in your PayPal transaction history? (this will enable % calculations)

The reason I am asking these questions is that I recall reading recently that eBay are now adding state sales tax for USA buyers based on the state they live in. Also, I recall that when a buyer is charged these taxes the taxes are paid into the seller’s account and then withdrawn to be forwarded to those states tax authorities.

Re: Paypal Fees

bjlcr — Mon, 06 Jan 2020 04:48:33 GMT

That is interesting
The buyer does come from the states.
I was expecting $84.44 but ended up with $74.66
Fee was 3.44 .Tax was 6.50.
There was a partener fee added on earlier but they have removed that now...Dont know what that was.
Ebay fee was 3.60 for shipping and 4.90 for item
I was expecting the Ebay fee but not the paypal.
So we get taxed now if buyer is from USA.
guees sellers cant win

Re: Paypal Fees

k1ooo-slr-sales — Mon, 06 Jan 2020 05:18:35 GMT

@bjlcr wrote:
That is interesting
The buyer does come from the states.
I was expecting $84.44 but ended up with $74.66
Fee was 3.44 .Tax was 6.50.
There was a partener fee added on earlier but they have removed that now...Dont know what that was.
Ebay fee was 3.60 for shipping and 4.90 for item
I was expecting the Ebay fee but not the paypal.
So we get taxed now if buyer is from USA.
guees sellers cant win

my understanding, which may be incorrect, is that the buyer pays the tax . . . but it is forwarded to the seller before then being taken from the seller.

It might be that the seller, having been credited with the USA state sales tax, pays PayPal fees on the collection of the sales tax as it is a payment credited to their PayPal account as part of the transaction despite the fact that it is immediately taken from the seller’s PayPal account. A bit sly (if it works this way).

This is all just supposition on my part as I have not been party to any overseas transaction, just read a few threads here and recall someone posting about the state sales tax.