I think part of the problem is the way the listing has been set up as it shows it as offering free post in the general search. This is what the buyer would have seen and most likely expected.

It has always been a bit confusing on how to list an item showing local pick up only and a lot of sellers get caught out by listing the option incorrectly.

If the buyer wants the item posted and that is not possible you need to contact Paypal and ask them to release the money back to the buyer.

Well then I have had plenty money go through and I haven't been asked to give any extra info so you might be 99% correct then

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@collective05 wrote:

Well then I have had plenty money go through and I haven't been asked to give any extra info so you might be 99% correct then

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What do you mean by plenty of money?

If your ebay transactions are all you have going through your paypal account you have probably not yet reached the limit.

I had my paypal account long before it was acquired by ebay.  I now use it on ebay.   I have probably put in excess of $100,000 through the account in sending and receiving funds from the USA and Canada as well as my ebay usage.  I had to provide extra proof of ID after about $10,000 had gone through it but that was many years ago.

Hi, Paypal have refused to release the money back to the buyer until I provide my taxation returns and social security details ( I dont have Social Security details ). This is insanity.

There has been no more than $1100AUD go through the account in total and $999.00AUD was one transaction

Ebay would not remove that off the listing and it was updated in the item description before the buyer purchased.

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@hmmar-spier wrote:

Hi, Paypal have refused to release the money back to the buyer until I provide my taxation returns and social security details ( I dont have Social Security details ). This is insanity.

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NOBODY has the right to demand your Tax Return.  Forget trying to deal with paypal any longer......go to the Financial Services Ombudsman immediately.

I am surprised that the buyer has not opened an INR case through Paypal - if someone was holding that amount of money of mine and I hadn't received what I had paid for I would be doing just that.

If the buyer opens an INR dispute then Paypal will have no choice other than to refund the buyer by either releasing the funds they are holding from your or from their own pocket....which I am sure Paypal will be reluctant use their funds to reimburse the buyer.

I agree with Lyndal - the ombudsman may be the way to go.

As a last resort I would ring Paypal tomorrow and tell them they have 24 hours to release the money back to the buyer or you will be lodging a formal complaint with the ombudsman.