Topics

Paypal collecting state sales taxes?

Brian Eiland
 

I saw a couple of 'private post' suggesting the the 'new paypal' may be collecting state sales taxes??

Could this be true??

George Emmett
 

About a week ago one of my buyers was charged a 1.11 fee to send me money friends and family.

 

George

 

Sent from Mail for Windows 10

 

From: Brian Eiland
Sent: Thursday, December 5, 2019 6:31 PM
To: HOswap@groups.io
Subject: [HOswap on IO] Paypal collecting state sales taxes?

 

I saw a couple of 'private post' suggesting the the 'new paypal' may be collecting state sales taxes??

Could this be true??

 

grassball2003
 

From the Paypal website:

There are no fees within the U.S. to send money to family and friends when you use only your PayPal balance or bank account, or a combination of your PayPal balance and bank account.

There is a fee to send money as a personal payment using a debit or credit card. You can find a list of all fees on our Fee page.

George B

On 12/5/2019 3:37 PM, George Emmett wrote:

About a week ago one of my buyers was charged a 1.11 fee to send me money friends and family.

??

George

??

Sent from Mail for Windows 10

??

From: Brian Eiland
Sent: Thursday, December 5, 2019 6:31 PM
To: HOswap@groups.io
Subject: [HOswap on IO] Paypal collecting state sales taxes?

??

I saw a couple of 'private post' suggesting the the 'new paypal' may be collecting state sales taxes??

Could this be true??

??


Lee
 


PayPal shouldn’t be collecting sales tax on top of eBay already doing it. That was a federal law that went in effect back over the summer. eBay collects and remits on your behalf based on state of sale. That’s how I am understanding it. 

Lee

On Thursday, December 5, 2019, 18:37, George Emmett <gwe5481@...> wrote:

About a week ago one of my buyers was charged a 1.11 fee to send me money friends and family.

 

George

 

Sent from Mail for Windows 10

 

From: Brian Eiland
Sent: Thursday, December 5, 2019 6:31 PM
To: HOswap@groups.io
Subject: [HOswap on IO] Paypal collecting state sales taxes?

 

I saw a couple of 'private post' suggesting the the 'new paypal' may be collecting state sales taxes??

Could this be true??

 

Scott Eric Catalano
 

PayPal hasn't been collecting sales tax but eBay has been

On Dec 5, 2019 7:00 PM, "Lee via Groups.Io" <leetrains@...> wrote:

PayPal shouldn’t be collecting sales tax on top of eBay already doing it. That was a federal law that went in effect back over the summer. eBay collects and remits on your behalf based on state of sale. That’s how I am understanding it. 

Lee

On Thursday, December 5, 2019, 18:37, George Emmett <gwe5481@...> wrote:

About a week ago one of my buyers was charged a 1.11 fee to send me money friends and family.

 

George

 

Sent from Mail for Windows 10

 

From: Brian Eiland
Sent: Thursday, December 5, 2019 6:31 PM
To: HOswap@groups.io
Subject: [HOswap on IO] Paypal collecting state sales taxes?

 

I saw a couple of 'private post' suggesting the the 'new paypal' may be collecting state sales taxes??

Could this be true??

 


Dan
 

 Maybe we should start using Venmo?

Dan R.

rseiler308
 

Yes, Paypal is now collecting sales tax due to a government order. 
It started in May in Ohio.  


Scott Eric Catalano
 

So...one should cancel the other out then correct? I buy using eBay and I pay using PayPal....so far eBay has been the one collecting the sales tax

On Dec 5, 2019 7:57 PM, "rseiler308 via Groups.Io" <RSeiler308@...> wrote:
Yes, Paypal is now collecting sales tax due to a government order. 
It started in May in Ohio.  



Brian Eiland
 

So maybe we all need to start using F&F payments are are strictly a cash transfer between friends RATHER than the sale of an item??

Al Zangenberg
 

Ebay announced in January 04, 2019 they would start collecting Sales Tax - where applicable.
The following is a list of the states that are affected:
Minnesota – effective January 1, 2019 (However, Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.)
Washington – effective January 1, 2019
Iowa – effective February 1, 2019
Connecticut – effective April 1, 2019
District of Columbia – effective May 1, 2019
New Jersey – effective May 1, 2019
Nebraska – effective May 1, 2019
Idaho – effective June 1, 2019
New York – effective June 1, 2019
Alabama – effective July 1, 2019
Arkansas – effective July 1, 2019
Indiana – effective July 1, 2019
Kentucky – effective July 1, 2019
New Mexico – effective July 1, 2019
Oklahoma – effective July 1, 2019
Pennsylvania – effective July 1, 2019
Rhode Island – effective July 1, 2019
South Dakota – effective July 1, 2019
Virginia – effective July 1, 2019
West Virginia – effective July 1, 2019
Wyoming – effective July 1, 2019
Vermont – effective July 1, 2019
California – effective October 1, 2019
North Dakota – effective October 1, 2019
South Carolina – effective October 1, 2019
Texas – effective October 1, 2019
Utah – effective October 1, 2019
...and growing!
CHEERS!
AL Z.



“Remember yesterday...dream about tomorrow...but live for today!�

On December 5, 2019 at 9:25 PM Brian Eiland <railandsail@...> wrote:


So maybe we all need to start using F&F payments are are strictly a cash
transfer between friends RATHER than the sale of an item??


Brian Eiland
 

So who is being charged the sales tax....the seller, who acting like a retail store is required to collect a sales tax, or the buyer who normally does pay a sales tax on items him/her is buying??

And what is the sales tax rate?...that of the owners state, or buyers state??


On Thu, Dec 5, 2019 at 9:38 PM ALBERT ZANGENBERG <alzcmf@...> wrote:
Ebay announced in January 04, 2019 they would start collecting Sales Tax - where applicable.
The following is a list of the states that are affected:
Minnesota – effective January 1, 2019 (However, Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.)
    Washington – effective January 1, 2019
    Iowa – effective February 1, 2019
    Connecticut – effective April 1, 2019
    District of Columbia – effective May 1, 2019
    New Jersey – effective May 1, 2019
    Nebraska – effective May 1, 2019
    Idaho – effective June 1, 2019
    New York – effective June 1, 2019
    Alabama – effective July 1, 2019
    Arkansas – effective July 1, 2019
    Indiana – effective July 1, 2019
    Kentucky – effective July 1, 2019
    New Mexico – effective July 1, 2019
    Oklahoma – effective July 1, 2019
    Pennsylvania – effective July 1, 2019
    Rhode Island – effective July 1, 2019
    South Dakota – effective July 1, 2019
    Virginia – effective July 1, 2019
    West Virginia – effective July 1, 2019
    Wyoming – effective July 1, 2019
    Vermont – effective July 1, 2019
    California – effective October 1, 2019
    North Dakota – effective October 1, 2019
    South Carolina – effective October 1, 2019
    Texas – effective October 1, 2019
    Utah – effective October 1, 2019
...and growing!
CHEERS!
AL Z.



“Remember yesterday...dream about tomorrow...but live for today!�

> On December 5, 2019 at 9:25 PM Brian Eiland <railandsail@...> wrote:
>
>
>  So maybe we all need to start using F&F payments are are strictly a cash
> transfer between friends RATHER than the sale of an item??
>
>
>

Brian Jennison
 


On December 5, 2019 at 9:46 PM Brian Eiland <railandsail@...> wrote:

So who is being charged the sales tax....the seller, who acting like a retail store is required to collect a sales tax, or the buyer who normally does pay a sales tax on items him/her is buying??

And what is the sales tax rate?...that of the owners state, or buyers state??

So far I've seen one invoice that added the sales tax to what the BUYER is being asked to pay. The amount the BUYER has to pay is whatever his/her state sales tax rate is; this of course varies by state. PayPal is simply the middleman, as before.

Tom OConnell
 

I just went through PayPals fee page. I see nothing about a state tax. But, if they charge the sales tax as per the US Supreme Court decisions a few years ago, that’s fine. Just like Ebay charges state taxes where needed.

Tom


On Dec 5, 2019, at 9:01 PM, Brian Jennison <bljennison@...> wrote:



On December 5, 2019 at 9:46 PM Brian Eiland <railandsail@...> wrote:

So who is being charged the sales tax....the seller, who acting like a retail store is required to collect a sales tax, or the buyer who normally does pay a sales tax on items him/her is buying??

And what is the sales tax rate?...that of the owners state, or buyers state??

So far I've seen one invoice that added the sales tax to what the BUYER is being asked to pay. The amount the BUYER has to pay is whatever his/her state sales tax rate is; this of course varies by state. PayPal is simply the middleman, as before.

Al Zangenberg
 

PayPal is collecting the sales Tax for ebay...
The buyer is charged the sales tax, depending on their state of residence...
The seller collects it, but gets none of the funds through PayPal...
This Sales Tax is known as an:
"INTERNET SALES TAX...NOT A STATE SALES TAX!"
Charging State Sales Tax (FOR), a "Seller" is totally different!
In some cases, at the end of the year, a "1099" FORM will be sent to the seller... :P
I suggest going to the eBay site, and get the info straight from them, not me...
AL :)

On December 5, 2019 at 9:38 PM Al Zangenberg <alzcmf@...> wrote:


Ebay announced in January 04, 2019 they would start collecting Sales Tax - where applicable.
The following is a list of the states that are affected:
Minnesota – effective January 1, 2019 (However, Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.)
Washington – effective January 1, 2019
Iowa – effective February 1, 2019
Connecticut – effective April 1, 2019
District of Columbia – effective May 1, 2019
New Jersey – effective May 1, 2019
Nebraska – effective May 1, 2019
Idaho – effective June 1, 2019
New York – effective June 1, 2019
Alabama – effective July 1, 2019
Arkansas – effective July 1, 2019
Indiana – effective July 1, 2019
Kentucky – effective July 1, 2019
New Mexico – effective July 1, 2019
Oklahoma – effective July 1, 2019
Pennsylvania – effective July 1, 2019
Rhode Island – effective July 1, 2019
South Dakota – effective July 1, 2019
Virginia – effective July 1, 2019
West Virginia – effective July 1, 2019
Wyoming – effective July 1, 2019
Vermont – effective July 1, 2019
California – effective October 1, 2019
North Dakota – effective October 1, 2019
South Carolina – effective October 1, 2019
Texas – effective October 1, 2019
Utah – effective October 1, 2019
...and growing!
CHEERS!
AL Z.



“Remember yesterday...dream about tomorrow...but live for today!�

On December 5, 2019 at 9:25 PM Brian Eiland <railandsail@...> wrote:


So maybe we all need to start using F&F payments are are strictly a cash
transfer between friends RATHER than the sale of an item??



Brian Eiland
 

PayPal is collecting the sales Tax for ebay...
The buyer is charged the sales tax, depending on their state of residence...
The seller collects it, but gets none of the funds through PayPal...
This Sales Tax is known as an:
"INTERNET SALES TAX...NOT A STATE SALES TAX!"
Charging State Sales Tax (FOR), a "Seller" is totally different!
In some cases, at the end of the year, a "1099" FORM will be sent to the seller

So as a seller of an item I am going to receive the price I posted for the item,...and the buyer is going to have to pay more than that price (the added sales tax rate of his state of residence). Then at the end of the year, I as the seller, might receive a 1099 form to fill out for items I sold (and taxes collected in my name, which I never received, and might be liable for??). Do I have some of that correct?
HOW MANY MORE STUPID & COMPILCATED TAX LAWS CAN WE INSTITUTE IN THIS COUNTRY !!!!

Bill Lugg
 

I agree the tax laws are getting foolish in regard to internet sales, but...

In regard to our specific situation - IF we use the Send to a friend option (or whatever they're calling it this week), AND we make no reference to the fact we're buying or selling a product in the notes associated with the transfer, then PayPal won't know they should be charging tax on the transfer, and according to their terms of service there should be no fees charged for the transfer as long as a credit card is not involved.  So, I don't think we need to get too concerned about this, at least not at this point.

Bill Lugg

On 12/5/19 9:23 PM, Brian Eiland wrote:
/PayPal is collecting the sales Tax for ebay...
_The buyer is charged the sales tax, depending on their state of residence...
The seller collects it, but gets none of the funds through PayPal...
_ This Sales Tax is known as an:
"INTERNET SALES TAX...NOT A STATE SALES TAX!"
Charging State Sales Tax (FOR), a "Seller" is totally different!
_In some cases, at the end of the year, a "1099" FORM will be sent to the seller _ /

So as a seller of an item I am going to receive the price I posted for the item,...and the buyer is going to have to pay more than that price (the added sales tax rate of his state of residence). Then at the end of the year, I as the seller, might receive a 1099 form to fill out for items I sold (and taxes collected in my name, which I never received, and might be liable for??). Do I have some of that correct?
HOW MANY MORE STUPID & COMPILCATED TAX LAWS CAN WE INSTITUTE IN THIS COUNTRY !!!!

stevenbechtold@...
 

eBay charges the sales tax.  They charge it over and above the final sales price.  They buyer pays the sales tax.  The seller never sees, nor collects, nor is required to keep track, nor forward the taxes.  It is all done via eBay.  You could be 1099ed by PayPal if your sales exceed $15K.  I have never been 1099ed, but at one point they asked for my SSN because I was getting close.

Steve.


On Thursday, December 5, 2019, 11:23:24 PM EST, Brian Eiland <railandsail@...> wrote:


PayPal is collecting the sales Tax for ebay...
The buyer is charged the sales tax, depending on their state of residence...
The seller collects it, but gets none of the funds through PayPal...
This Sales Tax is known as an:
"INTERNET SALES TAX...NOT A STATE SALES TAX!"
Charging State Sales Tax (FOR), a "Seller" is totally different!
In some cases, at the end of the year, a "1099" FORM will be sent to the seller

So as a seller of an item I am going to receive the price I posted for the item,...and the buyer is going to have to pay more than that price (the added sales tax rate of his state of residence). Then at the end of the year, I as the seller, might receive a 1099 form to fill out for items I sold (and taxes collected in my name, which I never received, and might be liable for??). Do I have some of that correct?
HOW MANY MORE STUPID & COMPILCATED TAX LAWS CAN WE INSTITUTE IN THIS COUNTRY !!!!

Ken Harrison
 

Or, you could actually understand that the sales tax actually provides essential revenue to help provide financial support for the community in which you live.

On 12/5/2019 6:25 PM, Brian Eiland wrote:
So maybe we all need to start using F&F payments are are strictly a cash transfer between friends RATHER than the sale of an item??
--
SCIENCE > OPINION Axial tilt is the reason for the season

stevenbechtold@...
 

Starting to sound a little political...  as with most of the stuff that I sell, taxes have already been fairly paid and collected on these items, none are black market (smuggled) or produced by me. - Sic Semper Tyrannus. - Steve

Meanwhile back to selling trains.



On Friday, December 6, 2019, 01:15:27 AM EST, Ken Harrison <second98@...> wrote:


Or, you could actually understand that the sales tax actually provides essential revenue to help provide financial support for the community in which you live.

On 12/5/2019 6:25 PM, Brian Eiland wrote:
So maybe we all need to start using F&F payments are are strictly a cash transfer between friends RATHER than the sale of an item??
--
SCIENCE > OPINION Axial tilt is the reason for the season