| Discussion Forum: Thread 337386 |
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| | | Author: | gylman  | | Posted: | Apr 1, 2023 05:37 | | Subject: | Paypal collects tax on shipping to? | | Viewed: | 170 times | | Topic: | Payment Methods | |
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| As I saw Bricklink process my invoice for a customer, I saw that Paypal's
tax collection system collects tax on the shipping cost. Is that correct? is
that how it should be? It seems to me that shipping cost should not be taxable.
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| | | | | Author: | Dino | | Posted: | Apr 1, 2023 06:36 | | Subject: | Re: Paypal collects tax on shipping to? | | Viewed: | 46 times | | Topic: | Payment Methods | |
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| In Payment Methods, gylman writes:
| | As I saw Bricklink process my invoice for a customer, I saw that Paypal's
tax collection system collects tax on the shipping cost. Is that correct? is
that how it should be? It seems to me that shipping cost should not be taxable.
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It's not Paypal, it's Bricklink.
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| | | | | Author: | TallyToyBricks | | Posted: | Apr 1, 2023 06:41 | | Subject: | Re: Paypal collects tax on shipping to? | | Viewed: | 52 times | | Topic: | Payment Methods | |
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| If your customer is in the USA - some states do charge taxes on the shipping
charge.
Joe
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| | | | | Author: | manganschlamm | | Posted: | Apr 1, 2023 07:41 | | Subject: | Re: Paypal collects tax on shipping to? | | Viewed: | 45 times | | Topic: | Payment Methods | |
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| In Payment Methods, gylman writes:
| | As I saw Bricklink process my invoice for a customer, I saw that Paypal's
tax collection system collects tax on the shipping cost. Is that correct? is
that how it should be? It seems to me that shipping cost should not be taxable.
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But the shipping costs should already have been taxed. The costs we are charged
by the post office or some private shipment company does already contain any
taxes like value added tax. If Paypal or Bricklink takes taxes on top, it means
double taxation. This is illegal.
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| | | | | | | Author: | hpoort | | Posted: | Apr 1, 2023 08:02 | | Subject: | Re: Paypal collects tax on shipping to? | | Viewed: | 48 times | | Topic: | Payment Methods | |
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| In Payment Methods, manganschlamm writes:
| | In Payment Methods, gylman writes:
| | As I saw Bricklink process my invoice for a customer, I saw that Paypal's
tax collection system collects tax on the shipping cost. Is that correct? is
that how it should be? It seems to me that shipping cost should not be taxable.
|
But the shipping costs should already have been taxed. The costs we are charged
by the post office or some private shipment company does already contain any
taxes like value added tax. If Paypal or Bricklink takes taxes on top, it means
double taxation. This is illegal.
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Your claim is not true. If the postal charges are taxed (and often postal services
are exempt!), those are the taxes you deduct and thus there is no double taxation.
Even if you decide not to deduct the taxes you already paid, that's totally
up to you and not illegal.
On the contrary, Bricklink as a marketplace is obliged to calculate and take
the tax.
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| | | | | Author: | peregrinator | | Posted: | Apr 1, 2023 10:12 | | Subject: | Re: Paypal collects tax on shipping to? | | Viewed: | 42 times | | Topic: | Payment Methods | |
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| In Payment Methods, gylman writes:
| | As I saw Bricklink process my invoice for a customer, I saw that Paypal's
tax collection system collects tax on the shipping cost. Is that correct? is
that how it should be? It seems to me that shipping cost should not be taxable.
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Depends on the state (as far as the USA is concerned). And in Canada HST is collected
(not by BrickLink at the moment, but other marketplaces) on shipping charges.
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| | | | | | | Author: | peregrinator | | Posted: | Apr 1, 2023 10:48 | | Subject: | Re: Paypal collects tax on shipping to? | | Viewed: | 31 times | | Topic: | Payment Methods | |
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| In Payment Methods, peregrinator writes:
| | In Payment Methods, gylman writes:
| | As I saw Bricklink process my invoice for a customer, I saw that Paypal's
tax collection system collects tax on the shipping cost. Is that correct? is
that how it should be? It seems to me that shipping cost should not be taxable.
|
Depends on the state (as far as the USA is concerned). And in Canada HST is collected
(not by BrickLink at the moment, but other marketplaces) on shipping charges.
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Imagine if no sales tax were charged on shipping, people would price their parts
at $0.01 each and charge ridiculous fees for shipping and handling (just as some
do now in order to avoid BL fees).
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| | | | | Author: | popsicle | | Posted: | Apr 1, 2023 11:08 | | Subject: | (Cancelled) | | Viewed: | 83 times | | Topic: | Payment Methods | |
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| | (Cancelled) |
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| | | | | | | Author: | MScherrer | | Posted: | Jun 5, 2023 14:48 | | Subject: | Re: Paypal collects tax on shipping to? | | Viewed: | 41 times | | Topic: | Payment Methods | |
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| Thank you so much for explaining this! I was seriously confused, but now it makes
a lot more sense.
-Meredith
In Payment Methods, popsicle writes:
| | In Payment Methods, gylman writes:
| | As I saw Bricklink process my invoice for a customer, I saw that Paypal's
tax collection system collects tax on the shipping cost. Is that correct? is
that how it should be? It seems to me that shipping cost should not be taxable.
|
Currently, several states (not all) mandate the entirety of "shipping and
handling" charges of an online transaction, be taxed. Some others, a percentage
of the shipping/handling charges collected, and others that consider only the
handling charges so far.
Add to that mess, within each state are varying sales/use tax rates, depending
on any additional charges via percentage added by individual city and county
governments to a given state's legislated state tax. This additional percentage
is only gonna become more widespread, as it's increasingly being viewed as
a convenient source of revenue for many mismanaged local governments
Therefore, BrickLink or contracted third-party, use zip code data to calculate
the unique sales tax obligation of each individual transaction, wherein many
(not all) factor all the charges within a transaction as taxable.
-popsicle
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| | | | | Author: | wildchicken13 | | Posted: | Apr 2, 2023 10:20 | | Subject: | Re: Paypal collects tax on shipping to? | | Viewed: | 33 times | | Topic: | Payment Methods | |
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| PayPal does not collect sales tax. BrickLink does.
Some states assess tax on shipping and handling charges, while others do not.
PayPal assesses fees on the grand total including tax, shipping, etc.
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Canada, Ontario
Luxembourg
USA, Florida
Germany, Nordrhein-Westfalen
Netherlands, Groningen
