PayPal question for long-time PP users

[muminlaw]

I'm registered on, and do all my selling on the .com site and I'm trying to figure out how to get Canadian sales taxes charged on PayPal invoices.

Right now, I have the 7% GST listed in the Regional Sales Tax section, but how about HST and PST? Is there any way we can let them know about the 3 levels of tax in Canada? That is besides just hoping the buyer will read our additional notes and figure out how to add the extra taxes?

Glenda

[shoplineca]

Glenda
When we had our PP rep frequenting this board last year, he said that PP was working on some new improvements for the Cdn Psers when he was being asked about incorporating sales tax into PP.

He said they (PP reps) couldnt talk about what they were working on until they came out with it.

Well it more than a year later and I think that it is safe to assume that PST/ HST wasnt one of those secret items they were working on, but it did manage to get the majority of us off their back.

I inform my customers that the tax will be reflected in the shipping insurance box and clearly point out that it is due to PayPal not recognizing Cdn taxes. I also tell my customers that the insurance is already included in my shipping price that I quote.

Technically, there is NOTHING difficult for them to do it as they have the sales tax for each state in place.

I wonder however, if there may be some Canadian Provincial laws preventing companies or individuals to collect a commission from charging provincail tax.

Malcolm

[muminlaw]

I never thought of the commission PayPal charges as possibly contravening PST laws, but then again, when has a US company ever given two hoots about Canadian law? I don't think that would stop them ... all I can think is that there are too few of us for it to be much of a priority. You wouldn't think it would be THAT hard for them to add 10 more jurisdictions when they already have 50 states.

Even when they do add the ability to charge PST, it'll prolly be tied to the .ca site and those of us who list on .com will still be SOL ...

Oh well, thanks for bringing me up to speed on the situation Malcolm -- at least now I can stop looking for a non-existant option!

Glenda

[ospreylinks]

Malcolm, I don't think there is any problem with a credit card company charging a commission on the sales tax portion of an invoice. It goes on everytime you use your credit card to buy something....

Example, when you go into a store and buy an item, the clerk rings it up, taxes are added and you give the clerk your credit card. They swipe it through and punch in the value of the sale including taxes and the credit card company charges you the total amount of the sale and transfers the same value to the retailers bank account. Now when the credit card company calculates the discount rate applied, it is on the total value of money transferred, not just the value of the goods less sales taxes.... So Canadian Credit Card operators have been gaining commissions on the value of sales taxes collected on retail and other sales for years.....

Glenda, probably 95% of our sales are settled via Paypal. I always send an electronic invoice and in the freight field, I include the charge for freight, plus GST and applicable Provincial Sales taxes, and then in the note section I give a break down explaining $14.98 as shown as Canada Post is $8.50 Canada Post, 2.98 PST and $3.50 GST as an example.

From time to time I will have someone email back saying freight is extrodinarily high, but this us usually due to them not reading the entire invoice and not the note. When I bring this to their attention they are fully aware and have never had a problem.

Not to say that from time to time I don't have people as we all do who don't think they should be paying taxes on an Ebay purchase, but then I point out that our tax policy is clearing indicated on the listing and they should not bid or buy if they are not willing to pay the applicable taxes.

I wish they would update the tax structure on Ebay invoicing, but think about it, I list on the .com site and if they incorporated the ability to show taxes for Canadian sales, wouldn't they have to do the same for every other country in the world that has vendors listing on the .com site?

They should probably update the .ca site to allow for including Canadian taxes in the invoicing system, but honestly I don't use the .ca site.

Jeff

[shoplineca]

Jeff
I have never done brick and mortar retail in Canada so not accustomed to c/c charges on tax.

I guess in the end, it doesnt matter any more than someone depositing their tax monies into a separate bank account and having to pay bank fees for having the account.

It simply comes out of the vendor's pocket.

Of the joys of being a third world country.

If you read the US threads lately, you would believe that is what a number of them think about us preferring to ship to Mexico than Canada.

I'm getting quite tired of all of it between PayPal and eBay as we pay the same in fees and dont get the same service!

Malcolm