Just sold an item - I see tax has been collected (Texas) - How do I remit this??

[lanstrad2007]

I am an individual (not a store) based in Canada. Just sold an item (used, not new) to someone in Texas. 

I see a USD$40 charged (and payed by buyer) in the payment confirmation. 

How do I deal with this ?? 

It's the first time I get this (out of about 2 dozens of items sold to US buyers over 10 years).

I read that eBay have systems to remit for certains states...  But what about Texas?? 

I certainly don't want to mess with them.  And I see Avalara as an option with a subscription... But **bleep** I am not interested to open up an account there for one transaction every 5 years or so...  

[recped · Accepted solution]

You don't have to "deal with it" at all.

Look at the detail for the PayPal payment, you will see that the tax collected is an instant in/out transaction, it only "sits" in your PayPal account long enough for PayPal to collect their fee.

https://www.ebay.ca/help/selling/fees-credits-invoices/taxes-import-charges?id=4121&st=12&pos=2&#sec...

eBay now collects Sales Tax for 39 US States (and Australia). Texas was added to the list October 1, 2019.

[femmefan1946]

But the BAD news is that Paypal will charge you their usual 3.4% fee for US transactions on the $40 ( ~$1.36)that passed through your PP account for a nano-second.

Nobody is happy about this.

[lanstrad2007]

Perfect! Thank you

[lanstrad2007]

And ... is that $40 equal to payable taxes? (which indeed would mean paying part of it once the commission taken) .... I’d assume it’s not higher as an informed buyer would jump on that....

[femmefan1946]

Paypal charges us a fee for processing paymentc,  of 30c plus 2.9-3.9% of the payment.

Since the Internet Sales Tax is passed through our invoice, PP includes the sales tax as part of the payment they processed.

We are only paying PP .

The 3.4% is because we pay more* to process US payments than we do for domestic (and less than overseas).

The $40 is paid by the buyer, and remitted by eBay to Texas. We don't touch a penny of it.

*FWIW we pay less for foreign payments than our US competitors who pay 4.4%.

[marnotom!]

---

@femmefan1946 wrote:

But the BAD news is that Paypal will charge you their usual 3.4% fee for US transactions on the $40 ( ~$1.36)that passed through your PP account for a nano-second.

\

---

. . . because PayPal's charges are based on the "transaction value" and the sales tax adds to the total transaction value.

(I know you know this; I'm just posting this in case anybody else new to this development is reading this thread.)