spectr17 Posted December 17, 2003 Share Posted December 17, 2003 How do you report and track PayPal sales? For example we sell an item for $100.00. PayPal takes their 2% and our company nets $98.00 on the sale of the item. For taxes do we report the sale as the whole $100 or just that we made $98.00? Do we show the $2.00 that went to PayPal as a business expense to conduct the sale? Thanks. ~spectr17 Link to comment Share on other sites More sharing options...
Guest Posted December 17, 2003 Share Posted December 17, 2003 I think that you would be far better off asking an accountant in your locale (laws differ around the english speaking world). I would count $100 as the sale and the $2 as a Credit Card fee. At least that is how I used to do it when I had a retail store (with a more traditional merchant account). Hth, Matt Link to comment Share on other sites More sharing options...
fgwhite Posted January 3, 2004 Share Posted January 3, 2004 My state, NC, considers the price selling price as the basis for collecting sales tax. Hence, the selling price of $100 in your example is the basis for taxation. You might be able to get away with charging an untaxable "PayPal Surcharge" so that the selling price is $98 plus a 2% ($2.00) surcharge. I suspect that the administrative headache my make this unfeasible. I suggest you contact your state's Dept. of Revenue for help. Thanks! Frank Ever wish people could recover from a "fatal error?" Link to comment Share on other sites More sharing options...
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