2 replies to this topic

[spectr17]

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.

[iiinetworks]

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

[fgwhite]

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.