Thread: PayPal & country taxation

PayPal & country taxation

Hi all, I'd like to ask for some help with Classipress and PayPal, particularly with regard to the amount passed through to PayPal.

In Australia we have a tax obligation to charge 10% GST (Goods and Services Tax) on transactions.

In my Classipress site I have set a price of $5.00 for a Featured Ad, and have decided that I will wear the tax (so the transaction will be $4.54 Featured ad + $0.46 (10%GST).

Classipress transfers the amount of $5.00 through to PayPal but PayPal doesn't allow me to specify a tax rate and have it included in the amount received from Classipress. PayPal will allow me to setup up a tax amount for Australia (10% GST) but if I use this so that the amount displays on the transaction it ADDS the 10% to the amount transferred from Classipress. (So my $5.00 becomes $5.50 incl. GST) Very annoying for customers.

If I choose not to use the country tax code within PayPal the PayPal transaction advice shows GST 0% which will raise questions for the purchaser, but perhaps also the Tax Office

Can anyone tell me if its possible to have the amount transferred from Classipress deduct the 10% during the transfer to PayPal process and how we would do this?

I imagine that this has been a problem with different tax regimes around the world, but I haven't been able to find a solution in forum posts.

Thanks for any help. - Clay