Taxation

2 replies [Last post]
mdlepage
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Joined: 11/18/2009
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Answered

Hi Leighton,

Just weht live with a new site and Membership suite earlier this week.  Have processed 1 membership purchase so far.  Encountered a problem where %5 taxation rate was setup in my paypal business account profile for all transactions, however it was not applied when our first customer made their purchase.

Spent much time on the phone with Paypal and they have suggested it something to do with my "3rd party" integration.  Do you have any insight on this? 

They are apparently forwarding to me some technical information on the topic which I can post here when received.  But any thoughts in the meantime?

Thanks,

Michael

admin
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Joined: 09/17/2008
I've never used the tax

I've never used the tax feature of PayPal, but it seems like it is something that would only apply to their system. It is possible that the 5% tax rate doesn't apply to subscriptions, or it is also possible that it only works for PayPal generated buttons.

One idea is you could simply add the 5% tax into the amount you charge.

Sincerely,
Leighton Whiting

admin
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Joined: 09/17/2008
I did some researching on

I did some researching on this and it looks like the PayPal tax feature only applies to 'Buy it Now' items, not subscriptions. So you can either add the 5% tax rate into the subscriptions price, or sell your membership without recurring subscriptions.

Sincerely,
Leighton Whiting

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