Possible to make distinctions in VAT for business/private in Paypal? - paypal

To comply with VAT rules in my home country I need to set up a system where my customers are charged the right VAT amount when they purchase something on my site and I was wondering if this is possible from inside Paypal.
In the PayPal configuration pages, I can set a VAT percentage per country. This is however not sufficient, according to the laws here I need to charge:
21% to ANYONE from my own country (that's the Netherlands)
0% to anyone outside the EU
For all other EU countries, I need to charge 21% if they are a private person, 0% if they are a business (have a VAT number).
Would it be possible to set something up in Paypal so that EU-business customers can fill in their VAT-number and are charged 0%? If not, would it be possible to add an extra field where customers pay, that only shows up for people logging in from within the EU (saying that they need to contact us if they want a VAT-free transaction)?
Hope anyone could help with this..thanks in advance for any time taken!

I had the same problem complying with new EU VAT law. I used Taxamo to solve this.

Related

Online store for Turkey with USD currency

I want to open and online store. I live in India, I will manage website and everything from India but my target customers are from Turkey. I want to integrate Paypal international payment for my website. But when my customers want to make payment in Turkish currency, PayPal is asking for PayPal account, not accepted for credit and debit card.
Turkish currency payment is not supported by credit and debit cards. That's why I'm thinking to fix the prices in US Dollars for selling the items from my website. Do you think that I can sell my items by US dollar in Turkey and credit and debit card option can work like this?
Short answer: you need to understand what country/jurisdiction "you" -- meaning whoever is in business here -- is in and then look up and abide by the policies (from the governments and from PayPal, which is subject to those governments). Then you can determine how currency will interact with that.
While the specific answers to these questions will change over time as regulation and products change, right now you are basically out of luck accepting PayPal payments with an Indian company due to PayPal's inability to operate in line with government regulations there. A Turkish company would not face the same issues (PayPal operates and offers more services in Turkey) but would be subject to other issues. And if you are not sure what country you are or should be operating in you need a business lawyer not a StackOverflow crowdsourced opinion :).
Changing the currency of the transaction to USD does not affect the nationality of the company (or individual) conducting the ecommerce. In some cases USD may avoid some regulations or issues, but in other cases it can introduce very serious issues (many countries,such as China, seriously restrict their citizens' ability to deal in nonlocal currency).

PayPal micropayment

I m planning to integrate micropayment in my ASP.NET website. I need to use PayPal to achieve this.
The cost of the service I deliver is low, about $1 per month. I'd like to know more about PayPal service for this kind of cheap transactions.
How much does PayPal hold for each $1 payment ? I found this explaining the PayPal conditions for micropayment. Any feedback on this ?
Plus, how does PayPal handle currency conversion ? My service is worldwide, so I want my users to be able to buy my product not only using dollars, but euros or another currency.
Thanks
In the link you quoted the fees section is expandable and you can see the Micropayments pricing:
5% + $0.05
Signing up for it doesn't require any vetting or contract changes. Contact Customer Service and they file a request to a team that enables Micropayments. Should be done within a few days.
Currency conversion and cross-border transacitons are also in this page:
International Sales: The pricing table above applies to domestic payments in US dollars. There's an additional 2.5% charge for any currency conversion and a 1% charge to receive payments from another country.
If you decide to charge your buyers in USD only, they will be able to choose if they wish he card issuer or PayPal to convert the money. Most won't even notice the conversion took place and it will make your reconciliation much easier.

Delivery to specific postcodes

I'm trying to figure out how to set different shipping charges dependent on different post code areas at paypal checkout?
At the moment the courier company I use for delivery from my website charge a flat rate for most of the UK, but some islands and outlying areas are charged more for postage.
These areas are identified via their postal code, however I cant seem to find how to change the postal charges in relation to the postcode entered by the customer.
At the moment someone from an Island could easily buy and pay for something without paying extra for postage as specified on my website.
Thanks for your help......
Look into Standard implementation of PayPal Express checkout (no callback). This way after the user completes the transaction on PayPal, he is taken back to your site and you can charge him whatever you need to based on the address from PayPal.

Paypal: Billing & Shipping addresses in different countries?

I think these are pretty close to being non-coding question, but it has everything to do with my current efforts to implement express checkout using paypal NVP API and X.com is absolutely garbage compared to stackoverflow.
So here's what I know, followed by some questions:
If you are a USA paypal user (which means - you have a USA Billing address), you can only set a shipping address to USA. Even if the website tries to force an international address via NVP during "SetExpressCheckout", it will ignore it and use a USA address within the users paypal account. If the user wants to manually put in a non-USA address, he can't - it's stuck to USA only.
If you are NOT a USA paypal user (i tested with germany & canada), you can have your shipping and billing be in 2 different countries. Instead of being locked in, there is a dropdown field allowing you to select a different country.
Questions:
1) Why is this for USA... but not for places like germany and cananda (what's the politics/laws/paypalpolicies)?
2) Does this mean that germany & canada is less protected by paypal than USA? I'm assuming the tigher requirements must mean that paypal has "safer" policies in the USA and therefore better protection?
3) My store is an international gift store, so the shipping & billing being in different countries happens 100% of the time. Can I turn off shipping addresses in paypal by making it a digital purchase, and when I do, am i still using paypal safely?
Thanks
1 and 2: Two words: Risk analysis. Another two words: historical data I'd imagine.
I don't have any idea of PayPal's inner workings when it comes to that, but I presume it's something along those lines.
3: Yes, set NOSHIPPING=1 in your SetExpressCheckout API call and a shipping address won't be collected. Note that you won't be eligible for PayPal Seller Protection in this case though.

Micropayment processing using Paypal or other payment processing service?

Currently, I use PayPal for payment processing. Almost 90% of the items are sold for $.99 and would like to use Paypals's Micropayment account, but PayPal states "support for Micropayments to merchants for US to US, GB to GB, AU to AU, and EU to EU transactions". My company is located in the US but the customers are very global. Does this mean using Micropayment option, I can't take payment from someone who lives in Europe or outside the US? Currently I am using the regular account and I am paying $.34 for each sale, which is very unprofitable. Are there other payment processing service I can use with lower fee?
Thank you.
Unless you have insanely high volume like fast-food chains do, it is very difficult to obtain a merchant account where the transaction pricing is feasible for micro-payments. Most providers will suggest an aggregation model where you sell your content but only bill your customers periodically, i.e. bill them once a month so that several purchases are bundled together, making the transaction fees less of an impact.
Here is one provider offering such a model:
http://www.allcharge.com/services-billing-micro-payments.asp
I do not work for the above company (in fact, I work for a payments company that does not offer micropayments).
Not the answer you were hoping for, I'm sure, but hopefully it helps.
Take a look at www.carrot.org which runs a micropayment system. Customers using carrotPay load funds into an electronic purse - WebPurse - and can make payments with 2 clicks if you have a Carrot buy button installed on your site. The buy button can be set up along side other payment methods on your site. The webpurse automatically converts the currency so if your client has GBP in their purse, they will be presented with a GBP price for authorisation but the merchant receives USD if this is the currency they used to price the product. Charges work out at 6% - 10% maximum. The Webpurses can also used for some kind of loyalty schemes as they will store many different currencies, real and virtual. If you would like more information please contact andy#carrot.org
Take a look at Google's In-App Payments. The fee is a flat 5% which is great for transactions
http://code.google.com/apis/inapppayments/
I do work for Google, but I've taken a look at other similar products and can honestly say that In-App Payments is a very competitive product.
You can use Randpay - scalable micro-payment system, based on blockchain: https://medium.com/#emer.tech/randpay-6a028f16c82a