Does Paypal charge Tax on refund of a Paypment.
I made a refund of an item on Paypal Sandbox. The item had a sales tax of 0.25 on it.
When I call the getTransactionDetails API to get the details of that refunded transaction I get 0.25 amt in SalesTax field of that transaction. But when I check details of that transaction by logging into Paypal Sales tax is not shown for that refund.
So is Sales tax charged on Refund or is it an API error
Thanks in advance for your help!
Got this reply from Paypal support
PayPal does not charge any taxes on transactions - we apply a flat fee and a fee based on the amount of the transaction. Whatever you charge in taxes is being reflected with the tax variable.
So for this case, the tax variable listed is merely the tax amount that was applied to the original transaction.
Related
I'm trying to develop a flow with PHP t send funds to our community.
When we sell a product, we receive amount from a customer, and after certain days send the amount to seller.
I have used PayPal payouts API for send money to seller, but, when I send funds, PayPal charge fees on my account... the seller receives a full amount.
How I can send the amount to seller without charging fees to my funds?
How to send funds and charge fees to recipient
What you are asking is a simple accounting matter. Calculate the fee that will be charged, and send your amount to the recipient minus that fee amount.
I am integrating PayPal with my site and testing in sandbox.
When the buyer opens a dispute in PayPal Resolution Center to requests a refund, then we receive an IPN with payment_status = Reversed (the refund amount requested by the buyer is removed from the seller's account balance).
Then if the seller agrees to send the full refund, closing the case, then we receive an IPN with payment_status = Canceled_Reversal (the refund amount requested by the buyer is returned to the seller's account balance) and another IPN with payment_status = Refunded (the refund amount requested by the buyer is removed from the seller's account balance and finally returned to the buyer's account balance).
This is the IPNs' payment_status sequence for such case: Reversed > Canceled_Reversal > Refunded
However, the issue occurs when the seller offers a different refund amount to the buyer, who agrees with it, getting the offered amount back and closing the case.
This is the IPNs' payment_status sequence for such case: Reversed > Refunded
It seems to me that the IPN with payment_status = Canceled_Reversal is missing. I need it for financial purposes.
What is wrong? Am I misunderstanding anything?
It is unclear how much paypal charges when we do mass payment from our application.Would anybody let me know the details.
currently i found "For Mass Payments to recipients within the U.S., the fee is 2% of total up to $1 per payment. For Mass Payments to recipients outside the U.S.,the fee is 2% of total up to a maximum of $20.00 USD per payment, or the foreign currency equivalent of $20.00 USD."
information in paypal site.
what if i send 6000 $ to one/two user?Any answers and suggestions would be highly appreciated.
Paypal is very poor in documentation and do not have intuitive guide.
Thanks.
For example in the case of your 6000 dollar transaction. If it is a Domestic transaction you would be charged $1 fee for that transaction and if it was international it would be $20.
The breakdown is basically as the information you provide. Each transaction is charge to either the percentage or the fixed amount, whichever is lower. This fee is charged for each payment in your request. So if domestic a 50 transaction request would be a maximium of $50 or $1 per transaction. While internationally this would be $1000 for the same 50 transactions.
Use-case
A Trading-platform for selling goods where each subscriber can purchase and sell ( eg. eBay )
Trading-platform takes commission for each transaction
Flow of actions
Buyer execute a purchase
Funds are transferred from the buyer account to the Trading-platform account
PayPal takes it's transaction commission
Trading-platform takes it's commission
Trading-platform transfer the reminding funds from it's account to the Seller account
PayPal takes it's transaction commission
Problem at hand
As can be seen in the above 'Flow of actions' PayPal will charge for commission twice
this composite transaction model considerably complicates implementation/cost.
Feedback required
Is there any payment model with which this can be avoided?
Is there any payment model where for each transaction a subset of the total sum is sent to the trading platform account ?
Any help will be appreciated
You could use Adaptive Payments for this. With Adaptive Payments, you can split payments up and set who pays what fees.
Using Paypal's Adaptive Payments API, I am selling physical items that require a ship to address - on the Paypal purchase page I inform Paypal to have the customer select an address. If I have sales tax rules set up on my merchant account, how do I get Adaptive Payments to add sales tax to the order - I hand it the subtotal, and based on the state in the address the user selects, it calculates and adds the sales tax to that subtotal for a grand total?
Isn't this the entire point of Paypal - customer provides this information to Paypal, and then provides me only the information I need for the transaction?
You're right but AFAIK, since PayPal does not want to keep tax rates which differ for countries and type of goods you ship. So, you can either try using
GetShippingAddresses
api call before executing the payment, and add
totalTax
information during
SetPaymentsOptions
call..
Doesn't seem to be able to compute this on its own - I ended up keeping a hack of a solution in place. Prompt the user to provide the state to which the goods will be shipped to, and then calculate the tax on my own before sending the order total (subtotal + tax) to the Paypal workflow. Disappointing, IMO.