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11/29/2006 08:06:31 PM · #1 |
I thought I remember reading here (or somewhere) once, that when you send money to someone using PayPal if you pick a specific "category" you could avoid having them pay tax or a fee or something. Anyone know anything about this?
The category choices are:
eBay Items
Auction Goods (non-eBay)
Goods (other)
Service
Quasi-Cash
It's not an auction. So, I guess my question is, will choosing between "goods" and "service" have a different effect on the amount the person receives?
Edit: I should also add, the recipient is in Malaysia.
Message edited by author 2006-11-29 20:08:29.
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11/29/2006 08:10:12 PM · #2 |
I use paypal many times a month through ebay. However, I'm not sure if I can answer your question.
Hmmmm
Tax? As long as the person buying the item is in a different state than you, then they don't pay state sales tax.
Since there is not a federal sales tax, then there would be no tax paid.
Maybe someone could add to this...
Kenskid
Originally posted by ButterflySis:
I thought I remember reading here (or somewhere) once, that when you send money to someone using PayPal if you pick a specific "category" you could avoid having them pay tax or a fee or something. Anyone know anything about this?
The category choices are:
eBay Items
Auction Goods (non-eBay)
Goods (other)
Service
Quasi-Cash
It's not an auction. So, I guess my question is, will choosing between "goods" and "service" have a different effect on the amount the person receives? |
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11/29/2006 08:10:37 PM · #3 |
I don't think it would. I sold stuff outside EBay and was paid through PayPal under the 'goods' category and PayPal just took their normal percentage. Use the help feature to check PayPal's policies. I don't think it'll make a difference.
Added: To Kens post - Sales Tax is the sole resposibilty of the seller. PayPal doesn't act as a middleman for the gov't.
Message edited by author 2006-11-29 20:12:02.
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11/29/2006 08:14:14 PM · #4 |
My guess was that Quasi-Cash should be free. But the time I tried to use it I was using a credit card and it warned me that my credit card company might view the transaction as a cash advance, so I bailed.
Anyone else ever used Quasi-Cash? |
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11/29/2006 08:14:18 PM · #5 |
Thank God !
Added: To Kens post - Sales Tax is the sole resposibilty of the seller. PayPal doesn't act as a middleman for the gov't. [/quote]
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11/29/2006 08:22:00 PM · #6 |
From PayPal's site:
Fees for receiving payments from buyers in the United States
Monthly Sales Price Per Transaction
$0.00 USD-$3,000.00 USD 2.9% + $0.30 USD
$3,000.01 USD-$10,000.00 USD 2.5% + $0.30 USD
$10,000.01 USD-$100,000.00 USD 2.2% + $0.30 USD
> $100,000.00 USD 1.9% + $0.30 USD
I couldn't find anything about different 'types' of payments (i.e. goods, service, etc). I think that's there mostly for your own record keeping.
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11/29/2006 08:22:53 PM · #7 |
I could be wrong, but I believe the fees originate from where the money is coming from. The fee is based on whether or not a credit card is used. If you transfer money to someone using a bank account instead there should not be a fee. I would also use the "service" designation. This should be somewhere in their TOS.
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11/29/2006 08:25:29 PM · #8 |
If you fund a Quasi-Cash payment with a credit card, your card issuer may charge you the appropriate cash advance fees and interest rates. If you fund the payment from a bank account or an existing PayPal balance, it shouldn't matter.
~Terry
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11/29/2006 08:32:31 PM · #9 |
Originally posted by kdsprog:
I could be wrong, but I believe the fees originate from where the money is coming from. The fee is based on whether or not a credit card is used. If you transfer money to someone using a bank account instead there should not be a fee. I would also use the "service" designation. This should be somewhere in their TOS. |
That depends on the type of account. Premier and business accounts are subject to fees on all payments received, but there is no limit on payments received.
The only way the location of origin is an issue is if a currency conversion is involved - the recipient is charged a 1% conversion fee is charged in that case, in addition to any transaction fees.
~Terry
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11/29/2006 08:41:36 PM · #10 |
Thanks everyone.
Terry, I think that's what I wanted to know. Thank you.
I know it's free for me to send money, just thought I could save the recipient a little.
Thanks again!
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