Has Paypal suddenly started charging sales tax?


Is this new, even for interstate purchases, and even between private parties?
Does it apply just to Paypal Invoices?
Has anyone experienced this?
rgs92
If an item is shipped from a distribution center in your state, that state sales tax would apply.
@steakster is correct.
But why would PayPal charge and collect sales tax? It's the vendor who adds the tax to the selling price of the goods.

And as steakster stated, it applies to all forms of payment from an online sale; credit cards, checks, money orders.

Paypal does not charge sales tax. In some states it is required to add sales tax to the item purchased. Here is an explanation of how it works!

https://www.taxjar.com/guides/sales-tax-guide-for-paypal/#the-basics-of-sales-tax-in-the-us

PayPal doesn't charge the sales tax the vendor does.  Most on-line vendors are now required to, by state law.

Even when they didn't, the buyer was "supposed" to report this on their tax return.  Most did not, so the states have stepped in to make sure they get their money...
@mofimadness 

you gotta love them' states......
A law was just passed that allows all internet sales to be taxable.  Pay up!
Another blow to economic liberty.
If you have sold a lot of items over last few years and used PayPal to receive your funds you may have got a letter from PayPal stating this was an itemized list for you to file with the irs at tax time.

I guess they think us poor souls trying to scrape by selling older gear to fund newer gear now should pay tax on our sales as well as on our purchases..

Just another reason to give PayPal the boot as a medium for accepting payment for goods sold.
Looks like next year tax return I will have to provide both sides of my PayPal balance sheet showing I SPENT a hell of a lot more than I received.
Of course PayPal does not provide that side of the coin for you to give to irs....
Actually there was no law just passed to collect sales tax for interstate purchases.  The law has always been that the consumer is required to pay the sales tax, if any, on goods they purchase from out of state in cases where the vendor does not collect the state sales tax.  A recent SCOTUS decision ruled that it was permissable for states to force out of state vendors to collect sales tax for the state in which the consumer resides.  Some states, like North Dakota, have already provided free software to mail-order companies that will calculate, collect and submit sales taxes on purchases made by ND residents.  I expect other states to follow.  The state sales tax was always applied to out of state purchases, but prior to this ruling, mail order vendors could not be compelled by the states to collect those taxes.  That is over.  And you can thank Amazon for that one, by the way.
It's real. I had to pay state sales tax last year on my PayPal sales. They submitted a tax form to my state government.
I bought speaker cables yesterday from my pay pal account, no Florida tax was added
The Supreme Court's internet Sales June tax ruling Is billion-dollar boon for states The U.S. Supreme Court says states are allowed to collect sales taxes from online retailers that don’t have a have a physical presence in their borders. By a 5-4 vote in the case South Dakota v. Wayfair, the majority overturned the court's 1992 decision in Quill v. North Dakota, which had affirmed the “physical presence” test for state sales-and-use tax collections. This stinks big time. What will they tax next, breathing air?

@gnason - Like I posted above, this was largely the doing of Amazon.  When they started to add fullfilment centers in many states, they lost their competitive advantage of not having to collect sales taxes for most transactions.  In order to even things up with smaller e-tailers, they pushed hard to overturn Quill v, ND.  Just keep in mind that consumers were always responsible for paying sales taxes to whatever states they made a purchase from.  Quill v. ND just prevented states from compelling mail order retailers to collect and submit sales taxes from out-of-state customers.


@mantaman - IIRC, Florida has no state sales tax, just as some other states, like NH.  

Florida does has a state sales tax. We do not have a state income tax. 
@brhatten - Oops.  My bad.  A senior moment.  One of many.