Has Paypal suddenly started charging sales tax?

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