Results 1 to 2 of 2
  1. #1
    Join Date
    Jun 2007
    Location
    Bronx, New York, United States
    Posts
    521
    Plugin Contributions
    3

    Idea or Suggestion Sales Tax, VAT, and PayPal

    I have a question regarding the VAT and US vendors.

    I noticed that as I was testing my PayPal module to work with Zencart and used a United Kingdom address, PayPal automatically added a VAT onto the customer's total and it was reported to my ZenCart installation as Sales Tax. I'll ask how to fix the PayPal/VAT naming issue in another topic but what I wanted to know is, if I'm in the United States selling goods to customers where the VAT applies, what am I supposed to do with the monies received from it? Are customers supposed to pay the VAT to me or the authority responsible for collecting the VAT?

  2. #2
    Join Date
    Jan 2004
    Posts
    66,364
    Blog Entries
    7
    Plugin Contributions
    274

    Default Re: Sales Tax, VAT, and PayPal

    That is a question you need to ask your professional tax advisor. Any answers you receive here about how to collect and remit taxes are OPINIONS ONLY and should NOT be relied upon as official accurate information. It is *your* responsibility to consult the professionals who are experts in that area, for feedback about your unique business situation.


    And now my opinion: In the past, I believe that a US merchant (based in the US, with a US address and a US bank account and a registered US business with US authorities, ie: not a UK merchant who's set up an extra US "presence") selling to a country where VAT is regularly collected does not need to charge VAT, since there probably is no collection+reporting+remitting relationship available. But, the global rules are changing.
    So, again, consult a tax professional who understands the way *your* business is set up.
    .

    Zen Cart - putting the dream of business ownership within reach of anyone!
    Donate to: DrByte directly or to the Zen Cart team as a whole

    Remember: Any code suggestions you see here are merely suggestions. You assume full responsibility for your use of any such suggestions, including any impact ANY alterations you make to your site may have on your PCI compliance.
    Furthermore, any advice you see here about PCI matters is merely an opinion, and should not be relied upon as "official". Official PCI information should be obtained from the PCI Security Council directly or from one of their authorized Assessors.

 

 

Similar Threads

  1. Sales tax VAT and the rest.
    By shiningfaery in forum Currencies & Sales Taxes, VAT, GST, etc.
    Replies: 3
    Last Post: 28 Dec 2010, 12:01 AM
  2. Display price with VAT/TAX and Ex VAT/ TAX
    By bumblebee in forum Templates, Stylesheets, Page Layout
    Replies: 2
    Last Post: 23 Mar 2010, 09:19 AM
  3. problems with Display price with VAT/TAX and Ex VAT/TAX Mod
    By rerbe in forum All Other Contributions/Addons
    Replies: 2
    Last Post: 14 Jan 2009, 04:52 PM
  4. PayPal Express and VAT Tax not working for me
    By JackDakers in forum PayPal Express Checkout support
    Replies: 1
    Last Post: 14 Jun 2008, 06:22 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
disjunctive-egg
Zen-Cart, Internet Selling Services, Klamath Falls, OR