paypale-commercemerchant-account

Configuring PayPal "combined" tax rates in merchant accounts


Does anyone know of any way to easily manage the combined tax rates at a more localised level that state in the US? For example, in Virginia we would have 2 separate combined tax rates such as the following:

According to the sales tax rates config screen in the merchant account (https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/Marketing/shipping/EasyCalculateShipAndTax-outside%20) we can only set a tax rate per state, not at the city or county level, or by ZIP code? Is this a general limitation in PayPal?

In our e-comm platform we have 1000's of entries that provide the combined rate at the localised level as per the sample above, however if we have the pay by PayPal button on the cart page (BEFORE the shipping address is known) then we have to rely on the sales tax settings in PayPal, and if we can only set rates per state, then it would not be feasible to offer payment by PayPal from the cart page.

Does any know of any US e-comm sites that offer PayPal payment prior to the shipping address being known or it this simply a business case Paypal does not support?

Thanks in advance, Sean


Solution

  • You can set your sales tax up by zip code in your profile and that is what I would recommend. Add the 2 tax rates together and create a domestic sales tax rate of 11.3% configured to the zip code. Here's how to do it.