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PayPal VAT & Tax Problem

Discussion in 'Business & Tax Advice' started by maverick927, Dec 22, 2011.

  1. maverick927

    maverick927 Newbie

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    Hi,

    I have a website where I sell YouTube services like likes, subscribers, comments, video views and channel views.
    I am currently using Plimus as my payment gateway. As some of you might know Plimus now wants us to attach our own PayPal account to be able to accept PayPal payments from buyers. So I attached my PayPal account and all is going well till I received an email from Plimus saying "Problems Charging VAT & Sales Tax Using PayPal Basic Integration" and I can't use PayPal until I update my VAT & Tax in my PayPal account.
    Now my question is where can I find a table with percentage of VAT or Tax I should be collecting from my buyers based on their country or something else. I am from India. Can anybody who have experienced with this kind of problem please help me out of it? At the moment I am unable to accept PayPal payments and that is hurting my business very badly. Or can someone tell me about an alternate payment gateway that does this for me automatically?
    Please need some help and advice on this.

    Thank you.
     
  2. bakxos

    bakxos Regular Member

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    Are you vat registered?
     
  3. piskonet

    piskonet Newbie

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    it might be country problem, paypal rates are to high in some countries like India
     
  4. bakxos

    bakxos Regular Member

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    If you are not vat registered, you cant collect vat. Its illegal. You collect vat from consumers to give it to the taxman.Therefore, if you are not vat registered, you dont give and thus should not collect.

    There should be an option to opt out from vat. You cant charge vat if you are not vat registered.
     
  5. maverick927

    maverick927 Newbie

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    I can pay Income Tax. I don't know what you mean by VAT registered.

     
  6. dheer

    dheer Jr. VIP Jr. VIP Premium Member

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    I'm wondering why you are yet using plimus if you can directly take orders at your paypal account?

    Now plimus is directing all the payments to your paypal so why you don't just switch your plimus buttons to paypal buttons and all will be well.
     
  7. bakxos

    bakxos Regular Member

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    Income tax is not relevant to vat. Google is your friend since I have no idea how vat is implemented in India.

    Please read my above post and you will understand that the only reason for collecting vat is to pass it to the state. You can claim vat on your expenses but that is not applicable when you are not vat registered.

    If you dont pay vat, you cant collect vat. Thats how things in the UK and in the EU work. Search for India but i assume that it should be similar.
     
  8. maverick927

    maverick927 Newbie

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    Yes I might just do that as I am starting to dislike Plimus. Have been using them for two months now. Will just update all my payment links to PayPal.