ConsumerLink: Setting Up PayPal to Charge Sales Tax

KB Article #3456

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Note: This process is only applicable for ConsumerLink Basic or ConsumerLink Legacy accounts. For ConsumerLink Pro users, please contact your Customer Success Representative.

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Before you proceed...
Since every state has different requirements, you will need to consult with your finance department to determine the following before you can complete this process: (OEC cannot determine this information for you.)

1. The sales-tax rate(s) your business should use. 
2. If your state requires you to charge sales tax for shipping charges.

Click here if your PayPal Account page looks like this:

Click here if your PayPal Account page looks like this:

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To set up your sales tax rates using PayPal:

1. Log into your PayPal account.
2. Click the Profile link.
   
3. Click My Selling Tools from the drop-down.
   
4. Click Update for the Sales tax option.
   
5. Click Add New Sales Tax under the Set Up Domestic Sales Tax Rates section.
   
6. Depending on how sales taxes are applied in your state, you have the option to add a single sales tax rate for a state and/or multiple rates by zip code. To add your Domestic Sales Tax rates:
   • Add your sales tax by state:
     1. Locate and click your State from the list.
        
     2. Type the Tax Rate in the box provided.
        
     3. If your state requires that you apply sales tax to your shipping charges, check the Apply rate to shipping amount box.
        
     4. Click Continue.
   • To add sales tax by zip code(s):
     1. Click Zip Code from the Configure Sales Tax by options.
        
     2. Type the specific zip code(s) in the box provide. Use a comma when adding multiple zip codes.
        
        -or-
        Click the Range option to add all zip codes between two numbers. (Example: Type 44300 and 44400 to add all zip codes between these two numbers.)
        
     3. Type the Tax Rate in the box provided.
        
     4. If your state requires that you apply sales tax to your shipping charges, check the Apply rate to shipping amount box.
        
     5. Click Continue.
7. Your new sales tax information will display. If needed, click Add Another Sales Tax to include additional tax rates.
   
8. Once all rates have been added, click Back to My Profile.
9. Click the Profile link.
   
10. Click My Selling Tools from the drop-down.
    
11. Click Update for the Instant payment notifications option. This option will allow PayPal to send your new sales tax information to your ConsumerLink storefront.
    
12. Click Choose IPN Settings.
    
13. Add either your ConsumerLink address or your storefront address in the Notification URL box. Note: If you have multiple ConsumerLink storefronts (for different OEMs), you just need to add a single URL. (You do not need to repeat this process for all URLs.)
    
14. Click the Receive IPN messages (Enabled) option.
    
15. Click Save.
16. A confirmation message will display, close PayPal to complete this process.
    

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To set up your sales tax rates using PayPal:

1. Log into your PayPal account.
2. Click the Business Profile icon (next to Log Out).
   
3. Click Profile and settings from the drop-down.
4. Click My selling tools from the My Profile options.
   
5. Click Update for the Sales tax option.
   
6. Click Add New Sales Tax under the Set Up Domestic Sales Tax Rates section.
   
7. Add your Domestic Sales Tax rates:
   • To add sales tax by state:
     1. Locate and click your State from the list.
        
     2. Type the Tax Rate in the box provided.
        
     3. If your state requires that you apply sales tax to your shipping charges, check the Apply rate to shipping amount box.
        
     4. Click Continue.
   • To add sales tax by zip code:
     1. Click Zip Code from the Configure Sales Tax by options.
        
     2. Type the specific zip code(s) in the box provide. Use a comma when adding multiple zip codes.
        
        -or-
        Click the Range option to add all zip codes between two numbers. (Example: Type 44300 and 44400 to add all zip codes between these two numbers.)
        
     3. Type the Tax Rate in the box provided.
        
     4. If your state requires that you apply sales tax to your shipping charges, check the Apply rate to shipping amount box.
        
     5. Click Continue.
8. Your new sales tax information will display. If needed, click Add Another Sales Tax to include additional tax rates.
   
9. Once all rates have been added, click Back to My Profile.
10. Click the Business Profile icon (next to Log Out).
    
11. Click Profile and settings from the drop-down.
12. Click My selling tools from the My Profile options.
    
13. Click Update for the Instant payment notifications option. This option will allow PayPal to send your new sales tax information to your ConsumerLink storefront.
    
14. Click Choose IPN Settings.
    
15. Add either your ConsumerLink address or your storefront address in the Notification URL box. The ConsumerLink URL can be retrieved directly from the OEC Dealer Portal. Note: If you have multiple ConsumerLink storefronts (for different OEMs), you just need to add a single URL. (You do not need to repeat this process for all URLs.)
    
16. Click the Receive IPN messages (Enabled) option.
    
17. Click Save.
18. A confirmation message will display, close PayPal to complete this process.