Q:

Paypal - Sales tax on refund of Payment

Does Paypal charge Tax on refund of a Paypment.
I made a refund of an item on Paypal Sandbox. The item had a sales tax of 0.25 on it.
When I call the getTransactionDetails API to get the details of that refunded transaction I get 0.25 amt in SalesTax field of that transaction. But when I check details of that transaction by logging into Paypal Sales tax is not shown for that refund.
So is Sales tax charged on Refund or is it an API error
Thanks in advance for your help! 

A:

Got this reply from Paypal support
PayPal does not charge any taxes on transactions - we apply a flat fee and a fee based on the amount of the transaction. Whatever you charge in taxes is being reflected with the tax variable.
So for this case, the tax variable listed is merely the tax amount that was applied to the original transaction.

