Paypal Payments

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Enterpreneur
Posts: 1
Joined: Tue Feb 09, 2021 10:20 am

Paypal Payments

Post by Enterpreneur » Tue Feb 09, 2021 10:28 am

Hello, I am planning to have online classes using Paypal gateway method on a website.
Some people told me this is illegal since I am not paying tax on the amounts i will receive. is that right?

If yes. Is there a way to make it legal?

Thank you for your help



Paypal Payments

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DMC
Posts: 1288
Joined: Thu Nov 16, 2006 9:17 am

Re: Paypal Payments

Post by DMC » Tue Feb 09, 2021 11:53 am

I don't see how this can be true. Paypal is just the way you receive payments and it says nothing about what taxes are included in that payment or how you declare that income.

Your best action may depend on whether you are operating as a company or self-employed, I don't know. When I, operating as a company (Oy), have received payment via paypal it has been treated as just another payment. The paypal account has been treated (by my bookkeeper) as just another bank account and the income received there has been treated the same as payments made into the company's regular bank account.

If you have an accountant/bookkeeper I would ask them about how they suggest you proceed. Otherwise ask Vero.

FinnGuyHelsinki
Posts: 1174
Joined: Sun Nov 08, 2009 8:52 pm

Re: Paypal Payments

Post by FinnGuyHelsinki » Tue Feb 09, 2021 11:55 am

Enterpreneur wrote:
Tue Feb 09, 2021 10:28 am
Hello, I am planning to have online classes using Paypal gateway method on a website.
Some people told me this is illegal since I am not paying tax on the amounts i will receive. is that right?

If yes. Is there a way to make it legal?
Regardless of the payment method, you must declare your income to the tax authorities. There's nothing inherently illegal in using Paypal.

betelgeuse
Posts: 3881
Joined: Thu Aug 29, 2013 1:24 am

Re: Paypal Payments

Post by betelgeuse » Tue Feb 09, 2021 2:15 pm

FinnGuyHelsinki wrote:
Tue Feb 09, 2021 11:55 am
Enterpreneur wrote:
Tue Feb 09, 2021 10:28 am
Hello, I am planning to have online classes using Paypal gateway method on a website.
Some people told me this is illegal since I am not paying tax on the amounts i will receive. is that right?

If yes. Is there a way to make it legal?
Regardless of the payment method, you must declare your income to the tax authorities. There's nothing inherently illegal in using Paypal.
And to expand on this, you will want to go check the reporting requirements per customer country (for example, vat and sales tax issues).


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