PayPal offers no goods or services for sale. They are merely a payment platform to allow people to make, and receive payments via said platform for a fee (paid by the seller.) They do not have the right to collect tax from a buyer (the person who sends the money; although they can charge a fee if you try to send money over a certain threshold as a gift.) For example, I go to a restaurant for lunch and pay via PayPal. The restaurant has already included sales tax in my total, and therefore PayPal cannot add an additional sales tax. This would essentially amount to double taxation. And it would actually be “double secret taxation” as they would be taxing the total with the sales tax already included. Note, this is purely informational and is not intended as legal advice.