Sales tax not receiving in paypal Recurring Payments

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  • I am integrating paypal with my wordpress site. Website has a button to pay with paypal.

  • Into my paypal profile settings page, i added some states where each state has different tax rate (i.e Ontario=15% & Quebec=10%). But this tax rate not being charged from user or not showing in Recurring payments.

Example: User selected a product of $65 and made a payment of $65 using paypal button on the website, when user comes on paypal page, he was shown $73.45 (because the sales tax rate is about 15% and he selected the state where this tax should apply). He completed the process and redirects back to website with a confirmation receipt of $73.45. Up to this all is well.

Here is the screenshot showing to user just before payout. enter image description here

Now when administrator/ seller login into the paypal account, there he could not found the $73.45, instead the $65 is showing up. Here is the screenshot: enter image description here

Questions : Why the tax amount is being deducting? Is there any other settings which i am missing? Should not be this tax rate added in total amount in recurring payment?

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