PayPal Invoices......

Discussion in 'Tips/Tricks & Trolls' started by Mut1ny, Apr 28, 2018.

  1. Mut1ny

    Mut1ny [H]ard|Gawd

    Messages:
    1,854
    Joined:
    Apr 4, 2013
    Anyone else refuse to do them? From what I can tell they provide no further protection and are just a waste of my time. Am I missing something or are people just under false ideals?
     
  2. Kuurus

    Kuurus [H]ard|Gawd

    Messages:
    1,188
    Joined:
    Nov 18, 2010
    I only use them If someone needs a physical receipt with a detailed written description of what they purchased for various reasons.
     
    Chapeau and atp1916 like this.
  3. usyed1

    usyed1 [H]ard|Gawd

    Messages:
    1,214
    Joined:
    Jun 13, 2012
    No, invoice is a useful tool for more expensive used items.

    PayPal seller protection is nearly non existent. Theirs tons of protection for the buyer but specifically seller protection although mentioned by PayPal is near impossible to get. Being able to detail exactly what you're selling... and also listing any faults in detail IS important.

    I sold a Lenovo Y50-70 i7 gaming laptop in June of last year. Sent pics to the guy and let him know it works flawlessly but has some body damage.

    He changed his mind and claimed I sold him a damaged item... Except I had listed the damage extensively in the invoice and mentioning the sale was as-is.

    I WON that PayPal dispute. Their's no way I would have won that if I just let him pay. I would have never been able to list the fact that it was as-is and with cosmetic damage.

    I don't think you understand how significant that is. It's damn near impossible to win a PayPal dispute as a seller.

    PayPal invoice isn't useless at all. It's not needed for little shit like $100 to $200 bucks. But it's useful on high value used hardware.
     
    Last edited: Apr 28, 2018
    BoiseTech, Aenra, Chapeau and 5 others like this.
  4. cdabc123

    cdabc123 2[H]4U

    Messages:
    2,168
    Joined:
    Jun 21, 2016
    i have done larger sales with 20+ different items or a large quantity of items for all of those its nice to have a list of everything so both parties know exactly whats being exchanged. and they are pretty dang quick to do i feel it would take more time to say "i dont do invoices" then to just do it.
     
    Aenra and janas19 like this.
  5. atp1916

    atp1916 [H]ard|DCoTM x1

    Messages:
    3,680
    Joined:
    Jun 18, 2004
    I will gladly do invoices if requested.
     
    kirbyrj likes this.
  6. Chapeau

    Chapeau Gawd

    Messages:
    749
    Joined:
    Jul 17, 2016
    Glad to hear it worked out for you.

    I actually learned something from this post.Thanks!
     
  7. WorldExclusive

    WorldExclusive [H]ardForum Junkie

    Messages:
    10,849
    Joined:
    Apr 26, 2009
    I have refused to do invoices in 99% of cases. Be prepared to pay taxes on any invoice you issue.
    The people who requests them use it as an expense write-off. So long as you understand an invoice is an official business transaction, not a forum trade.
     
  8. usyed1

    usyed1 [H]ard|Gawd

    Messages:
    1,214
    Joined:
    Jun 13, 2012
    That's absolutely not true. Nor how it works with PayPal and taxes.

    I've run 3 PayPal large merchant accounts doing tens of thousands of dollars of sales every month both on eBay and forums since 2008-onwards.

    The IRS will not pursue you for PayPal sales income until and unless you are issued a 1099-k by either PayPal or your client. Using invoice or goods is entirely irrelevant. Even if your client uses the invoice as a tax write off. It doesn't matter. They don't pursue each individual tax write off, that would be ridiculously difficult and near impossible for them to pursue every tax write off for every company that files taxes. They go directly to the source.

    A client using an invoice they paid you for as a tax expenditure will NOT cause you to end up paying taxes.

    A 1099-K however will cause the IRS to come after you for their pound of flesh. As long as you are not issued a 1099-K you are safe.

    I've been using primarily invoice for 10+ years now.

    You using invoice versus direct goods payment makes absolutely zero difference when it comes to having to pay taxes.

    Heck a company can use a printout of a direct goods payment as a write-off just as easily.

    Taxes are your responsibility regardless on both, however PayPal/IRS will not come knocking for taxes any more for invoice than direct goods payments. The key to that is getting a 1099-k sent from PayPal to the IRS in your name.

    Concerning getting a 1099-K:

    PayPal issues a 1099-K only if you reach 20,000 USD in goods transactions AND 200 total transactions (must be both). That means you can do 75k sales for the year and keep your number of transactions at 180 and you will NOT get issued a 1099-K.

    Massachusetts and Vermont are the exception, they required paypal to issue a 1099-k starting this year for almost everyone using PayPal (requirement was set as 600 total in any number of transaction for the year)


    Anyways, if you don't get issued a 1099-K....NO IRS/Tax enforcement. I use the word enforcement here because technically you're still required to pay on all income, however it's just not enforced without a 1099-K for PayPal.
     
    Last edited: Apr 30, 2018
    atp1916, Aenra and Ins0mnyteq like this.
  9. Gillbot

    Gillbot [H]ardness Supreme

    Messages:
    7,535
    Joined:
    Feb 27, 2001
    I also like invoices because it can help alleviate typos when sending payment. I've had people send me their paypal email and mis-type it so if they send an invoice, I know the payment is going to the right place.
     
  10. scgt1

    scgt1 [H]ardness Supreme

    Messages:
    5,092
    Joined:
    Jun 4, 2007
    Invoices also benefit those that want to use Paypal Credit and take advantage of the 0% for 6 months. You used to be able to just do normal pay for goods and get this but they amended the rules I believe July 2018 to where normal goods purchases were treated as a normal transfer funds transaction in turn the Paypal Credit account user would then be charged interest on said purchase. The invoice is treated as a sale therefore qualifies for promotional financing.

    The notes section on a goods transaction really doesn't hold the same weight as having the detailed item listed along with any description notes about what is being sold. IE an invoice will hold much more weight should a claim be filed then just a note on a goods purchase.
     
  11. Gillbot

    Gillbot [H]ardness Supreme

    Messages:
    7,535
    Joined:
    Feb 27, 2001
    The other benefit of an invoice is to be certain the right email is used. It's easier to cancel an invoice than it is to reclaim a payment to a wrong address.
     
    atp1916 likes this.