[Skip to main content](#vessel-content) # When customers use paypal they are charged tax ## - **[daylily](/forum/user/36343-daylily "View daylily's Profile")** - [![daylily's Avatar](https://www.hikashop.com/media/kunena/core/svg/person.svg)](/forum/user/36343-daylily "View daylily's Profile") Topic Author - [ Offline](/forum/user/36343-daylily) Less More - Posts: 16 - Thank you received: 1 - - 10 years 6 months ago [\#235537](#235537) by [daylily](/forum/user/36343-daylily "View daylily's Profile") *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235537 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* was created by *[daylily](/forum/user/36343-daylily "View daylily's Profile")* -- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution. Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[nicolas](/forum/user/63-nicolas "View nicolas's Profile")** - [![nicolas's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar63.png)](/forum/user/63-nicolas "View nicolas's Profile") - [ Away](/forum/user/63-nicolas) Less More - Posts: 86290 - Thank you received: 14268 - - 10 years 6 months ago [\#235544](#235544) by [nicolas](/forum/user/63-nicolas "View nicolas's Profile") Replied by *[nicolas](/forum/user/63-nicolas "View nicolas's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235544 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* Hi, Mmm. What you're describing is quite strange. At the end of the checkout, HikaShop creates the order with the tax that the customer must pay based on his address in HikaShop. It's possible that PayPal adds additional taxes if you configured taxes in your PayPal merchant account (and you shouldn't do that). However, in that case, it means that the amount paid in PayPal will be different than the amount in the order in HikaShop and HikaShop doesn't reflects that in the order, or uses the address entered in PayPal by the customer in the order. ... that is unless, you're using PayPal Express Checkout. With Express Checkout, HikaShop creates the order after the payment based on the data provided by PayPal. So it's totally possible that PayPal charges things differently, and HikaShop just reflects that. But again, this depends on how you configured your PayPal merchant account. Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[daylily](/forum/user/36343-daylily "View daylily's Profile")** - [![daylily's Avatar](https://www.hikashop.com/media/kunena/core/svg/person.svg)](/forum/user/36343-daylily "View daylily's Profile") Topic Author - [ Offline](/forum/user/36343-daylily) Less More - Posts: 16 - Thank you received: 1 - - 10 years 6 months ago [\#235671](#235671) by [daylily](/forum/user/36343-daylily "View daylily's Profile") Replied by *[daylily](/forum/user/36343-daylily "View daylily's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235671 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* I left out the fact that it is when visitors use PayPal express that this occurs. It is when they use the PayPal button in the cart, so they have not entered any address info in Hikashop. So Hikashop must be getting the address info from PayPal (when it collects CC info). I think that is why the State field is abbreviated. My question right now is could that abbreviated form of the State field impact how the tax, or the VAT is figured? Also what config settings should I use if we don't ever deal with any VAT since we only do business in the US? Could you tell me where the "+$0.66 of VAT" line on the order breakdown comes from? If I click on the edit icon for the line item, it is listed as VAT and shows the tax category as well, which again is the State tax even though they are not in the correct State.. Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[daylily](/forum/user/36343-daylily "View daylily's Profile")** - [![daylily's Avatar](https://www.hikashop.com/media/kunena/core/svg/person.svg)](/forum/user/36343-daylily "View daylily's Profile") Topic Author - [ Offline](/forum/user/36343-daylily) Less More - Posts: 16 - Thank you received: 1 - - 10 years 6 months ago [\#235698](#235698) by [daylily](/forum/user/36343-daylily "View daylily's Profile") Replied by *[daylily](/forum/user/36343-daylily "View daylily's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235698 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* Here's another discovery. If I add something to the cart and checkout, on the initial screen, before any addresses are entered, the cart shows state tax being charged (as if it's by default). If the PayPal button is clicked (PayPal Express), an order is created and I'm taken to the PayPal site to login or pay by credit card. At this point, there are no addresses in the order. I'm assuming that the address is collected by PayPal and returned to Hikashop so that tax and shipping can be determined. After I enter my credit card info I am returned to the site and the order is completed. I entered a different shipping address in PayPal, and it was recorded as both the billing and shipping address in Hikashop! The tax was still charged, even though the addresses are in a different state. Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[nicolas](/forum/user/63-nicolas "View nicolas's Profile")** - [![nicolas's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar63.png)](/forum/user/63-nicolas "View nicolas's Profile") - [ Away](/forum/user/63-nicolas) Less More - Posts: 86290 - Thank you received: 14268 - - 10 years 6 months ago [\#235701](#235701) by [nicolas](/forum/user/63-nicolas "View nicolas's Profile") Replied by *[nicolas](/forum/user/63-nicolas "View nicolas's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235701 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* Hi, So from what I understand here is what I suppose: - you have configured your taxes to apply by default on the prices on your website. - you might be configuring the display settings of the prices to be "without taxes" so that you might only see the prices without taxes in the listings/product pages/cart. - hikashop creates the order before redirecting to PayPal with the price without taxes and the tax amount - PayPal charges with price with the taxes as HikaShop tells it to, even though the customer enter his address in a state without taxes on PayPal - HikaShop updates the address of the order with the address coming from the payment notification. So the issue lies in the fact that taxes are applied to prices by default on your website. To avoid that, you need to set the "main tax zone" setting of the HikaShop configuration to a zone which is not taxed. Then, the orders will be created with the prices without tax and PayPal won't charge the taxes. Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[daylily](/forum/user/36343-daylily "View daylily's Profile")** - [![daylily's Avatar](https://www.hikashop.com/media/kunena/core/svg/person.svg)](/forum/user/36343-daylily "View daylily's Profile") Topic Author - [ Offline](/forum/user/36343-daylily) Less More - Posts: 16 - Thank you received: 1 - - 10 years 6 months ago [\#235763](#235763) by [daylily](/forum/user/36343-daylily "View daylily's Profile") Replied by *[daylily](/forum/user/36343-daylily "View daylily's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235763 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* OK. It's getting better. I followed your directions and have most of the problems resolved. However, when the state tax is applied, there is a blank line with a no label and a price of 0.00. Maybe because I have two default tax categories, one for the state tax (6%0 and one for the zero tax that is the default in the main tax zone? Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[daylily](/forum/user/36343-daylily "View daylily's Profile")** - [![daylily's Avatar](https://www.hikashop.com/media/kunena/core/svg/person.svg)](/forum/user/36343-daylily "View daylily's Profile") Topic Author - [ Offline](/forum/user/36343-daylily) Less More - Posts: 16 - Thank you received: 1 - - 10 years 6 months ago [\#235764](#235764) by [daylily](/forum/user/36343-daylily "View daylily's Profile") Replied by *[daylily](/forum/user/36343-daylily "View daylily's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235764 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* I'm also having some strange behavior still with PayPal express checkout. I have the button active in the cart and everything works fine if the visitor has not entered their address. But if they have entered an address and saved it, when they click on the Paypal Express button, they never get redirected to PayPal, instead they are redirected to this url: index.php?option=com_hikashop&ctrl=checkout&task=notify&notif_payment=paypalexpress&tmpl=component&setExpressCheckout=1 which generates a "requested page cannot be found" error with the explanation: Invalid address. It is probable something I have done, but could you lead me in a good direction to troubleshoot? Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[nicolas](/forum/user/63-nicolas "View nicolas's Profile")** - [![nicolas's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar63.png)](/forum/user/63-nicolas "View nicolas's Profile") - [ Away](/forum/user/63-nicolas) Less More - Posts: 86290 - Thank you received: 14268 - - 10 years 6 months ago [\#235792](#235792) by [nicolas](/forum/user/63-nicolas "View nicolas's Profile") Replied by *[nicolas](/forum/user/63-nicolas "View nicolas's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235792 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* You actually don't need a tax rule for 0%. So you can just remove it. If no tax rule is found for a zone, no tax will be applied. Are you sure that you're still using Joomla 3.4.8 ? The "Invalid address" error has been reported with Joomla 3.5.1 and we provided a patch for that 2 days ago: [ www.hikashop.com/forum/checkout/883603-4...-process.html#235445](https://www.hikashop.com/forum/checkout/883603-404-error-on-step-3-of-checkout-process.html#235445) Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[daylily](/forum/user/36343-daylily "View daylily's Profile")** - [![daylily's Avatar](https://www.hikashop.com/media/kunena/core/svg/person.svg)](/forum/user/36343-daylily "View daylily's Profile") Topic Author - [ Offline](/forum/user/36343-daylily) Less More - Posts: 16 - Thank you received: 1 - - 10 years 6 months ago [\#235894](#235894) by [daylily](/forum/user/36343-daylily "View daylily's Profile") Replied by *[daylily](/forum/user/36343-daylily "View daylily's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235894 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* Thanks. It turns out that autoupdate was enabled on the host. I didn't even know such a thing existed ... what a bad idea! I do have 3.5.1 now and that explains allot. I'll apply the patch. In terms of having the extra tax rule: I can't seem to empty the "main tax zone" field in the tax config. That is why I created the 0% rule. So how can I accomplish this without it? Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[nicolas](/forum/user/63-nicolas "View nicolas's Profile")** - [![nicolas's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar63.png)](/forum/user/63-nicolas "View nicolas's Profile") - [ Away](/forum/user/63-nicolas) Less More - Posts: 86290 - Thank you received: 14268 - - 10 years 6 months ago [\#235899](#235899) by [nicolas](/forum/user/63-nicolas "View nicolas's Profile") Replied by *[nicolas](/forum/user/63-nicolas "View nicolas's Profile")* on topic *[When customers use paypal they are charged tax](/forum/40-taxes/883633-when-customers-use-paypal-they-are-charged-tax#235899 "-- HikaShop version -- : 2.4 -- Joomla version -- : 3.4.8 -- PHP version -- : 5.3.29 -- Browser(s) name and version -- : Chrome latest After lots of testing I have discovered that PayPal users who use a credit card (not users who pay using their PayPal account) are being charged tax, regardless of where they live. We have only one tax zone which is the state we are doing business. When customers checkout without using PayPal, and when they checkout using their PayPal account, everything works as it should. If they live in our state they are charged tax accordingly, if they don't, no tax is charged. But when they click the PayPal checkout and then opt to pay using a credit card, they are charged the 6% tax no matter where they live. Here are a couple of clues. These customers have an abbreviated State field on their order. All others are spelled out. So it seems that the address info coming back from PayPal is different or is processed differently, which then cause the tax lookup to charge tax when it shouldn't. The other odd thing is that on the order page (admin), each product shows the tax that was charges as "+$0.66 of VAT" below the product charge. I have tried to figure out where I am going wrong, but I can't find any solution.")* Hi, Simply configure a zone that is not taxed. For example, select the "France" country zone in there and taxes won't apply by default since I suppose that your tax rules don't apply to France right ? Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzQwLXRheGVzLzg4MzYzMy13aGVuLWN1c3RvbWVycy11c2UtcGF5cGFsLXRoZXktYXJlLWNoYXJnZWQtdGF4P3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. 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