Paypal Limits question

[dog_fashion_disco]

Hi guys, i recently received a transfer to my paypal account that exceeds €2500. I didnt know that €2500 was the limit to my account, now paypal is asking me for all kinds of info, to lift the limitations of my account. Now i cant do anything with the money!
Has this ever happened to anyone?

Thanks!

 

[robbiethepainter]

Yes.

When there is that much money being transferred at once or over several exchanges, they want to confirm your identity.

In regards to those of us in the United States, after 200 transactions or $20,000 they will submit inform the Internal Revenue Service for taxation.

 

[dog_fashion_disco]

Thanks for your reply robbiethepainter! I just want to know if after i give them my personal info, there are going to be any tax implications.

 

[karamazov80]

I upgraded to a "business" account years ago, and haven't had them ask me for any additional information since then. But I've never received that much money at once, either. My guess is similar to Robbie, that they just want to make sure everything is legit.

Yes.

When there is that much money being transferred at once or over several exchanges, they want to confirm your identity.

In regards to those of us in the United States, after 200 transactions or $20,000 they will submit inform the Internal Revenue Service for taxation.

I believe you need both over $20K in transactions and over 200 transactions for Paypal to report your information to the IRS.

 

[67L88Stingray]

Thanks for your reply robbiethepainter! I just want to know if after i give them my personal info, there are going to be any tax implications.

Only if you go over those limits. It is 200 payments AND $20K, so you have to go over both of those, not just one.

 

[dog_fashion_disco]

Thanks a lot guys! I was starting to worry!

 

[robbiethepainter]

I stand corrected.

"Internal Revenue Code (IRC) Section 6050W states that all US payment processors, including PayPal, are required by the Internal Revenue Service (IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year. In order to help you understand these changes, we have prepared the following FAQs."

 

[dog_fashion_disco]

I just hope that the same rule applies here in the EU

 

[robbiethepainter]

go to their website. It should have all the info you need.

 

[karamazov80]

The way you get taxed in Europe, I'm surprised they don't send in a Paypal report regardless of how much money was made.

 

[dog_fashion_disco]

The way you get taxed in Europe, I'm surprised they don't send in a Paypal report regardless of how much money was made.

lol, true!!

 

[Pixelpiper]

Always receive a WIRE TRANSFER for large amounts. I can't imagine a wire transfer costing more anywhere in the world than PayPal's fee. And if you're going to use PayPal for business, make sure you have a business account, in my experience (8 years now) it's much less hassle. US tax code and regulations, especially with respect to PayPal, are also quite different and have little to no bearing on how it works in other countries. The differences alone between US and Canada are significant and we're right next to each other.