I am using the Paypal HTML API for a website. Paypal seems to be ignoring the tax field, for recurring payments.
Is this a bug? (I know it was a while back). Has anyone managed to add tax calculations to Paypal recurring payments?
It's not supported.
See Paypal HTML integration problems (sales tax not showing for recurring payment) -- it's an old question (that's incidentally displayed in the list to the right of your question; please search before asking!) but has a comment from less than a month ago that is still relevant.
It in turn links to an official thread that's years old, updated just a few months ago with:
I apologize for the misguided information that you received previously through phone support. Feature requests have been submitted up on this to see if this is something that can be added into a future release. However, I do not know if this will be something that is updated nor when this will be available. The only work around at this time, is to include all tax and shipping charges into the subscription amount.
Today I had a two hours call with Paypal reps - they themselves were surprised to find our that it doesn't add the VAT to recurring payments, and indeed it doesn't.
The reason, most probably is that the VAT % can be changed over the period of the subscription, and once the user committed to pay certain amount, they can't change it over time. Very silly - but still - they don't have that option. May be due to legal reasons.