Canadian Taxes

dishkbron
Community Member
I was wondering if some of the Canadian Power Sellers could share their practices on how to charge Canadian taxes and how is this accepted by Canadian customers

I'm using SApro right now, is there a way to get the checkout to calculate the taxes? Is eBay even thinking about making this change to support Power Sellers?

Thanks in Advance and Happy 2004 !
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Canadian Taxes

mahsauction
Community Member
I'm assuming you are talking about GST/HST. I'm in Alberta so that is all I need to charge. I've only had a few complain saying that I can't be a legitimate business but the stop when I email them my GST number. I have one now that paid with MO, no GST included. I've emailed them twice with the GST amount, once with the Winning Bidder Notification and once after I received their MO. I haven't heard back. Don't know what they expect, a 7% discount on their items?

I've seen one DVD seller include the GST amount in their s/h fees. That is a possibility but your s/h costs would be higher for Canadians versus Americans and you would have some complaints from that I'm sure.

All of my Canadian winning bidder notifications are manually modified to include the sales tax. I don't use SAPro, I just use Selling Manager. Paypal has some allowances for GST calculations but it doesn't work 100% of the time. If the buyer uses the Send Money tab it doesn't add GST. Also if the buyer is from the HST zone, I have to refund and ask for more money. Not ideal at all.

Auctionworks seems to be the only management system I've found to take care of the sales tax for Canadians. The only problem is getting people to go through Auctionworks checkout.

Anyhow, no good solutions here, just my headaches. Pass the asprin please.
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Canadian Taxes

ospreylinks
Community Member
We post in the description of our auctions a section on sales taxes and how they apply to the various jurisdictions. Click on our auctions above to see how our description looks.

Collecting taxes in the automated check-outs is difficult. Some times people just automatically calculate the taxes due (9 times out of 10 if they do this they forget to calculate taxes on shipping as it is GST taxable), but most just pay for the goods and shipping if fixed amount is quoted. Then we send them a polite email indicating that the description of the goods specified taxes were payable and apologize that automatic check-outs do not allow for easy collection of taxes and follow this up with a request for money via Paypal to collect the outstanding amount. Everyone always pays with no problem, after all we clearly spell it out and we already have their money except for the taxes due, so if they want their item, it is in their interest to pay the tax balance outstanding.

Auctions that don't have fixed shipping are easier, because the winning bidder has to wait for the freight amount to be invoiced, and then we also include and explain sales taxes as applicable with the invoice.

Jeff
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Canadian Taxes

your-chic-shopper
Community Member
paypal lets you add GST
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Canadian Taxes

muminlaw
Community Member
I use Auction Wizard 2000 and it has let me set up 4 different tax profiles to cover the different situations - no tax, GST, GST & PST, and HST. I have to choose which profile my customer fits into, but the program will calculate the taxes from there (no tax is the default). It will also remember repeat taxable customers, but not always the correct level so I do have to remember to correct that setting.

My biggest problem tax-wise is the people who have their spam filters set on high so they don't get my EOA notices -- when they try to go through eBay's checkout, they often try to weasel out of taxes! I've only had one who was quite indignant that I would dare try to charge GST but, as mahsauction observed, all it takes is an email quoting your GST reg. number. In fact, I've added the number to my EOA template for Cdn buyers - no more arguments ...{{{looking around for wood to touch!!}}}

Glenda

Glenda

Click here to go to my Store
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Canadian Taxes

www-labels4less-com
Community Member
Out of 2000 shipments last year I probably sent 15-20 in Canada. When I have a Canadian order, I absorb the taxes, adjust the selling price and show the taxes on the tax portion of the invoice. Sure I'm entitled to charge the tax (and show it in my TOS) however I feel that it is better not to advertise the fact that I'm in Canada.


SOOO many customers of mine say "oh i didn't realize you were in canada" when they get my notifications. I feel that if I made a song and dance about Canadian taxes in my auctions that I would lose potential U.S. customers who may feel it is better for them to order from within the U.S.
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Canadian Taxes

mirakbiz_inc
Community Member
your-chic-shopper , how do you set paypal to do that? (add GST)

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Canadian Taxes

mahsauction
Community Member
Sign on to Paypal, go to your profile. Inside there is a link on the right column about regional sales tax.
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