Buyers double-taxed if they buy out of the U.S. and have it re-routed to Canada

If you buy something off Ebay and the seller won't ship to Canada, you can have it shipped to an intermediary in the U.S. (a company) who will then ship it to you at your Canadian destination.   The problem is, Ebay will charge you the tax of the STATE you are having it shipped to, then once it is shipped out by the itermediary company, you will then pay the Canadian tax once it reaches you.  So for example, you buy something out of Florida, have it shipped to California to the intermediary, you pay the California sales tax for  the value of the item.  So instead of say 13% Canadian tax, you'll pay 8% (U.S. state tax) then 13% once it gets to Canada.

Message 1 of 7
latest reply
6 REPLIES 6

Buyers double-taxed if they buy out of the U.S. and have it re-routed to Canada

marnotom!
Community Member

Yup. That’s unfortunately how “internet tax” works, and there doesn’t appear to be any way around it. Tax is based on the item’s US destination, not the end-user’s location.  This isn't an eBay-only thang.

Message 2 of 7
latest reply

Buyers double-taxed if they buy out of the U.S. and have it re-routed to Canada

About five states have no state sales tax. A couple are Delaware and Idaho. Both have companies specializing in forwarding purchases out of country. They will consolidate purchases into a larger package to save on shipping costs.
Message 3 of 7
latest reply

Buyers double-taxed if they buy out of the U.S. and have it re-routed to Canada

The companies that do this are called Freight Forwarders.

They will often also handle Canadian import fees for their customers and because they can ship to Canada in bulk (your purchase is bundled with many others to cross the border, then moves to a Canadian shipper) their shipping fees may be lower than you would pay when the shipping is direct from the seller to you. Or not.

 

If you were cross-border shopping, depending on the timing, you would pay US sales tax at the cash register, and may also pay Canadian duty and sales taxes when you declare your purchases on the way home.

Message 4 of 7
latest reply

Buyers double-taxed if they buy out of the U.S. and have it re-routed to Canada

I mentioned Idaho but it is Oregon that doesn’t have state sales tax. The other three are Montana, New Hampshirite and Alaska.
Message 5 of 7
latest reply

Buyers double-taxed if they buy out of the U.S. and have it re-routed to Canada

There is an alt-right movement in Oregon to join with Idaho. The inland parts of OR are quite different politically from the coast.
The separatistes don't seem to realize that if they succeed they will be paying state sales taxes.

Hehehe

 

Message 6 of 7
latest reply

Buyers double-taxed if they buy out of the U.S. and have it re-routed to Canada

I use Planet Express. I have 3 addresses through them, one in Oregon, one in California, and one in London England. They provide free storage for 45 days, and will consolidate your items. Oregon has no sales tax. They will also remove any paperwork, and if you wish either dispose of the invoices, or mail them seperatly to you, for an extra fee. You fill out your own customs declaration, online. So far, so good. It's expensive, but at least they are fast, and less expensive than the GSP.

 

I find that since I stopped selling on eBay, due to all the new BS, I buy there much less. When I do though, it's so much faster, and less expensive than using the GSP, and no begging sellers not to ship using the GSP. 

Message 7 of 7
latest reply