Can I use HST Charged by EBay to me as an ITC on personal items I am selling

I am in the process (and have been for two years ) of selling personal stuff I have collected over the years on eBay. I understand that I do not have to charge HST on personal items (I sell maybe 5000.00 a year so far).
I also understand that eBay is going to start charging me HST on fees and the premium store account I subscribed to a year ago.
1) Can I apply for an HST number and just claim an HST refund I have been forced to pay eBay on my plan and on fees for items sold (or alternatively apply for an HST exemption from ebay)
OR
2) EBay can include the HST in the plan I signed up for (because they quoted me a monthly fee and they should honour it without adding HST to it) . This obviously doesn't solve the HST I will be charged on fees etcetera but I will just have to eat that (as usual)

It's already very hard to sell items at a profit with the competition and our astronomical postage/shipping rates.

I often wonder why I even waste my time trying to sell this stuff until I look at the space it takes up......

HST in the current competitive market.....Canadians don't have a flipping chance of making money. I am practically giving stuff away as it is!!!!
Thanks
Hope to hear from you soon
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Can I use HST Charged by EBay to me as an ITC on personal items I am selling

This will be (depending where in Canada you are) an extra expense of 0.5 to 1.5% of the sale price for sellers who are not GST/HST registered, don't have a store, and don't have TRS status.

 

Those who are already GST/HST registered will see no change (just some extra bookkeeping for the ITC).

 

If you register for GST/HST you collect tax on all your sales inside Canada.

 

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Can I use HST Charged by EBay to me as an ITC on personal items I am selling

revaud
Community Member

You can claim it as an ITC as long as you claim all your sales as income. You will need to apply for a business number .

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Can I use HST Charged by EBay to me as an ITC on personal items I am selling

Thanks all.
I believe I will just eat the cost and move on.
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Can I use HST Charged by EBay to me as an ITC on personal items I am selling

ucollecthem - " Can I apply for an HST number and just claim an HST refund I have been forced to pay eBay on my plan and on fees for items sold (or alternatively apply for an HST exemption from ebay)"

 

Once you apply and received your GST/HST registration, you are liable to remit GST and/or HST on all your taxable sales within Canada. You will also be allowed to claim ITCs for all GST/HST paid on your purchases made for resale and business related expenses such as postage, shipping supplies, fees, etc...

 

On the other hand if you do not conduct a business of any kind - selling a few thousand dollars worth of personal used "stuff" is not a business - then you do not need to register with GST/HST

 

" EBay can include the HST in the plan I signed up for (because they quoted me a monthly fee and they should honour it without adding HST to it) . This obviously doesn't solve the HST I will be charged on fees etcetera but I will just have to eat that (as usual)"

 

eBay will start collecting tax on fees on behalf of the government as of July 1st, 2017.  They have no control on taxes charged by the government and it is certainly not a breach of contract on their part.  Taxes are an unfortunate fact of life for all of us.

 

"It's already very hard to sell items at a profit with the competition and our astronomical postage/shipping rates."... "Canadians don't have a flipping chance of making money."

 

That message is very confusing.  If you are selling a few thousand dollars worth of personal "stuff", you are not making a profit.  If you purchase "stuff" for resale, then you are in business and must declare all net profits on your annual income tax return (line 135).  You can't have it both ways.  You are or are not a business.  Looking at your recently sold listings I find many Canadian stamps sold at prices well above original face value. CRA may see that as a "business and tax you accordingly if ever audited.

 

"HST in the current competitive market.....Canadians don't have a flipping chance of making money" 

 

Most of us in business or who had a business make a profit.  Taxation is a way of life we all accept. 

 

Good Luck

 

 

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