eBay

hp2go · ‎09-23-2019

I recently bought two items from Ebay and since both sellers do not ship to Canada (where I live) I chose to have it shipped to a UPS store in Niagara Fall NY so I can go pick it up there. I then bring it into Canada and pay taxes and import fees if any. Well, I was surprised to find out that since I had chosen to have the items shipped to NY state, I was slapped with $120 USD in taxes on these two items, and in addition, I will have to pay taxes again when I bring these items into Canada. The $120 is a NY tax and it applies to all items shipped to NY no matter whether you are a resident of NY or not (which I am not obviously). So, this seems unfair to me, so either eBay is not set up to limit these to NY residents only, or it truly is just NY state tax that they charge on anything shipped to that state, which seems ridiculous. Anyone have any thoughts? BTW, both items were used. I know I wont be buying and shipping there any more, that is for sure!

reallynicestamps · ‎09-23-2019

The $120 is a NY tax and it applies to all items shipped to NY no matter whether you are a resident of NY or not

If you were buying in a B&M store in NYstate , you would be charged NY sales tax.

Same deal for online purchases now.

And of course, this stands for all online sites not just eBay.

and in addition, I will have to pay taxes again when I bring these items into Canada.

Yup.

Any import valued over $20Cdn (U$15) will be assessed for duty and will certainly be charged Sales Taxes.

To some extent, the online sales taxes are a protection for B&M stores in the state, which provide employment and property taxes to the state government in addition to the sales taxes.

BTW, both items were used.

Used items are taxable. VIS-- cars.

Some charities are excused from charging sales taxes in their thrift stores, but most people are buying used goods privately from people who are not registered to remit taxes.

Huh- I just remembered the first time I ever paid a sales tax. I was about eight years old in the mid-50s and bought a wax stegosaurus for $1.00 US during a visit to Buffalo and then didn't have enough for the sales tax. My dad paid it though and I had the dinosaur until it melted in the sunshine coming through my bedroom window.

ichopshop · ‎09-24-2019

Just to rub salt in the wound, the $120 NY tax is part of the cost of the items you purchased and import duties/taxes will apply to the total including NY tax. Shipping on the other hand should be excluded from the dutiable/taxable amount as long as it was a separate charge.

But yes, everything you described is perfectly normal.

Ian

dagobahgeneralstore · ‎09-25-2019

Don't claim it at the border

retroman_studios · ‎09-26-2019

This is NOT good advise.

CBSA does not take kindly to those that try and hide items and if you are caught you most likely will get a fine in addition to a duty/tax charge. In more rare cases they may decide to search the vehicle.

Take this as a lesson and move forward. Perhaps there is some way you can claim that tax on your income tax at the end of the year if it's something for legitimate business use?

reallynicestamps · ‎09-26-2019

Yes, if the OP is registered to collect GST/PST/HST he can use those US taxes and the Canadian ones as costs.

a52split · ‎09-27-2019

@retroman_studios wrote:
In more rare cases they may decide to search the vehicle.

If they catch you in a lie, I guarantee they will search your car.

a52split · ‎09-27-2019

I was at an event in Seattle recently where I ran into a friend from there who happens to be a seller on ebay too. Knowing I'm in Canada, he brought up this very topic and said that he had seen something from ebay where you could declare you didn't live in that border state that they collect tax for, and that the items are all exported from that state, then they wouldn't collect the tax.

I tried to search for info on this but found nothing. I haven't been able to contact my friend either.

I've definitely reduced my buying on ebay now that everything is 8.5-8.7% more. Are you listening, ebay? Tyler?

ypdc_dennis · ‎09-27-2019

@a52split wrote:
... he had seen something from ebay where you could declare you didn't live in that border state that they collect tax for, and that the items are all exported from that state, then they wouldn't collect the tax.

Sales tax exemption rules vary depending on the destination State.

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section2

Washington State (as an example):

https://dor.wa.gov/find-taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/mar...