Ebay collecting Tax from Canadian buyer from non Canadian seller

Hello everyone,

Can someone tell me since ebay collecting GST/HST from Canadian buyers buying from  non Canada's sellers .

 

I wanted to buy some Items from USA .

 

Each Item has Tax and Import charges  on checkout 

The same apply for ebay shipping OR Global shipping.

 

 

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Answers (6)

Answers (6)

buyers' location determines the amount of tax whether that be Prov. Sales Tax, HST, GST. and it matters not where the seller is located. When Goods are being inported into Canada those goods are subject to any applicable taxes as per their category and value, as per CBSA rules governing such goods:

"Any item mailed to Canada may be subject to the Goods and Services Tax (GST) and/or duty. Unless specifically exempted, you must pay the 5% GST on items you import into Canada by mail. The CBSA calculates any duties owing based on the value of the goods in Canadian funds."

@pansy19 

 

My question is:

 

Why ebay charge Canada Residents HST/GST & Import charges in USD $ on Checkout  for items not listed on Global Shipping, not from Canadian sellers  ?

 

Because you purchased from a US seller listing on the US site in US dollars.

EBay processed the entire transaction in US dollars.

If you purchased from a Belgian seller listing on the Irish site, the transaction would be in euros*.

EBay would process the entire transaction in euros.

 

If you see the item in loonies that is an approximation to allow you to judge whether the transaction is a good deal, since most people work better in their own currency than in that of another nation.

 

It's not unusual for  company which operates internationally to have  sub-contract with the customs bureaus of other nations to handle import fees (duty and sales taxes) before the purchase gets to the border. This saves the taxpayer and the buyer time and money.

 

For imports from the USA with CUSMA (Nafta) the duty free allowance for Canadians is $150 Cdn (~$120USD)  and the tax free allowance is $40.

Most of what you are charged will be Canadian sales taxes.

 

 

 

 

 

 

 

 

*Both are members of the European Union and both nations use euros as their common currency.

marnotom!
Community Member

Imports by individuals in Canada are just as subject to taxes as purchases from Canadian sellers.  The difference is that the Canada Border Services Agency  (or an agent of CBSA) is responsible for collecting on imports, where as the Canada Revenue Agency is responsible for domestic sales.

 

Items sent by mail are assessed by CBSA, although there seems to be some recognition by the Agency that it's not cost-effective to assess low value items, even though there's officially a C$20 tax-free limit for mailed items on the books.  Taxes on mailed items are generally collected by Canada Post at the time delivery is made.

 

Items sent by other means (e.g. couriers) have a C$40 tax-free limit if sent from the US, and the carrier or an agent of the carrier is responsible for seeing that those taxes get paid.  Quite often, the strategy is that the carrier or agent will advance the taxes on the buyer's behalf and the buyer pays the carrier or agent back.  This theoretically helps the item get through the customs process faster.

 

The GSP has been around since 2013 and is poised to die a quiet death this year as eBay International Shipping is replacing it.  There was a lot of hew and cry about the GSP's handling of taxes and duty when it was first unleashed on unsuspecting eBay buyers, as it was quite a different method of handling taxes than buyers were used to with items sent by mail, but it was a imperfectly legitimate way of doing so.  eBay International Shipping seems to be heading in that direction, too, after starting out as service that left the handling of taxes and duty to the Canadian shipper to collect at the time of delivery.

 

Zombie Thread From ‎07-15-2023 10:16 PM

I'm hesitant to shop on eBay now, considering I'm being charged GST/HST as a Canadian consumer, being forced to pay Canadian taxes in a higher currency such as USD. The checkout designers of eBay seriously flawed that one up, if they are required to Collect for the Canadians, than charge it in Canadian dollars. That's upscaling and over shopping. 

Sorry I don't pay Tax to France, Australia  OR  USA Sellers .

 

We pay Tax to Canadien   Sellers  on ebay .

 

I bought Item on ebay.com  from USA seller and charged Tax .

I bought Item from  another seller from USA and I'm not charged Tax .

 

Non of them are  business .

This is why I'm asking .How is possible you pay Tax to some  sellers , you don't to others from the same ground on the same site ?

Thank you