New eBay.ca billing : double paying the taxes on shipping (26% instead of 13%) for Canada

[*playitagain*]

Just got the update on eBay Canada changing their contracting party. As of July 1 "The new contracting entity, eBay Canada Limited, is subject to Canadian tax law. As a result, sales tax (GST/HST/QST) will be charged on eBay fees starting July 1st, 2017. "

As all sellers know .... eBay charges a Final Value Fee on Shipping (FVFS) in addition to the Final Value Sale of an item.

Judging from the content above, this means they will also be charging taxes on the FVFS portion of their fee. IS IT LEGAL to double-tap on taxes? We already pay taxes for shipments INSIDE Canada. On a Federal level, shipping to other countries (exports) are tax exempt.

Is eBay is proposing to tax Canadians on top of tax -- as well as tax us on export that even the Federal government does not tax? For most of us, the amount a customer pays to have their item(s) shipped IS NOT INCOME.

Whatever each province currently pays in taxes when using Canada Post will be doubled. In Ontario, will we be paying an additional 13% on non-income (or 26%) inside Canada, and 13% to exports, where currently, we are not charged taxes according to Law.

Is this legal?

[izzame]

Right on point. I believe this is something to bring up at next Wed. discussion board (1st week back) Or possibly email one of the employees to "research" this point so that they will have an answer next Wed.

[femmefan1946]

pierrelebel , who is a tax accountant by trade, has responded to this question on another thread.

[cyber-collector]

And in Québec it will be 14.75% x 2 = 29.50%...Well they say 14.75 but we already pay 15% in taxes Total...I think it will be time for me to Get the Hell out of eBay for Good. Yes, I will pack my stuff and Run...since they are going nuts...OR WILL WE HAVE TO CHARGE TAXES TO OUR CUSTOMER ON TOP OF IT...ON USED ITEMS... OR COLLECTORS ITEMS, COINS, STAMPS, HOCKEY CARDS TO NAME JUST A FEW...

ADIOS IN JULY eBay...TOO MUCH FOR ME...I'm 67 and don't need this....Its ABUSIVE. IN MY POINT OF VIEW and I've cope enough with all their UPDATES over the last 21 years....NOW ITS TOO MUCH...

GOOD LUCK FOLKS.............................

[femmefan1946]

Before you panic, read the thread that pierrelebel has responded to with facts and professional knowledge.

[Anonymous · Accepted solution]

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@femmefan1946 wrote:

Before you panic, read the thread that pierrelebel has responded to with facts and professional knowledge.

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Here's the thread femmefan1946 was referring to.

We've also started a thread to discuss today's seller release news here. 

[ypdc_dennis]

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@*playitagain* wrote:

Just got the update on eBay Canada changing their contracting party. As of July 1 "The new contracting entity, eBay Canada Limited, is subject to Canadian tax law. As a result, sales tax (GST/HST/QST) will be charged on eBay fees starting July 1st, 2017.

Is this legal?

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I'll leave out commenting on some really bad math.

As to your question: Perfectly legal.

Currently there are no taxes on fees because the billing for fees is done through the eBay company based in Switzerland. Come July the eBay reorganization (which effects more than Canada) will move the billing to eBay Canada. Companies in Canada (unless exempt) must collect taxes on their Canadian fees.

If you currently pay 10% in eBay fees, with tax it will be 10.5% to 11.5% depending where you live in Canada.

Other threads:

http://community.ebay.ca/t5/Seller-Central/Canadian-sellers-to-be-charged-GST-HST-QST-on-all-fees-ef...

http://community.ebay.ca/t5/Seller-Updates/2017-Summer-Seller-Update-community-discussion-thread/m-p...

[tyler@ebay]

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@Anonymous wrote:

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@femmefan1946 wrote:

Before you panic, read the thread that pierrelebel has responded to with facts and professional knowledge.

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Here's the thread femmefan1946 was referring to.

We've also started a thread to discuss today's seller release news here. 

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Hey all -

To consolidate conversations into a more manageable area I've blocked replies on this thread. If you have further questions or concerns please raise them on the threads Russ mentions. Thanks!