eBay not remitting tax collected to Canada - Canada Revenue Agency response pending

[questcomicsncollectibles]

I have tried for 4 months to work with eBay so that the tax they collect from buyers in Canada is remitted on time and to the appropriate government jurisdiction.  In my numerous conversations with eBay support they (1st & 2nd level support) have no idea how to process the tax dollars that they have collected from Canadian buyers.  No person at any level of eBay support has been able to answer the simple question what happens with the tax money collected?

It becomes a problem for me as I need to remit GST/HST/QST/PST every quarter, however I do not collect any of the tax money - eBay is collecting that money.  The money is now due, but no one at eBay is able to identify how I can access the tax money so I can pay the appropriate government jurisdicitons.  Alternatively I would gladly proivide eBay with the tax amount each jurisdiction is owed and they can pay those institutions.  eBay support is sympathetic but they are completely lost and have no idea at all how to handle retail sales tax in Canada. 

As a result I have contacted CRA and have advised the agency of my situation.   CRA has opened a case and will provide a ruling shortly.  The ruling will indicate if I am still responible to pay the taxes when I did not collect the taxes.  I will update the post with the results from my conversation with CRA.

If the ruling does not go in my favour,  I will need to take money out of my personal account to ensure that the taxes are paid on time and to the correct jurisdictions.  This will also mean that my final value fees for selling in Canada is around 24% (12.35% from eBay + 12% average of tax rate in Canada).  I do not have the margins to cover 24% selling fees.

For now I am going to cancel all of my current listings.  I am thinking that the only way I can continue to use eBay is to remove the tax charges and just increase the retail price by 12%(average tax rate).  This way I can pay the tax on my own.  It would be great if any other Canadian sellers can advise how they got around this issue with eBay.

Thanks

[kawartha-ephemera]

I'm sorry to be the bearer of bad news ... eBay most definitely does not collect GST/HST on behalf of their sellers. When required, at the seller's direction eBay may add a GST/HST line to buyers invoices but those funds are NOT held by eBay. The funds are lumped together with everything else and paid out to the seller directly.

[pjcdn2005]

As the other poster said ebay has never collected sales tax from Canadian buyers.  They do collect it from buyers in specific states, the UK, EU and Australia but not from Canada.  Since your listings are set up to collect tax you would have received the tax in your payouts and then it would be up to you to submit the tax you collected.

Why do you think eBay has collected it for you?  

[ypdc_dennis]

---

@questcomicsncollectibles wrote:

I have tried for 4 months to work with eBay so that the tax they collect from buyers in Canada is remitted on time and to the appropriate government jurisdiction.  ...  No person at any level of eBay support has been able to answer the simple question what happens with the tax money collected?

---

eBay collects the tax based on what you have set up for your Canadian sales AND gives that money to you as part of your payout.  You handle the paperwork and do your own remitting.

That might change in the future, but that is the way it works right now.

https://www.ebay.ca/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

tyler@ebay  -- ebay support should be providing better information to Canadian sellers

-;-

[cumos55 · Accepted solution]

The only tax that eBay collects is the GST/HST charged on the fees..... Final Value Fees plus Store Subscription Fee.....  that a seller is charged.  

eBay collects this tax and sends it to the Canada Revenue Agency.

This tax that eBay collects becomes an Input Tax Credit for all sellers that are registered to collect GST/HST