1. What happens if we're registered to collect PST in some provinces? The authorization forms you sent out don't make mention of provincial taxes (aside from QST). Do we need a special authorization form for other provinces as well, or do those provinces not require the forms?
For the PST statutes in British Columbia, Manitoba and Saskatchewan, the legislation makes the platform operator responsible to collect taxes without any election, even for registered vendors. The election form provided is for GST/HST and QST-registered vendors only. Since the platform operator is responsible to collect taxes without any election for PST statutes, there’s nothing specific to sign in connection with the PST registrations.
2. How do the monthly reports we receive break taxes down? Do they do it on an item-by-item basis, or just give the totals? Do they break down the amount from each province? How will that work? (it would help to know this so we know how our bookkeeping should be set up)
The e-Bay collected taxes are shown on an item by item basis and break down the tax at the Federal and Provincial level. Note that eBay is responsible for collection and remittance of the tax and will be remitting the tax under their registration numbers to the appropriate taxing authorities.
3. Assuming tax is collected based on the category an item is listed in (does it?), what happens if an item is listed in two categories, one of which requires a federal component only and one that requires both?
eBay is responsible for the application and collection of the tax. Any errors related to the collection of the tax will be eBay’s responsibility to remedy – and refund to the purchaser or remit to the appropriate taxing authorities, as applicable.
4. What happens if an item is listed in a wrong category (or a category has both partially exempt and fully taxable items reguarly listed in it) and the tax is undercollected? Is the seller responsible, does eBay handle this, or do the new taxation laws provide protection for this? If the seller is responsible, what is the process in detecting and correcting the mistake, especially if the monthly reports don't break things down on an item-by-item basis?
eBay is responsible for the application and collection of the tax. Any errors related to the collection of the tax will be eBay’s responsibility to remedy – and refund to the purchaser or remit to the appropriate taxing authorities, as applicable. Beginning July 1, 2022 eBay is responsible for the collection and remittance of the tax and sellers should not have any responsibility for any errors in the application and/or collection of the tax.
5. I believe the tax forms indicated that eBay and the seller are JOINTLY responsible for the correct tax collection and any mistakes that are made. Is anything in the policies being changed to ensure that if eBay makes a mistake on their end, it won't all be shovelled at the seller?
eBay is responsible for the application and collection of the tax. Any errors related to the collection of the tax will be eBay’s responsibility to remedy – and refund to the purchaser or remit to the appropriate taxing authorities, as applicable. Beginning July 1, 2022 eBay is responsible for the collection and remittance of the tax and sellers should not have any responsibility for any errors in the application and/or collection of the tax. The taxing authorities will recognize eBay as the responsible party.
6. With tax tables going away, what happens with international sales to (say) Europe? Is eBay going to also be collecting and remitting the correct taxes for Europe (I THINK this is an issue for businesses only, but I'm not positive).
eBay is currently responsible for the collection of VAT on certain thresholds of transactions shipped to buyers in Europe and UK. As of 1 January 2021, eBay is required to collect VAT on certain orders delivered to UK addresses for orders up to £135 sent from outside the UK and for orders where the item is located in the UK, but the seller is not registered for UK VAT. On orders over £135 imported to the UK, the recipient may need to pay VAT as part of clearing the parcel through customs.
7. Will eBay be providing proper tax receipts to buyers (since this is a requirement if the sales amount is over a certain amount)? Will a proper receipt be automatically provided to buyers when required, or will we have to print it out and include it in the package?
No additional documentation will need to be provided by sellers to buyers for transactions. Sellers can work directly with eBay on any additional documentation they may require.
8. What happens if we cross a tax threshhold for sales to a province (say $31,000 in sales to Quebec)? Do these new marketplace rules mean we would not be required to get a provincial tax number from them, or would be be required to get one but file $0 returns?
Please consult with your tax advisor on your individual and business registration and tax filing requirements.
