Canadian seller GST/PST question

[collectabuzz]

Hi All,

Wondering if someone can help me understand the GST/PST charged on sales. I am based in Quebec, Canada and my GST/PST is 14.975%. I don't have a store and am not incorporated. I just sold an item for $115. On the ebay invoice the buyer was charged Sales price: $115, Sales tax: $20.66 and shipping fee: $23.00. I am confused as to why ebay charged the buyer 14.975% on the sales price. And also what will I be charged on my monthly invoice, an amount based on just the 10% fees for final value and shipping or will I in turn be charged on the full sales price plus shipping?

Any help will be appreciated,

Thanks,

Carol

[ypdc_dennis · Accepted solution]

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@collectabuzz wrote:

Wondering if someone can help me understand the GST/PST charged on sales. I am based in Quebec, Canada and my GST/PST is 14.975%. I don't have a store and am not incorporated. I just sold an item for $115. On the ebay invoice the buyer was charged Sales price: $115, Sales tax: $20.66 and shipping fee: $23.00. I am confused as to why ebay charged the buyer 14.975% on the sales price.

And also what will I be charged on my monthly invoice, an amount based on just the 10% fees for final value and shipping or will I in turn be charged on the full sales price plus shipping?

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Are you registered to collect GST/HST and/or QST ?

eBay should only be charging the buyer those taxes (on cost+shipping) if the seller (in this case) you, is registered. I assume the buyer is in Quebec.

If you are NOT registered then check your settings and refund that tax amount back to the buyer.

If you ARE registered, then the tax money will go to you and you will have to include the amount in your GST/HST and QST reports.

...

eBay fees are not assessed on collected tax.  FVF on sales amount plus FVF on shipping. Your taxes are added to the fees displayed. So (115.00 x 10%) + 14.975% = $13.22

The taxes showing on your eBay monthly invoice are deductible if you are GST/HST and/or QST registered.

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[collectabuzz]

Thank you for your reply, Dennis. I am not registered so I thought it was odd. So just to be clear, when I list items I do not use the drop down menu regarding province/tax rate, I leave that blank? I will refund buyer as well. Also I should see $13.22 on the buyers invoice correct? ((115.00 x 10%) + 14.975% = $13.22).

Thank you for your help, much appreciated!!

[ypdc_dennis]

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@collectabuzz wrote:

... I am not registered so I thought it was odd. So just to be clear, when I list items I do not use the drop down menu regarding province/tax rate, I leave that blank? I will refund buyer as well. Also I should see $13.22 on the buyers invoice correct? ((115.00 x 10%) + 14.975% = $13.22).

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If not registered to collect tax -- then you leave the tax rates blank/disabled. If your sales become more than $30 thousand for a 12 month period, then GST/HST registration is required.

The $13.22 is your Final-Value-Fee on the sale and will not be on the buyers invoice.

To see the FVF look in your My eBay >> Account >> Account Summary >> Fees

And it will also be on your monthly eBay invoice.

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[cumos55]

That $30 ,000 is for the total of sales worldwide plus shipping. worldwide.

Many people forget to state this as the total which is a requirement for registering and collecting GST/HST

For people in Quebec  it is QST... and do check because the Quebec situation is unique compared to the provinces and territories of Canada

[vintageeyecandyads]

TY!!

[vintageeyecandyads]

Ty Dennis!

[vintageeyecandyads]

and cumos55!!

[of-the-world]

Keep it simple.

Don't worry about this $30,000 'breaking point' people keep harping about.

The key to GST or other sales taxes, is  to apply them ONLY WHERE NECESSARY.

Anything you bought off a rack in a thrift store, was given 2nd  hand, found in an alley, were gifted,

in other words, something that has already been bought and paid for ONCE with the applied sales tax..

you keep that INFORMATION on top and you will do the right thing, those items (in 99% of cases) do not apply to taxes.

Unless you own a  brick and mortal store you can't be forced to charge your customers tax on items already taxed ..but even in many

cases such as Goodwill , cannot charge tax even at POS register. Charity status!!

The system tries to skim as much as they can especially with confusion surrounding this topic.

Redundant profiteering should be illegal.

The system was not designed by us,we don't garnish the profits..  that's why there is so much confusion.

Educate yourselves, and keep safe.

[ypdc_dennis]

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@of-the-world wrote:
... Redundant profiteering should be illegal.

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Canada's GST/HST is a VAT (Value Added Tax) system.

If you are registered to collect sales tax, you collect tax from sales then SUBTRACT what you paid in sales tax for your goods and services. If the amount is positive you pay the government the difference, if negative the government pays you the difference.

For sellers who do a lot of exporting (where no sales tax collected) this is money in the sellers pocket if they are registered.

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