Does Ebay.ca remit HST/GST to the CRA?

[custom_z_scales]

My first year being registered to collect HST.  Ebay does NOT remit to the CRA on your behalf, this is correct?  

Downloading sales activity reports filtered by Canadian sales, it appears the amount deposited after final value fees, etc, does seem to include the HST / GST charged to the customer.   

But I did fail grade 10 math three times. 

Thanks!

[pjcdn2005]

Correct, eBay does not submit tax from Canadian buyers. If the seller is registered for hst/gst then they have to collect and submit the tax.

ebay does submit the taxes that they collected on your fees.  When you fill out the forms for gst, the tax you paid on those fees (and other tax that you paid on business expenses etc) can be deducted from the  tax you collected from your buyers.

Does that make sense?

[custom_z_scales]

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@pjcdn2005 wrote:

Correct, eBay does not submit tax from Canadian buyers. If the seller is registered for hst/gst then they have to collect and submit the tax.

ebay does submit the taxes that they collected on your fees.  When you fill out the forms for gst, the tax you paid on those fees (and other tax that you paid on business expenses etc) can be deducted from the  tax you collected from your buyers.

Does that make sense?

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That makes perfect sense.  And even more enlightening is knowing that taxes from my selling fees can be deducted from it.  

Side question:  Can the HST paid on raw materials for my products be deducted from the GST/HST collected from sales?

[ricarmic]

I suggest it would be very much worth your while to spend the $$ to get a couple hours consultation from an accountant familiar with small/homebased business, they can help you with all the aspects of GST/HST, related/allowed selling expenses etc.

Once they've got you set up, you can maintain it yourself but you'll start off on the right foot....

PS yes is the answer to the latest, it is part of your ITC (Installment tax credits)...

[custom_z_scales]

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@ricarmic wrote:
I suggest it would be very much worth your while to spend the $$ to get a couple hours consultation from an accountant familiar with small/homebased business, they can help you with all the aspects of GST/HST, related/allowed selling expenses etc.

Once they've got you set up, you can maintain it yourself but you'll start off on the right foot....

PS yes is the answer to the latest, it is part of your ITC (Installment tax credits)...

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Yes, I have a professional accountant for small business which I used for last years return and was a huge time saver, and money saver.  But since I only registered in June 2020 for an HST number as my sales surpassed 30 000 and now have to remit, i just wanted to verify from other sellers what I suspected to be the case with eBay not remitting sales tax (for canadian sales) 

Thank you both!

[ricarmic]

It is very good that you've done it this way!

At a high level, the ITC cover virtually everything you buy or use to run your business including the original item/inputs, ebay fees, envelopes, computers, supplies, etc etc...all the GST/HST you spent is taken off what you owe... you'll already have it all through your receipts, so your accountant will know what to do with it!