Ebay charging taxes on taxes with sellers.

[gorydeath3]

I been with ebay since the first year. This account for 23 years. I just know my seller fee gets taxed. But then ebay taxes the total with the other taxes added.
Ex: item price $100
Shipping $20
Sales tax $4.40
Total $104.40
Then use that total for final value fee and then take off my sellers discount and add their other fees. The final total was $12.42 in fees which then ebay added another $1.61 in taxes for that fee. So I end up paying taxes twice on one item.

[mrdutch1001]

and???

  eBay does not hide the way in which fees are calculated....and it is seller responsibility to know these fees and how they are calculated.......

[ilikehockeyjerseys]

Every eBay seller should be registered for GST at this point. There is no real downside when eBay is already going to charge buyers the tax regardless.

Of course, if you're just selling some of your old stuff online then it might be a different story, but eBay isn't really a platform aimed at "garage sale" selling anymore. 

If you register for GST, you can claim back any GST you pay on business expenses as in input tax credit. In short, you get back the GST you pay for your business inputs (stock, supplies, fees, postage, etc) minus the GST that is collected from your sales. If you fill out the proper forms, eBay is then collecting the GST on your behalf. So you end up with no GST to pay out (since eBay did that already, presumably), and a large refund of tax credits. 

The old argument for not registering was that there was a competitive advantage to maintaining a small supplier status for some sellers who weren't going to exceed 30k in revenue. Since eBay collects GST regardless, assuming you claim your business activities on your taxes, there is zero point not to be registered. 

(Keep in mind, I am not an accountant. The above could all be fiction. It is not accounting advice, or a substitute for speaking to an actual accountant. It is based on my experiences with no implied warranty...or whatever.)

[flipistics]

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@gorydeath3 wrote:
I been with ebay since the first year. This account for 23 years. I just know my seller fee gets taxed. But then ebay taxes the total with the other taxes added.
Ex: item price $100
Shipping $20
Sales tax $4.40
Total $104.40
Then use that total for final value fee and then take off my sellers discount and add their other fees. The final total was $12.42 in fees which then ebay added another $1.61 in taxes for that fee. So I end up paying taxes twice on one item.

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• The buyer pays tax on the item (not you), which eBay remits to the government.
• eBay provides a selling platform to you as a service and charges you selling fees. The selling fees are not a tax. They do have to charge tax on those selling fees like any other company providing a service.
• You buy postage to ship your item. Again, the shipping company is providing you a service and has to charge tax on it.

If you're registered to collect GST/HST you can get some or all of the taxes YOU pay as part of your business back, but you also have to charge tax on any items you sell as part of your business (including on places like Facebook). eBay handles this automatically for us, but some other platforms don't.

[brettjet38]

If you already did not know & evidently you do NOT...

This TAX collection system was planned by your elected Canadian Government, not eBay!

It was in the 2021 Canadian Budget, you did read it right, as a voter you should always read what is going through the system in the pork rind, CBC and most mainstream media only tells you the "things" the GOV wants to be publicized...

Also, it applies to all "online marketplaces" Amazon, Etsy, and all others. 

Any marketplace "Facilitator" that makes over $30,000.00CDN in sales has no choice other than to charge and collect the tax, this is not an eBay thing, it's a Government thing, put in place by the people you elected and put into office...

If you have an issue you can contact your local MP.

BTW - This is actually a worldwide thing, the UK, USA, Australia, and a whole slew of others already have a similar tax and many more shortly will.

And, yes it applies to USED GOODS sold through a "marketplace facilitator"

And the TAXES you are paying are based on the entire amount of the transaction you conducted on eBay, that's the Goods & Services bit...

This is the same thing I post every time I see this USED TAX nonsense, the issue is not eBay it is YOU for not reading about what your government plans and not reading eBay policy about fees charged...