eBay

junior_high · ‎02-04-2022

I am a small Canadian seller that dropships items to customers mainly in the U.S. and internationally, with a few Canadian customers as well.

I just contacted eBay today, and they said that they automatically charge the taxes, depending on the country the customer lives in.

My question is this - is eBay remitting this to the Canada Tax Revenue Agency, or do we?

Also, where can I find a report on eBay that summarize how much GST (and possibly provincial sales tax) was collected by eBay?

Thanks in advance for your help with this.

reallynicestamps · ‎08-14-2022

More important than "how much Canadian tax was collected by eBay from my customers? " would be

"can I still claim credits for the taxes I paid out when I purchased and for items that I exported?"

Since you are dropshipping and do not ever actually see the products you are selling, this is a very interesting question.

marnotom! · ‎08-14-2022

@reallynicestamps wrote:

More important than "how much Canadian tax was collected by eBay from my customers? " would be
"can I still claim credits for the taxes I paid out when I purchased and for items that I exported?"

Since you are dropshipping and do not ever actually see the products you are selling, this is a very interesting question.

This thread dates back to February, several months before eBay started charging and collecting taxes on Canadian sales to Canadians, so this is truly a zombie thread.

Anyway, eBay doesn't see the products, either. Remember, the party line from eBay is that the taxes are charged on the transaction, not the item, so if the seller and buyer are located in Canada, that would trigger the "tax bot" on the sale. In other words, it's eBay that's on record for charging the tax, not the seller.

I suspect the OP has bigger problems on their hands, though. It looks as though they originally registered with a US address or on the .com site as their registration country shows up as the US. They may be battling Managed Payments now.