GST/HST on eBay Fees?

135 REPLIES 135

GST/HST on eBay Fees?


@pierrelebel wrote:

Coming to Canada soon?

 

http://www.ecommercebytes.com/cab/abn/y15/m01/i07/s03


Probably not. Germany has a real dislike for the kind of tricks foreign companies use to dodge the VAT, I don't think the feds here care so much.

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 2 of 136
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GST/HST on eBay Fees?

GST/HST on eBay fees based on where I live...

 

That would be GST = 5 %  for a seller in Manitoba ...and ... it would be an input tax credit....an ITC

 

Canadian sales only????  or ... All sales.

 

Very confusing as to how it would be applied in Canada...

 

 

We had this discussion a few years ago...... Remember IT... 

 

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and ....what happens if a seller includes GST/HST in the price plus shipping cost for a Canadian buyer....

 

Then  there will be  a collection of GST/HST on fees,  GST/HST included,  where there has already been a calculation of fees on GST/HST included in the price and shipping cost...

 

If eBay wants to charge GST/HST on fees  then eBay will have to allow me to put a different number for GST/HST for  books sold as opposed to  shipping cost...

 

Only then should they calculate GST/HST on fees calculated ..only .... for the  value of the book and shipping cost ... with no GST/HST included in the price.of the book or shipping cost...

 

 

Message 3 of 136
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GST/HST on eBay Fees?

Books are exempt from the provincial component of HST.....

 

But not postage..... 

 

 

Message 4 of 136
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GST/HST on eBay Fees?

Gst/Hst is already included in your fees, just use the wright formula to extract the tax, your monthly fees are $150 or more monthly and you pay your fees on a canadian credit card.

Message 5 of 136
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GST/HST on eBay Fees?

"Gst/Hst is already included in your fees"

 

As the poster is well aware, that subject was covered a few years ago and eBay-Canada clearly indicated that there is no GST or HST included in the fees they charge sellers, nor is GST or HST payable on those fees as the service is not taxable - being provided outside Canada.

Message 6 of 136
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GST/HST on eBay Fees?

ebay.ca is a canadian company with a Gst/hst #

 

they must collect tax on services rendered to its users(sellers)

 

tax applies to fees of $150 or more per month, this as now been expanded to paypal(ebay.ca)

 

 

Message 7 of 136
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GST/HST on eBay Fees?

The last time the subject was raised (by the same poster under an old User ID), the staff at eBay answered:

 

http://community.ebay.ca/t5/User-to-User-Help/Is-Ebay-ca-a-canadian-website/m-p/206213#M955

 

"Just to confirm, eBay.ca rolls up to eBay International AG in Switzerland, therefore, we do not collect or remit GST"

Message 8 of 136
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GST/HST on eBay Fees?

That GST/HST discussion lasted many days.

 

It was carefully edited by eBay... deleting all inaccuracies.

 

Then the discussion sat at the top of the first page of all discussion on eBay.ca for a full 30 days.

 

The one inaccuracy removed from that discussion was the statement that ... eBay collected GST on all fees charged to Canadian sellers.

 

Any further discussion about this ... eBay collects GST on all seller fees .... would be redundant and not needed....

 

 

Message 9 of 136
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GST/HST on eBay Fees?

Hello everyone,

 

Just wanted to confirm that eBay Canada does not charge any sales tax on eBay fees. If you look at your monthly invoice, you will notice it comes from eBay International AG, a company based in Switzerland and which is not allowed to collect Canadian taxes.

 

Furthermore, if there were taxes applied to your eBay Canada invoice, these would need to be identified on separate lined along with the relevant tax numbers, all of which are not on there.

 

Hope this helps clarify your questions.

Message 10 of 136
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GST/HST on eBay Fees?

Thank you Raphael for the clarification.

Message 11 of 136
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GST/HST on eBay Fees?

Hi Pierre I have a question for you related to GST/HST.  Recently CRA insisted that I get registered to collect GST/HST which I did even though my Canadian sales are dismal and probably less than $15K a year. Although my USA sales are at least 3 times that number.  My question to you is do I have to collect GST on all my sales from Canada even though I have never made more than 15K per year from Canadian customers over the last 14 years? Thanks for your help on this, I Know this question is not related to the topic, but the heading triggered me to ask.

Message 12 of 136
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GST/HST on eBay Fees?

" do I have to collect GST on all my sales from Canada even though I have never made more than 15K per year from Canadian customers "

 

The requirement to register with GST/HST is based on Cdn$30,000 worldwide revenue (sales and shipping charge).  So, even with only $1,000 sales to Canada and $30,000 to the USA and overseas, a Canadian is required by law to register.

 

As far as sales to Canadians are concerned, sellers have basically two options:

 

1) They can collect GST or HST (rate varies from 5% to 15% depending on province where the goods are shipped) and remit it to the federal government on a regular basis. 

 

2) They can absorb the GST/HST in their prices.  However, they still need to remit GST/HST (rate varies from 5% to 15% depending on province where the goods are shipped) to the federal government on a regular basis (just as they would if they had collected the tax..  

 

In most cases, a yearly GST/HST return is all that is required.  For registrants with a larger sales volume, monthly or quarterly returns may be required.

 

Now, once registered, there is a requirement to provide all your Canadian customers with an invoice (or receipt) showing your Registration Number, even if you do not charge the tax extra but absorb it.  Some of your customers, unknown to you, may be GST/HST registered and will claim ITC on their purchases from you.

 

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/itc-cti/nvc-eng.html

 

A year from now, you may be very happy to be GST/HST registered as you may receive a refund from the federal government on all the tax you have paid on all your purchases and business related expenses.  This is often the case for sellers experiencing a large percentage of their sales outside Canada (where no tax apply).

Message 13 of 136
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GST/HST on eBay Fees?

Pierre thanks so much for the quick and thorough reply.  I appreciate it very much.........Linda

Message 14 of 136
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GST/HST on eBay Fees?

The total in annual sales... $30,000  is for ALL sales worldwide.

 

and

 

That total includes the cost of shipping.

 

Buyers pay a seller a total amount based on an invoice.... and the seller selects and pays for the shipping option.

 

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Total sales worldwide may be less than $30,000... but with the added amount buyers paid for postage.... that is ...Shipping and Handling....the total can and most likely will be more than $30,000.

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If the total for GST/HST collected for Canadian sales plus postage is less than the GST/HST paid when inventory and supplies (and  other costs related to business) are bought... then a seller gets a refund of GST/HST

 

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There is a lot to learn about GST/HST....  CRA's  (CRA = Canada Revenue Agency) website is full of information... and someone like Pierre is also full of answers...for those who have questions....

 

Get the answer and reread CRA's information for confirmation.

 

CRA also has a telephone service  where answers can be obtained

 

 

 

 

 

 

Message 15 of 136
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GST/HST on eBay Fees?

This is a bad statement, stay tuned for news.

Message 16 of 136
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GST/HST on eBay Fees?


@anguscoinshop*ca wrote:

This is a bad statement, stay tuned for news.


We've been waiting years for your "news"!

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 17 of 136
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GST/HST on eBay Fees?

Anonymous
Not applicable

As far as I am concerned, I consider eBay as the "all-year round garage sale", we don't collect/charge any taxes, therefore it should be the same with eBay.  Thanks.

Message 18 of 136
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GST/HST on eBay Fees?

"I consider eBay as the "all-year round garage sale", we don't collect/charge any taxes"

 

As long as your annual worldwide revenues (including shipping charges) are below Cdn$ 30,000 there is no need to register with GST/HST. 

 

Annual worldwide Revenues above Cdn$30,000 require GST/HST registration.  This is not optional and it does not really matter if one consider the business "hobby" or "garage sale" or "small business"

 

Many Canadian sellers with revenues below Cdn$ 30,000 do find it beneficial to register in order to claim ITCs.

 

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html

 

The reason why eBay does not charge GST/HST on its services is that:

1) it is foreign based

and

2) the service provided comes from their servers located in the USA, not in Canada.

Message 19 of 136
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GST/HST on eBay Fees?

It is obvious that Raphael is not versed at all on Canadian taxation laws.

 

I would give results of my recent audit from the CRA but i don't see anyone on this board that would benefit from it. Most of you are simply so stubbornly pro-ebay.

 

Message 20 of 136
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