HST on shipping labels

Happy New Year

Im sure In late to the party on the is question...

Just printed an Ebay shipping label to Ontario from Manitoba. Toatal Cost $15.56

Is The HST in the $15.56 or do I do a manual calculation to get an Input tax credit, if so how do I prove it

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HST on shipping labels


@golfing_in_style wrote:

Happy New Year

Im sure In late to the party on the is question...

Just printed an Ebay shipping label to Ontario from Manitoba. Toatal Cost $15.56

Is The HST in the $15.56 or do I do a manual calculation to get an Input tax credit, if so how do I prove it


Normal disclaimers apply. I'm not a tax professional. You should verify everything below for yourself or believe none of it.

 

It seems to be included. You can verify this by taking the Canada Post level 4 price, adding the fuel surcharge, and then comparing it to the cost you paid. The difference should be equal to the tax.

 

eBay supposedly was going to get the tax broken out by the end of 2023, which apparently hasn't happened yet. You'll probably have to do a manual calculation, although it might not hurt to wait a few weeks and see if eBay will finally get it done. Remember to use the correct calculations as you probably won't be able to claim the full tax for all provinces.

 

I don't THINK we need to provide proof for amounts under a certain threshold (I think it's $30, which I'm guessing most of the labels would fall under) as long as we can show the purchase value, although this part I'm a little unsure of.  Labels over $30 I'm not sure we can claim until eBay gets its act together as the statements don't indicate that tax is included.  I'd love some other people's input on this part.

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HST on shipping labels

Yes the HST/GST/PST is buried in the label price so you have to do the reverse calculation. There is the added dificulty that the rate of HST/GST charged should be based on the destination. You would need to consider this to get truly accurate ITC amounts.

 

I don't use eBay shipping, does the Tax Invoice have a line for shipping charges with the HST/GST shown seperately? If it shows there then there is no need to track it by individual charge.

 

 

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
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HST on shipping labels


@recped wrote:

 

I don't use eBay shipping, does the Tax Invoice have a line for shipping charges with the HST/GST shown seperately? If it shows there then there is no need to track it by individual charge.

 


No, it doesn't. That's the problem. It has a line for shipping charges, but the tax isn't broken out and the invoice doesn't specifically indicate that tax was paid on it.

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