eBay

widgetc · ‎07-08-2021

I just went to ship something and saw this:

"Please be advised that Canada Post has not yet updated their services to follow the new EU VAT regulations (IOSS) which went into effect on July 1, 2021. If you sell an item valued up to 150 Euros to a buyer in the European Union, eBay is obliged to automatically collect the VAT from the buyer. This means that, should you ship your item with Canada Post to your buyer in the EU, they may be forced to pay the VAT amount again at the time of delivery or reject the package to be sent back to you at your cost. Your shipments to Canada, US, and countries outside of EU are not affected."

msau4301 · ‎08-20-2021

Sadly it looks like buyers are being charged twice, once from eBay and again from customs. I've temporarily stopped shipping internationally until the "dust settles" as I see someone else had said.

benhsports · ‎08-23-2021

I am a long time seller, a moderately large seller (benhsports) andI have shipped overseas for YEARS. A week or so ago, I revised all of my ebay listings and now I will NOT ship outside of North America any longer. The import tax situation over there is a mess and the chance of a problem now is large so ... forget it. It's just not worth the hassle. I'll sell to North America only. Sorry folks but they made a MESS out of the tax situation and it's a hassle for sellers, with high risk of refused parcels due to double taxaton and then super high cost to get my own parcel shipped back. Bottom line, the sale is not worth the risk associated with shipping to the EU.

benhsports · ‎08-23-2021

so I choose the simple route and exclude these countries. - I agree. I just changed all of my listings ... no more overseas shipping. I am sick and tired of the **bleep** and the hassle. Totally not worth the grief.

darak10 · ‎08-23-2021

anecdotally from my experience shipping to Oz with their VAT process has never been an issue, you put the ABN (its all the same number anyways) in the address somewhere, and no problems. Since this has begun, I also have yet to hear of a European customer of mine getting hit twice on VAT (knock on wood). Nothing Germany, Austria, France, Norway, UK. Not than I've had many, probably around 10 in the last 2.5 months, but no issues Ive been apprised of. I also write the IOSS / VAT number before the city / municipality in the buyers address to ensure it is seen.

I still dont ship to many European countries anymore still due to COVID and all the attendant shipping problems created by the pandemic but anecdotally my business from Europe didnt turn into tumbleweeds during COVID, it has turned into tumbleweeds since implementation of VAT regulations in EU countries. UK sales for me were still strong pre Jan 1, then the calendar turned over and shipping times started going from 5 days to 8-9 weeks and VAT has pretty much zipped up the body bag on business from the UK for me. The Brits have traditionally been as obsessed in getting the cheapest deals as the Americans always are and I think getting dinged extra cash for VAT has driven away a significant number of these people. Pre Feb 1 it was normal for me to have 20 - 25 UK transactions a month, I've had 2 since June 1 (one just arrived too, pretty much one month after shipment date). Same with Europe, VAT has mostly finished Europe off for me. Germans rarely ever come around anymore. I likely will not re-open to most European countries as its a waste of time since the customers just arent there anymore. I'm seeing more Aussies than anyone else lately, and given how expensive shipping to Oz is now, Im finding this a bit of a head scratcher.

The policy decisions of the EU and UK parliaments to enact VAT on low value items have done more than any other factor I can see to kill EU business here I think. Its not worth their time any more, and I dont blame them - I wouldnt buy from here either with the added expense, its a waste of money. Globalism is really going bye bye this last year and a half or so, I'm not sure anyone would have predicted that one.

I'm also wondering why the Canadian govt isnt getting in on the internet sales tax action like the US and everyone else is now, it makes no sense to me why Ottawa hasnt set up some protocol like the Americans have to ding us sales tax on out of country sales....everyone else is, makes me wonder why our guys are missing the tax revenue boat, its a pretty astounding amount of money they are choosing to forgo.

benhsports · ‎08-25-2021

I read your comments. Very well said.

marnotom! · ‎08-25-2021

@darak10 wrote:

I'm also wondering why the Canadian govt isnt getting in on the internet sales tax action like the US and everyone else is now, it makes no sense to me why Ottawa hasnt set up some protocol like the Americans have to ding us sales tax on out of country sales....everyone else is, makes me wonder why our guys are missing the tax revenue boat, its a pretty astounding amount of money they are choosing to forgo.

Apart from low-value items, internet purchases from outside Canada are subject to GST/HST/PST. The rub is that those taxes aren't charged at point of sale. While items sent by carriers other than Canada Post do get dinged for taxes (and duty, if applicable), items sent by mail aren't very consistenly assessed and charged.

https://www.cbsa-asfc..ca/import/postal-postale/menu-eng.h tml

As for the US, prior to the introduction of so-called "internet sales tax," items purchased from out of 40-odd US states would have been subject to "use tax" which would have been roughly equivalent to state sales tax. The problem with use taxes is that the mechanisms to collect them were weak and relied largely on the honour system, and most Americans didn't pay them out of either ignorance or something else.

Other countries such as the UK, Australia, and those in the EU had similar systems as Canada, their effectiveness varying from country to country. (Germany was notorious for stopping and assessing everything that passed through in the mail, for instance.)

domsvinyl · ‎09-15-2021

Some customers are being charged twice, by Ebay and their country customs!
I will be pasting the ebay “order details page” (has VAT Number and paid amt)
on all packages now, hoping it helps!

domsvinyl · ‎09-15-2021

agree 100% .too bad ebay and postal services can’t co-ordinate on this new Tax system.

domsvinyl · ‎09-16-2021

SINCE EBAY IS COLLECTING THE VAT, IT IS THEIR RESPOSIBILITY TO INFORM THE POSTAL AUTHORITIES INVOLVED THAT THIS TAX HAS BEEN PAID!!!! ANYTHING LESS IS AN ABSOLUTE OUTRAGE AND SHIRKING OF THEIR DUTIES. IF ANYONE HAS BEEN FORCED TO PAY VAT TWICE, PLEASE OBTAIN A COPY OF THE RECEIPT OF PAYMENT FROM CUSTOMS AND FORWARD IT TO EBAY DEMANDING A REFUND.

marnotom! · ‎09-16-2021

@domsvinyl wrote:

SINCE EBAY IS COLLECTING THE VAT, IT IS THEIR RESPOSIBILITY TO INFORM THE POSTAL AUTHORITIES INVOLVED THAT THIS TAX HAS BEEN PAID!!!! ANYTHING LESS IS AN ABSOLUTE OUTRAGE AND SHIRKING OF THEIR DUTIES. IF ANYONE HAS BEEN FORCED TO PAY VA..T TWICE, PLEASE OBTAIN A COPY OF THE RECEIPT OF PAYMENT FROM CUSTOMS AND FORWARD IT TO EBAY DEMANDING A REFUND.

No need to SHOUT.

My understanding is that it's the importer's (buyer's) responsibility to ensure that all information on customs documentation is in order. eBay and sellers are merely providing this information on the importer's behalf. The problem is that Canada Post's technology is glitching and the necessary information required to state that VAT has been paid is not on the customs documentation. eBay is doing what the EU and other applicable jurisdictions are requiring of it: collecting VAT due. It's not eBay's fault that Canada Post is not providing the information on customs documentation. Don't forget, while it's not really a practical choice in most cases, Canada Post is not the only game out there for shipping stuff internationally. Other carriers may be doing this correctly.