What is the formula that Managed Payments is using to calculate GST?

[lotsa.luck]

How is managed payments is calculating GST/HST/QST that is charged on a transaction's 'Total Fees'? (found at the bottom of each 'Transaction details' page for each transaction.)

The GST rate is 5% for Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon so it should be very simple to calculate.

Some transactions come out as expected, but plenty are charging more GST than expected, seems to be always in ebays favour, and seems to occur whether the transaction is USD or CAD.

Does anyone know what is the exact formula that Managed Payments is using to calculate GST? Or why extra is being charged only some instances?

[avionsunantiques]

They appear to also charge gst on the mail cost (which is a double tax because gst is included in the mail cost).    One more example of ebay stealing money.   

[femmefan1946]

The GST is charged on the "service" eBay provides in collecting and remitting the taxes.

And MP (like PP) charges on the entire payment, including money we never touch like the US "internet" sales taxes.

With HST I could only guess. But some provinces charge tax on "goods and services" while others charge only on "goods".

[pjcdn2005]

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@avionsunantiques wrote:

They appear to also charge gst on the mail cost (which is a double tax because gst is included in the mail cost).    One more example of ebay stealing money.   

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They are required by Revenue Canada to charge gst on their fees. They aren't stealing money or double taxing.

[pjcdn2005]

I haven't ever noticed more than 5% being charged in Alberta  which should be the same as Saskatchewan. Could you please give an example of when it was.

[pjcdn2005]

Provinces that have hst are charged for services. Provinces that have pst and gst are only charged gst on ebay fees.

[recped]

The "formula" is simple, the amount of the fee times the rate of tax (rounded to the nearest penny).

I'm in Ontario, the rate is 13%, eBay charges 13%, the rate NEVER varies (other than via rounding).

You are in SK so the GST rate is 5%, do you have an example where you are charged more than 5% GST on fees?

Just to confirm, we are talking about GST on fees you pay rather than GST/HST (or US Sales Tax) charged to buyers?