eBay Labels for Canadian shipments does NOT break out the taxes paid on the label?

[mandicrafts]

eBay labels for Canadian shipments should break out the HST paid when eBay bills us.
I am an HST registered seller, so I can claim back the HST/GST paid.

Thoughts..... since eBay actually buys the label from CPC, eBay is charged the HST/GST and pays CPC. eBay, as a registered HST/GST platform, can claim this tax back.
When eBay turns around and bills the seller for the label, it is the TOTAL that includes this tax. It isn't broken out as a GST/HST tax because eBay obviously does not remit this to the CRA because they already paid it.
It is not detailed in the Tax Invoice. It is simply a Flat charge taken from our payout or backup $ source. So eBay benefits from claiming it back on their HST/GST number and then charges it AGAIN to the seller and does not have to remit it to the CRA (because it isn't broken out as a tax).

[reallynicestamps]

The artihmetic is beyond me, but just because a retailer (eBay) does not break out the tax on the invoice, does not mean they do not (have to ) pay the tax.

For example, those popular "we pay the tax" sales. The retailer is actually just reducing the price by the amount of the tax and paying it themself.

[flipistics]

I don't believe this is correct. There is zero chance they would get away with doing that. It would be tax fraud. A large company like eBay would be audited every year and that would definitely catch something like this. Just because they don't break it out for US does not mean they don't have to remit it to the government.

This is absolutely a problem though. It's one we've already complained about a few times and nothing seems to be getting done to fix it.

I THINK we can actually break it out ourselves for tax purposes since the individual transaction amounts are below a certain threshold, but we definitely shouldn't HAVE to.

[darak10]

this is a major oversight of ebays they need to address.  My accountant did cartwheels earlier this year trying to understand how this new system operates and *ahem* why ebay does not break these numbers down for sellers at taxtime, to which she got no sufficient or direct answer.  I attribute it to not really caring that much about the Canadian market but regardless it would help out dramatically if they provided for us exactly what you ask for as it was enormous unnecessary additional work for me to tabulate these numbers individually when honestly a few lines of code to calculate it could have saved me all that extra time.  

[regs43]

This was the reply I got in the May monthly chat - Aka not helpful lol

"

@regs43 wrote:

In regards to ebay Labels

Where are the receipts? With the tax amount paid by me as a seller for that label.Something I can download and save for my records

$7.18 was the cost for my one expedited lite label I printed. Showing I paid $7.18 is great in theory but I am a registered business and the tax paid to Canada Post for this label needs to be shown SEPARATE  so sellers with registered businesses can claim appropriately. In Canada there is tax on all shipments sent domestic. How has this not already been fixed? ebay labels has been up and running for a long time, and I recall seeing in past monthly chat threads people asking about receipts back then with the tax breakdown.

@regs43 I did some confirmation on this from the Shipping team and  there currently is no way to see the breakdown unfortunately. But based on seller feedback, they are looking into it."

I am also a registered seller and would like this information!

[wheelersndealers]

Does anyone have a trick to figure out the taxes on the labels? I know I can look up each transaction to figure which province the item went to so I can figure out the tax rate hoping someone has figured out an easier way.

[lotzofuniquegoodies]

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@wheelersndealers wrote:

Does anyone have a trick to figure out the taxes on the labels? I know I can look up each transaction to figure which province the item went to so I can figure out the tax rate hoping someone has figured out an easier way.

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devon@ebay 

Just a reminder heads up on this urgent issue. An itemized receipt for eBay Labels should have been included for these charges from the get go as it would save many sellers lots of work not having to separate.

Thanks,

-Lotz

[flipistics]

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@wheelersndealers wrote:

Does anyone have a trick to figure out the taxes on the labels? I know I can look up each transaction to figure which province the item went to so I can figure out the tax rate hoping someone has figured out an easier way.

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The only thing I can really suggest is to set up a spreadsheet that automatically calculates it. Unfortunately it would take a bit of work to set up since the transaction report doesn't include the freaking province in the entry for the label. You'd have to pull it by matching the order number to fully automate it.

[ricarmic]

As an alternative, you can derive the province from the first letter of the postal code, for example QC starts with G,H and J and ON starts with K,L,M,N,P etc for the other provinces and territories.....

The chart here has all the postal code ranges for the various parcel rates:

https://www.canadapost-postescanada.ca/cpc/en/tools/rate-code-table-lookup.page  

(you have to put in your postal code first)

[reallynicestamps]

If you are buying the label, the tax would be to YOUR province surely?

Destination has nothing to do with it.

Although the customer pays us to buy the label, we buy the label.

Our purchase.

We pay the sales taxes for our province.

[pjcdn2005]

Tax for business shipping labels is based on the destination province.  I'm not sure if it works the same

when purchasing as an individual at the post office.

[ricarmic]

@pjcdn2005 @reallynicestamps 

This is interesting.

I can confirm that the "stamps on the box" folks like me pay ONLY their local tax rate when purchasing the stamps irregardless of destination province. (because the parcel gets marked as "stamps affixed" or something similar at shipping time, the taxes are already covered on the assumption they were paid at "stamp buying time"). 

I don't use the labels as everyone knows but my understanding was the same as pjc's that the tax rate is based on the destination province when one is using the online/labels.

[msau4301]

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@wheelersndealers wrote:

Does anyone have a trick to figure out the taxes on the labels? I know I can look up each transaction to figure which province the item went to so I can figure out the tax rate hoping someone has figured out an easier way.

---

Not sure if this helps or not (because tax rates are different based on province but I do remember as a bookkeeper back when the 7% GST was introduced way back our accountant had said if you had a total that included the tax you take the amount x 100 then divide by 107. For easy example $10 including 7% GST (x 100 then divided by 107) = $9.35 the net amount would be $9.35 with .65 GST. If it was 13% HST you would x 100 then divide by 113) that would leave you with the amount before any tax.

Not sure if that helps in this case (teaching is not my forte) but the math will work if you know the % of tax. 

[flipistics]

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@ricarmic wrote:

As an alternative, you can derive the province from the first letter of the postal code, for example QC starts with G,H and J and ON starts with K,L,M,N,P etc for the other provinces and territories.....

The chart here has all the postal code ranges for the various parcel rates:

https://www.canadapost-postescanada.ca/cpc/en/tools/rate-code-table-lookup.page  

(you have to put in your postal code first)

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Yeah, the problem is that the transaction report doesn't include the postal code on the entry for the shipping label either. You have to match transaction numbers. It's really ridiculous. It's like they designed it to make it as hard as possible to do.

I'm also not sure what tax rate should actually be used. As others have said, when buying labels through Canada Post the destination province is used for taxes. When buying it through eBay, it's possible we might be charged local taxes. We don't know if the amounts are being passed through or if eBay is literally reselling it to us as a local service.

[flipistics]

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@msau4301 wrote:

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@wheelersndealers wrote:

Does anyone have a trick to figure out the taxes on the labels? I know I can look up each transaction to figure which province the item went to so I can figure out the tax rate hoping someone has figured out an easier way.

---

Not sure if this helps or not (because tax rates are different based on province but I do remember as a bookkeeper back when the 7% GST was introduced way back our accountant had said if you had a total that included the tax you take the amount x 100 then divide by 107. For easy example $10 including 7% GST (x 100 then divided by 107) = $9.35 the net amount would be $9.35 with .65 GST. If it was 13% HST you would x 100 then divide by 113) that would leave you with the amount before any tax.

Not sure if that helps in this case (teaching is not my forte) but the math will work if you know the % of tax. 

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The CRA has a calculator where you can enter the information and calculate the amounts based on province and pre or post tax amounts.

[dinomitesales]

Can confirm: when sending Expedited/Xpresspost/Priority within Canada you're charged the HST (or GST for non-HST provinces) of the destination province.

Lettermail (and International Letter-post under $5) you're charged the HST or GST of the province you're purchasing postage in (i.e. your home province). Anything more than $5 leaving the country is not taxed.

See: https://www.canadapost-postescanada.ca/cpc/en/support/kb/receiving/general-information/what-taxes-ap...

[devon@ebay]

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@lotzofuniquegoodies wrote:

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@wheelersndealers wrote:

Does anyone have a trick to figure out the taxes on the labels? I know I can look up each transaction to figure which province the item went to so I can figure out the tax rate hoping someone has figured out an easier way.

---

devon@ebay 

Just a reminder heads up on this urgent issue. An itemized receipt for eBay Labels should have been included for these charges from the get go as it would save many sellers lots of work not having to separate.

Thanks,

-Lotz

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Hi @lotzofuniquegoodies! I have this sent over to the Shipping team and if there is any insight to share I will be sure to let you and others know. 

[pjcdn2005]

devon@ebay 

Please pass on this information too.

According to the information on the Revenue Canada site, if Canada Post and/or eBay are charging sellers GST/HST for labels they must at least provide to all customers the GST/HST rate that they are charging.

However, if the seller has a GST/HST number they must also have specific information such as the business number of the company that is collecting the tax and the date of the transaction.  There may be other information that is required as well but I'm sure that Revenue Canada can provide that. 

From the  Revenue Canada site:

You must let your customers know if the GST/HST is being applied to their purchases. You can use cash register receipts, invoices, contracts, or post signs at your place of business to inform your customers whether the GST/HST is included in the price, or added separately. You have to show the GST/HST rate that applies to the supply. Also, you have to either show the amount paid or payable for the supply separately from the amount of GST/HST payable on the supply or show that the total amount paid or payable for a supply includes the GST/HST.

If HST applies to the supply, show the total HST rate. Do not show the federal and provincial parts of the HST separately

You have to give customers who are GST/HST registrants specific information on the invoices, receipts, contracts, or other business papers that you use when you supply taxable goods and services. They need this information to support their claims for input tax credits (ITCs) or rebates for the GST/HST you charged.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-col...

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At the moment we have no indication of what percentage is being charged for tax and what the total amount is for the label before tax.   This information is provided by every other label provider including Canada Post so it shouldn't be a problem to include it on one side of the labels as Shippo does or provide it elsewhere on eBay.  If eBay is collecting this tax from sellers, it is required by Revenue Canada that they provide the information.

[recped]

Not blaming you devon@ebay but this issue has been brought to the attention of the "shipping team" a number of times over a period of many years yet absolutely nothing ever changes. There was a time, perhaps 8 years ago when eBay labels charged and broke down gst/hst correctly, if I recall correctly that was when labels were purchased through PayPal and billed by PayPal. After July 17, 2015.....never worked again.

[busybeas_books]

Found a calculator on the Canada Revenue site that figures out the tax 

www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-whi...

you can put in the after tax amount, province it's heading to and get the pre-tax amount and tax breakdown.