re. tax on ebay store shipping items???? Coupon not covering tax now??

[esclyons]

So i am trying to use my store coupon worth 70$ to buy some items.. I have tried buy it now, and have tried putting the items in my cart, then i enter my coupon code, and the taxes, don't come off with the coupon.. It is asking me to pay the taxes..  I have checked my previous purchases, and the tax and shipping where included in the price. So my coupon covered everything, Now the taxes are separate, and the coupon doesn't pay them.. Can someone please tag tyler on this.. 

[lotzofuniquegoodies]

@reallynicestamps  @intimewithmusic 

My store coupon arrived yesterday. My eBucks arrived today. They usually go out in batches.

The other new interesting nuance is your no longer able to apply your eBucks coupon to any taxes owing. If you were to go over your coupon for supplies you would be able to use towards that balance.

-Lotz

[intimewithmusic]

Thank you "lotz..."! In September 2019 Ebay sent me an email notification and put the coupon in my seller summary. In January 2020 there was no email and no coupon. Looked everywhere. Still nothing. 

[2nd-time-around-jewelry]

I also got my store coupon yesterday & my eBucks coupon today. Went to buy some supplies today & for the First time ever in many years was charged tax. And you are right the store coupon does not cover the tax even though my total is under $70.00. But I was able to add the eBucks coupon seperately to lower the final total a bit. Still owe a little.  Just used  the Add To Cart to see what the total would be, but I have not paid for it yet. Anyone hear if adding the tax was a mistake by eBay & that it will be eventually removed?

[lotzofuniquegoodies]

@2nd-time-around-jewelry 

I made several attempts to use my eBucks coupon. Would not let me apply towards the tax. See post 6 and response from ebayShippingSuppliesCanada. It's a recent change that as you noted does not show up until checkup.

-Lotz

[2nd-time-around-jewelry]

The way I got the eBucks to work was to put the code for it into the seperate (Enter Code & Apply) under the other (Gift Cards, Coupons, eBay Bucks) where I put my store coupon.

[brettjet38]

You are correct, the tax covers the full value of the items purchased and cannot be used to pay that tax unless stated otherwise. The face value of the coupon is only for the value of the "goods" up the value of the coupon (Taxes not included).

Anyway, who cares it's deductible as an expense. 

[tryubik-useonlyasdirected]

Same here, mine showed as a notification bar at the top of 'My eBay' > 'Summary'. There was suddenly a section above the 'Watch List' called 'Coupons.' It list a description, the Redemption Code, and the status Redeemed/Redeemable.

[tryubik-useonlyasdirected]

It is confusing. Today I purchased $73.48 and applied a $70.00 coupon but was charged tax for $73.48. Yes, it's true this can now be deducted in ITC which is helpful. It likely means eBay changed the classification of the coupon.

TaxTips.ca has an interesting breakdown on the different types of coupons/gift certificates and the ways in which Ontario tax is handled against each. In case anyone is interested:
https://www.taxtips.ca/gst/coupons.htm

[lotzofuniquegoodies]

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@tryubik-useonlyasdirected wrote:

It is confusing. Today I purchased $73.48 and applied a $70.00 coupon but was charged tax for $73.48. Yes, it's true this can now be deducted in ITC which is helpful. It likely means eBay changed the classification of the coupon.

TaxTips.ca has an interesting breakdown on the different types of coupons/gift certificates and the ways in which Ontario tax is handled against each. In case anyone is interested:
https://www.taxtips.ca/gst/coupons.htm

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The tax thing is something they changed somewhere in 2021. It did get skipped (No Taxes) for 1 quarter but then got reset. I thought the sudden change was strange at the time too. Most likely because of the volume of transactions they need to collect tax. I've paid on the last 3 coupons. Just kinda anoying to have to generate a transaction for tax when it can't be removed from processed payments received. (Like the old system.....PayPal). Maybe eventually!!!

-Lotz

[38e_avenue]

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@esclyons wrote:

So i am trying to use my store coupon worth 70$ to buy some items.. I have tried buy it now, and have tried putting the items in my cart, then i enter my coupon code, and the taxes, don't come off with the coupon.. It is asking me to pay the taxes..  I have checked my previous purchases, and the tax and shipping where included in the price. So my coupon covered everything, Now the taxes are separate, and the coupon doesn't pay them.. Can someone please tag tyler on this.. 

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It happened only once, that the tax was covered by the coupon. Otherwise, I always pay the tax. 

[reallynicestamps]

Post #5 explains this:

I agree, but it seems to be the general practice that the retailer uses the coupon to reduce the price of the item, but does not use it to pay the tax to the government.

Keep in mind that the retailer is (probably) still making a profit on the reduced price of the purchase.
The tax is paid by the buyer not the seller-- look at those Internet Sales Taxes from US states for an example.

The coupon is looked upon by the tax man as being cash.

And post #13 -- with the arithmetic corrected.

As I remember it, not only was tax not covered by coupons, but the sales tax was on the original value of the item, before the value of the coupon was removed.

So if the value of the product was $100 and the value of the coupon was $50, at 10%  the buyer would pay ($10) in sales taxes and $50( +coupon) for the product.

Again, it's been a while and when I was dealing with it, Ontario had a separate GST and PST.