received tax form 1099-k from ebay , but live in Canada

[rainbow*rob]

Just got a email '' information regarding your tax form 1099-k ''  never received this form before , is this just if you sell on ebay.com , if you sold at least $20,000 in gross merchandise and exceeded 200 transactions for goods and services  you will receive this form , but I did not ( not even close )  so will i still get a form even if in live in Canada not the U.S.

[richardcm]

Just in case it is a fake email for some kind of scam, do not reply or go to any links in it. I am not saying it is not real but be careful. Wait for more member replies here. You could also call PayPal once you determine what it is.

[triber]

I just received the same one also, I am going to send a spoof@ebay to see if it is legit. it says it comes from eBay selling, it has my full name.

[triber]

Got a very quick reply from eBay.

Thanks for forwarding the information in this message to spoof@ebay.com.
We take reports like this seriously and appreciate this kind of feedback
from you. Most likely, the message you received was not sent to you by
eBay. 

We'll review the message and work to stop any suspicious websites it
links to. We'll also send your reports to Internet browser companies so
that they can develop tools to identify spoofs.

[recped]

From eBay or PayPal?

eBay would only be issuing 1099's to sellers in Managed Payments and no Canadians qualify as far as I know.

Can you copy/paste the details from the message?

[triber]

If you’ve sold at least $20,000 in gross merchandise value and exceeded 200 transactions for goods and services* on eBay this year, you will be receiving a tax Form 1099-K for all your 2019 sales transactions including relevant internet sales tax.

Internet sales tax was collected and applied to sales transactions for states that required eBay to collect tax in 2019. You can find more tax information and learn how to download your sales reports

Frequently Asked Questions
Who is sending the form to me?
PayPal will send a tax form 1099-K to you and the IRS by January 31, 2020. You can also access the form from your PayPal account.

PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:
• $20,000 USD in gross payment volume from sales of goods or services in a single calendar year • 200 payments for goods or services in the same year*
You may be asked to provide your tax identification number (TIN), such as a Social Security Number (SSN) or Employer Identification Number (EIN), to your existing account(s), if you don’t already have one on file. If your TIN fails verification, you will need to fill out an equivalent tax Form W-9.

What do I do with tax Form 1099-K?
Form 1099-K is used to report income received from electronic payments such as credit cards, debit cards, PayPal, and other third party payers.

Please be aware that the totals shown on the form will include internet sales tax. You will need to remove the total amount of sales tax collected (will be outlined in the report).

[electronicifycanada]

Just ensure the email has exactly paypal.com in the url. It could have some added to it but it would have paypal.com at least. 

If it has paypal.com, it's usually not a spoofed email.

I have seen PayPal send out similar emails to these, I can't remember if it's the exact same. I know you used to have to call PayPal and just tell them you live in Canada and they removed it, but I don't know now with all the recent US tax changes. 

I don't ship to America anymore since that tax change so take what I say with a grain of salt.

[triber]

It is not from Paypal, it says from eBay selling

[brettjet38]

@richardcm @recped @electronicifycanada @triber @rainbow*rob 

I also received this directly from eBay, here on the site in my messages. I suspect it was not supposed to be sent to Canadian registered members...

But, it is Legit from eBay.

I also received it in my emails this morning, but only got in in my eBay messages an hour or two ago, just more eBay ...

[recped]

Thanks for posting.....

Do you have a US PayPal account? Canadians are not really supposed to, my primary PayPal account is Canadian but I have a personal account that is US because I gave them a US address when I set it up.

In any event, if they get uppity you can send them a W8-BEN form which would exempt you from the 1099 process. That works for individuals, if you operate as an "entity" it's a bit more complicated but if papered correctly there is no double taxation.

[ypdc_dennis]

1099-K: https://www.thebalancesmb.com/irs-form-1099-k-what-you-need-to-know-397966

If you are not a company based in the USA or an American citizen (based anywhere in the world) the form can be ignored if issued.  Supposed to be issued in January (not December).

-..-

[blaastperformance]

same here. my registration to ebay dates back when there was just ebay.com so i have never dealt with ebay.ca
as for many ebayers, i also received the 1099 form notifications from ebay. i understand ebay sends this across the board but obviously, you pay income tax only to the country you are officially registered into.
even if you have some usa addresses in your list of ebay addresses for various reasons, it all boils down to your official nationality. Even if you do receive the usa form, if as a canadian you do not have any USA registration numbers such as a TIN, SSN, EIN, that form is to be ignored.

[triber]

It wouldn't actually apply to me anyway. Applies to those selling over $20,000 a year, I don't think I sell a quarter of that. Like you say, we pay Canadian taxes on our sales.

[cumos55]

This email about the 1099-k form was received in eBay messages..  One must conclude that it came from eBay.   Is that correct???

The form comes from Paypal....  Therefore it must be concluded that the total  of $20,000 includes postage..... and if this is a US form it must be in US dollars

For Canadians the total for $20,000 is sales only, in Canadian dollars, and is forwarded to the Canada Revenue Agency.  Is that correct???

Also... When I log into my Paypal account the address is shown as.....

https://www.paypal.com/ca/signin

[cumos55]

The first reality....

State taxes are now charged for sales to buyers that live in states that charge an internet tax....

and that also applies to Canadian sales to US buyers.

The second reality????

Is the US IRS now looking at Canadian sellers that sell to US buyers????

It appears that eBay sent the 1099-K email to Canadian sellers.  Canadian sellers must receive some form of explanation... Now!

[triber]

Yes, it came in eBay messages with a link to Paypal.

I am not sure what is forwarded to the Canadian Revenue Agency, I have never actually seen it. I keep my own records and use that for my taxes.

[cumos55]

If a Canadian  seller gets an official 1099-k,  that seller must contact the US IRS  and provide information as to where that seller lives  and pays taxes....

Canada.....  Canada... Canada.

[epic-sports-cards]

I received the same message, but read carefully cause it start with '' If you’ve sold at least $20,000 in gross merchandise value and exceeded 200 transactions for goods and services''

So,  ''IF''.... i believe its a general message sent to every Canadian seller.

So I have around 700 transactions, so yeah more than 200 (but not over 20k), for your info 1 transaction = 1 ebay auctions, even if a buyer purchase 10 item and pay with 1 bill, it count as 10 transactions.

I did my math and count every paypal payment i received in this year and i am below the 20k, so yeah. as the message from ebay said ''IF''....

thanks, sorry for my english

[hlmacdon]

Not relevant for Canadians.

[recped]

---

@cumos55 wrote:

This email about the 1099-k form was received in eBay messages..  One must conclude that it came from eBay.   Is that correct???

The form comes from Paypal....  Therefore it must be concluded that the total  of $20,000 includes postage..... and if this is a US form it must be in US dollars

For Canadians the total for $20,000 is sales only, in Canadian dollars, and is forwarded to the Canada Revenue Agency.  Is that correct???

Also... When I log into my Paypal account the address is shown as.....

https://www.paypal.com/ca/signin

---

Not correct, neither eBay nor PayPal report anything to CRA unless requested for informatuion on a specific seller. About 15 years ago CRA demanded a list of sales by seller (Powersellers only) from eBay, after several years of negotiations eBay handed over a list for 2009 but I don't think they ever reported after that. Those reports were not in the form of a regular T4/T5 slip, just a list which it was speculated was to be used by CRA to audit sellers who had eBay sales revenue but did not declare any business income on their tax returns.

It's unknown what CRA did with the list but in all the years I've been on the boards I don't recall ever hearing about any audits as a result. Of course not many people are going to reveal that they have been audited as a result of the list eBay submitted (if they even knew that was the reason).