selling on e bay from Canada to USA Declaration Form

[walteratk-0]

Hello, I am selling items from Canada to the USA offering free shipping so when filling out the customs form im not sure if I include the shipping charges in the total value of the item or seperate the two.  So far the items ive sold have been approx $50.00-$100.00 or less

Also since im only selling my personal belongings and not a business, does anyone know if I need to declare profits  to Revenue Canada for 2017.

Thank you,

Walter

[momcqueen · Accepted solution]

I've never separated the value of shipping from the value of the item where 'free' shipping was used UNLESS I knew the buyer would pay import taxes on the value of the goods and postage imported. The USA de minimus is $800 USD so that's not relevant to your scenario. To be safe, you could. If you had a postal loss, this may make your insurance claim reimbursement smoother. 

All profit needs to be declared as income on taxes, hobby or not. You can afford to not collect retail tax until you meet the $30,000 per year in sales threshold. As I understand it. Another user may clarify this advice. 

[momcqueen · Accepted solution]

Or not. I could be incorrect about it. I'm trying to recall what my accountant told me but drawing a blank. I know there's something about  'personal items' but I can't remember how 'personal items' are actually determined for tax purposes. Someone else will know better than I. 

[momcqueen · Accepted solution]

https://turbotax.intuit.ca/tips/you-may-have-business-income-and-not-even-know-it-2-2387

[momcqueen · Accepted solution]

https://money.stackexchange.com/questions/5331/does-the-sale-of-personal-items-need-to-be-declared-a...

[momcqueen · Accepted solution]

And finally http://www.taxtips.ca/personaltax/ebaysellers.htm

But I would caution you to speak to your accountant and/or tax preparer about this. Selling online is public and obvious. I'd not try to fool with my taxes. 

[femmefan1946 · Accepted solution]

Keep track of ALL your expenses (tape, paper, bubble wrap, postage, fees).

Keep track of ALL your sales.

Subtract the first from the second.

Now you know the profit (if any) to declare on your income tax.

If you are using any of the currently three shipping services available online to eBay sellers, the customs declaration will self-fill to some extent.

You may need the HS code, which is an international description of the item you are shipping.

https://www.canadapost.ca/cpotools/apps/wtz/business/findHsCode?execution=e1s1

Otherwise customs is your buyer's problem.

There are a lot of threads about shipping labels. Watch for ypdc_dennis who is our resident shipping guru and is keeping an eye on best deals.

Shipping is by far the hardest part of selling by mail order.

Best wishes.

[cumos55 · Accepted solution]

Many sellers on eBay follow the principle that with free shipping  the cost of shipping is included in the price.

True free shipping  is a situation  where the price of an item does not contain the cost of shipping

True free shipping means there is a zero cost for shipping paid by a buyer.

If you sell an item with free shipping to a US buyer  the value on the declaration is the price paid by the buyer.....  and with no deduction of shipping cost.

In a truly legal definition  free shipping means a zero cost for shipping paid by a buyer.....