eBay

wingnut*12 · ‎06-22-2017

Sales tax in Canada is out of control and under the new scheme on July 1st we are all liable . It virtually puts me out of business as with Ebay fees and shipping costs , model trains are no longer affordable to my customers . Why do this to us ?

femmefan1946 · ‎06-23-2017

Doyou mean the sales tax charge on eBay fees?

That will add 0.5% to 1.5% to the fees you pay which are about 10% of the selling and shipping prices you sell.

And if you are GST registered, although few Canadian sellers are, that becomes an export tax credit.

Which means you actually get money back on GST.

On a different note, you know your own business best of course, but using Free Shipping on an item that must be shipped Parcel Rate, is asking to lose money.

Parcels rates are based not only on weight and dimensions but also on destination.

I can ship a 17x10x3 paperback from BC to AB for under $5 but it costs over $12 to send the same book to NL.

ypdc_dennis · ‎06-23-2017

@wingnut*12 wrote:
Sales tax in Canada is out of control and under the new scheme on July 1st we are all liable.

Ebay will be collecting GST/HST on your monthly eBay invoice for fees (something they've avoided doing for years).

It DOES NOT require you to collect tax on your sales.

...

This has been discussed before:

https://community.ebay.ca/t5/Seller-Central/Canadian-sellers-to-be-charged-GST-HST-QST-on-all-fees-e...

-..-

revaud · ‎06-23-2017

revaud · ‎06-23-2017

Everyone should be collecting tax on sales.Assuming you are not selling your own things. But if you are selling for a profit, you will get nailed by the CRA eventually anyways.I have been audited and so many people I know have been also audited because of Ebay selling.Ebay was forced to send all our information including sales to the CRA a number of years ago and they are slowly working their way through to all sellers.

momcqueen · ‎06-23-2017

Any seller selling for profit should be providing an account to CRA at tax time on their profits and losses. I'm not a tax accountant but I use one. Every ebay seller would be smart to follow suit.

femmefan1946 · ‎06-23-2017

Everyone should be collecting tax on sales.

A lot of the small sellers here are 'garage salers'.

It's clearing the basement, granny's estate or even just a hobby.

If a seller is selling more than (I believe $30,000) a year, she MUST register to remit sales taxes.

In some provinces it is required to show the provincial sales tax being collected (Ontario for one.). In others it may not be required.

Not being a tax accountant either, I'll stop there.

BUT any seller should keep track of her sales, because her profits must be reported on her income tax.

Our guru on this subject has been pierrelebel. Look up his past posts on taxes and tax collecting over the years. There are dozens.

ypdc_dennis · ‎06-23-2017

@femmefan1946 wrote:

If a seller is selling more than (I believe $30,000) a year, she MUST register to remit sales taxes.
In some provinces it is required to show the provincial sales tax being collected (Ontario for one.).

Ontario is an HST province these days, so $30,000 is the required sales threshold.

cumos55 · ‎06-23-2017

The total of $30,000 is sales plus postage.

You are legally required to register to collect GST/HST if the total is more than $30,000

Some sellers may choose to register even if their total is less than $30,000.

If the Input Tax Credit (ITC) is higher than the GST/HST collected from Canadian buyers then sellers will get a refund.

This is a consideration for sellers than sell a very high percentage to non-Canadian buyers... that is US and elsewhere buyers.

The Tax they pay when inventory is purchased becomes an ITC and if ITC is greater than the amount collected on sales to Canadian buyers ... this seller will get a refund of GST/HST from Canada Revenue Agency