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Ebay's New Canadian Sales Tax is a scam
Summary: In this discussion, twdi_22 expresses frustration with eBay charging sales tax on used goods sold by individual sellers in Canada, arguing that this is not consistent with Canadian law for private sales. brettjet38 counters that the tax collection is mandated by the Canadian government for online marketplace facilitators like eBay, Amazon, and Etsy, not eBay itself. Other participants, such as mrdutch1001 and reallynicestamps, emphasize that the tax on online sales is a governmental requirement, not eBay’s policy, and is similar to practices in other countries. The conversation reveals confusion and dissatisfaction among sellers and buyers about the application of these taxes on platforms like eBay, with some participants expressing broader criticisms of government tax policies. The thread ends with a note about the discussion being closed due to its length and age.
The only people who should be charging tax on used goods in Canada are businesses. If people are selling their used goods, they are not required to charge tax. The only exception is automobiles. A private sale of an automobile requires tax before you can register that vehicle, but that tax is paid directly to the government by the buyer.
Generally the sale of what is referred to as personal use property is not subject to GST/HST. Personal use property is an item that people own and use for their own personal use. If you sell a used personal use item then the transactions is generally not subject to GST/HST. There are, however, important exceptions to this rule. One relates to the “small supplier” threshold. If the sales of personal use property in a given year exceed $30,000 then you are required to be a GST/HST registrant and you are required to charge and remit GST/HST. The second relates to commercial property. The personal use exemption does not apply to the sale of used commercial property, which is generally always subject to GST/HST.
https://www.northernpolicy.ca/article/tax-implications-of-the-secondhand-economy-4065.asp
Thrift stores, Pawn shops, all of these places are businesses, and must charge tax. They have a GST number these taxes are paid under. If an Ebay seller is doing it as a business, they must be collecting taxes.
Ebay collecting taxes on behalf of the average joe who sells one or two things a year, is extremely shady. There's no business number it's being associated with. What Ebay is doing, is they're collecting taxes, and since there's no business associated with it, they're going to apply those taxes to their own tax debt. Which is as shady as it can get.
I don't buy from Ebay that often, but I was shocked when I went to buy a graphics card from a private seller, and there was tax being charged. Then I noticed their "new policy".
Ebay is dead in Canada.
kh-leslie
·3 years agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.
Thank you for understanding.
fh991586
·3 years agoZombie thread...
Again, arguing about taxes on eBay is futile. It's the country's decision, not eBay's.
cdnannihilator
·3 years agoThe Turdeau government who believes that "budgets balance themselves" is hemorraging money and raising all kinds of NEW taxes, fees and clawbacks to compensate. This "new policy" is a direct result of that.
Votes have consequences. Not happy? Vote for a boi who's not as pretty, but is much smarter when it comes to economics in the next federal election. Yes this new policy sucks, but assign blame where it is due : your scammy and incompetent duly elected federal government.
Canadians are simply getting what they voted for : Liberal rainbows and unicorns! (and higher taxes & fees on everything)
marnotom!
·3 years agoeBay has been collecting and remitting sales taxes on behalf of countries and regions such as the US, UK, EU, Australia, and Norway for some time. The big difference is that sales from sellers outside of the country are also covered in these schemes. Canada is actually behind the curve compared to a lot of industralized nations.
mrdutch1001
·3 years agoand Canadians will get exactly what they don't want with any change of government!
No government is perfect and there is no such thing as perfection in the human race...
everyone makes mistakes and that includes you, me and everyone else= EVERYONE!
sarlan6
·3 years agoThey shouldn’t have listing fees while taking 20 percent. If somebody is using up all kinds of space selling useless junk that doesn’t sell? Limit THEM.
The people here crusading for Ebay? You must be real fun to hang out with.
They take 20 percent of all of your sales. They charge you insertion fees when advertising/selling the item is beneficial to THEM.
That aside, people should band together. Used items SHOULD NOT BE TAXED. Items should NEVER be double taxed. It’s criminal. I do believe that a used thrift shop or business selling used good should be taxed on their income. The buyer shouldn’t have to pay sales tax because it’s full taxation was paid by the initial buyer. Anyone who disputes that sentiment? Very curious. Even for cars as far as I’m concerned. Too much tax. Even how you’re taxed on all of your income, and then everything you buy with your money that’s already been taxed.
We need taxes. I’m not disputing that. Yet they give millions and billions to all of these causes that don’t help their citizens while finding new ways to tax them? One side of the political spectrum should not be allowed to handle money, and we know what side that is. Objectively speaking.
sarlan6
·3 years agoreallynicestamps
·3 years agoThey shouldn’t have listing fees while taking 20 percent.
Sellers have 250 free listings before paying any listing fees.
Store subcribers pay $25 a month for1000 to 10,000 free listings (depending on category)
Fees are charged for processing the buyer's payment.
That payment is made up of three parts.
But the Standard Practice with payment processors (including credit card processors like Moneris) is that the charge is on the money not on how the money was made up.
Provided a seller has not been getting Defects for problematic behaviour, the average fee is about 12.9% while the highest is about 15% (I pay that for the books I sell on another ID).
https://www.ebay.com/help/selling/fees-credits-invoices/store-selling-fees?id=4809
The fee is charged on the Buyer's entire payment.
If somebody is using up all kinds of space selling useless junk that doesn’t sell? Limit THEM.
Useless junk like sportscards? Or cellphone cases? Or postage stamps from countries that don't exist any more?
Who decides what's useless?
They charge you insertion fees when advertising/selling the item is beneficial to THEM.
Jagmeet is my leader, but we live in a capitalist society and eBay is a company whose purpose is to make money.
They make that money by providing a platform and payment processing and negotiating discount postage fees.
I make (some) money selling stuff online. That's my purpose for being here.
Used items SHOULD NOT BE TAXED. Items should NEVER be double taxed.
They are not.
Transactions are taxed. The same item may be involved in multiple transactions even before it gets to the store and is sold as new.
The importer pays duty and sales taxes. The wholesaler pays sales taxes. The retailer pays sales taxes. The customer pays sales taxes. Then if the customer decides the now used item can be sold on a venue like eBay or PoshMark or Amazon the online buyer pays sales taxes on that transaction.
Although overlooked in this is that all those companies get tax credits. And I can't speak for everyone but I got a GST tax credit cheque last month and there was a tax deduction for provincial sales tax on my income tax form.
One side of the political spectrum should not be allowed to handle money, and we know what side that is.
I agree.
I don't want my taxes going to Volkswagen because the Ontario Tories seem unable to understand that the plant will be closed down once the government subsidy ends. I've watched that happen over and over since the 1960s.
Put the money into lithium mines and make money instead of spending it. But those hardscrabble companies don't have well paid appointments to the Board of Directors.
flipistics
·3 years agoI know this is the line from eBay, but I don't think it's actually correct. If the transaction was taxed and not the items, then things like books and precious metals would not be taxed at a different rate. There also wouldn't be a requirement on receipts to show what items had which taxes applied to them.
mrdutch1001
·3 years agoLike the saying goes "One man's trash is another man's treasure" and thus What is useless to one person is valuable to another.
BTW no one is forcing YOU to use eBay but you might just as well know that that you will be hard pressed to find a large marketplace like eBay that does not have similar fees... and the taxations... well that is not unique to eBay, so...your crusade against the taxation processes will get you nowhere, but I do hope you feel better with your rant..
However, if you want to avoid all of those grievances of yours , please feel free to sell your "useless junk" baseball cards locally on Craigslist, Kijiji, FB Marketplace,etc,etc...
Have a great day!
niceoldstuff-1
·3 years agoDon't forget that Ebay charges taxes to BOTH the Seller and the Buyer on the same item and that is ILLEGAL!! I've been a Seller on Ebay for 23 years and it used to be great but every year it got worse and worse and is now the most DISHONEST and CROOKED website out there!
marnotom!
·3 years agoBuyers are charged on the total of the transaction. Sellers are charged on the fees they pay for the transaction. Quite different things.
Objections to this should be raised with your Member of Parliament or the Ministry of Finance, not eBay.
reallynicestamps
·3 years agoZOMBIE THREAD FROM JULY 2022
The problem with zombie threads is that the advice may be out of date and no longer useful.
reallynicestamps
·3 years agoEBay charges our customers sales taxes on the sale (the action not the item).
We pay eBay a fee for assessing, collecting, and remitting those taxes to the appropriate governments , all fourteen of them in Canada, over fifty in theUSA, and don't get me started on the EU and VAT.
jsmclean59
·3 years agoI went into selling preferences and posted my sellers tax rate as 0.00. for my Province location. Now I'll see if the proper sales tax is actually charged (which should be zero). TY for your post and quoting the regulations for small people like us!
pjcdn2005
·3 years agoIt has nothing to do with your location or if you are a big or small seller. If any Canadian seller sells to a Canadian buyer ebay is required to collect tax from that buyer based on the buyers location. It's been the law for a while now.
brettjet38
·3 years agoYou set your selling preferences to your hearts contenet....
All transactions are taxed as are Sales (except bullion .9999% Gold Silver), all of them...
marnotom!
·3 years agoIt's unfortunate that you didn't follow the thread further to find out that the regulations that the original poster posted had nothing to do with online sales made through a digital marketplace such as eBay. It's the marketplace charging, collecting, and remitting the tax, not the small people.
low_flite
·3 years agoI assumed that if eBay was doing this on our behalf, there needed to be an "agent election" agreement in place i.e. the GST506 form.
Did any of you fill one of these out with eBay ? I did not.
I understood they were forced to collect since July 2022, but they sent that amount to me in the payout schedule.
I don't understand how eBay can send a tax authority any collection on our behalf without an official election place.
Honest question, how can you account for the amount sent to the government by eBay when you file without this?
flipistics
·3 years agoI think this is only required if you are registered for GST collection. Those of use that had that number inputed were asked to fill out an election form when the changeover happened. That form was counter-signed by eBay and we received a copy of it. I did anyway.
I don't know what happens with sellers who became registered after that time though.
jul-262670
·3 years agoHello all, lets see the big story , i work hard all year, and My sallary is $50,000 on paper, $27,000 make it to the bank after the taxes and unemployment and others fees. from this 27000$ i have to pay 15% for what ever I buy, so remaing 23000$ in my pocket.
one of the thing I bought was A TV 3000 $ and had to pay Tax 450$
now I want to sell this TV on ebay for 2000$ its used and no warrenty , and i am not a company , why buyrs have to pay tax? plus do i have to declare this 2000$ on my income?? i dont think so. i already paid taxes ahen I bought , and they want to take income tax when i sell it and tax from the buyer?? so this TV made them 1000$ , more than what manufacture does.
so selling on ebay they want tax, what about i move to kijiji , buyer will come home and take the TV and pay no Tax. how about
MARCHE AUX PUCES 99% of buisness they dont clollect tax and not paying Taxes?
mrdutch1001
·3 years agowell how about you just go ahead and sell that TV via Kijiji because you would really need lots of luck to sell that TV here on eBay and have it successfully and safely delivered(unless you had it professionally packaged and shipped via a carrier such as UPS or Fedex or someone other than Canada Post since Canada Post doesn't accept such items for shipping..).
plus you best read up on the Canadian Government's taxation processes as applicable to online Marketplace Facillitators such as eBay, Amazon,etc,etc...
jul-262670
·3 years agoyou missed the point, TV was an example only.
the main Idea is about the TAX paying for used items.
pjcdn2005
·3 years agoI wouldn't recommend selling a TV on here either unless you were going to sell it with local pickup only. It isn't a good idea to ship it. As another poster suggested, a local site might work better for you.
brettjet38
·3 years agoAre you a peer-to-peer seller? Here’s what you need to know
April 30, 2021
Ottawa, Ontario
Canada Revenue Agency
What is a peer-to-peer sale?
A peer-to-peer (P2P) sale is the selling of goods or services from one person or party directly to another. You may be involved in P2P selling if you are connecting with buyers through online platforms like websites, online marketplaces or mobile applications (such as Etsy, eBay, Amazon or Kijiji).
Income tax implications
As a resident of Canada, you have to report your income from all sources inside and outside of the country, including P2P transactions, on your tax return. If you paid tax on foreign income, you could be eligible for a tax credit.
It is important to maintain proper financial records of all your sales and expenses. This applies to the sales you make to buyers in Canada and other countries. Keep records of all your purchases to claim eligible expenses on your return.
GST/HST implications
You may have a reasonable expectation of profit from your online activities, and your total taxable supply may be valued at more than $30,000 over four calendar quarters. If so, you will need to register for, collect and pay to the Canada Revenue Agency the goods and services tax / harmonized sales tax (GST/HST) for taxable supplies of goods and services that you made inside and outside Canada. You can get more details on GST/HST registration requirements at: Find out if you must register for a GST/HST account.
How to correct your tax affairs
If you did not report your income from P2P selling, you may have to pay tax, penalties and interest on that income. You can avoid or reduce penalties and interest by voluntarily correcting your tax affairs. To correct your tax affairs (including corrections to GST/HST returns) and to report income that you did not report in previous years, you may:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2021/are-you-peer-to-peer-se...
rrandomroyalty
·3 years agoflipistics
·3 years agoHow do you figure that? CRA registered businesses are no longer at a tax disadvantage, but can claim tax on shipping / purchases / fees where unregistered people cannot. If anything, this seems to give CRA registered businesses an advantage.
As far as whether or not it should be done, that wasn't ebay's decision. That's something you'll have to take up with the CRA / your local MP or MLA.
leaky-bucket-labs
·3 years agoThank the dominion voting machines for this
mrdutch1001
·3 years agoand you really think another Government would not have done same? Canada follows USA in many aspects and with the USA states' implementation of their "internet tax" was just something that Canada along with all those other countries that have implemented similar taxations, has seen as another avenue where taxation needed to be addressed.
crajax33
·3 years agoWell, lucky for me the seller was a good honest person, who offered to cancel and refund which I took.
I for one am done with ebay. As mentioned, I don't use it much anymore anyway, but this is the straw that breaks the camel's back
mrdutch1001
·3 years agoThis is NOT about eBay...no point in blaming eBay for A Canadian Government Taxation process that encompasses all the large selling sites>eBay,Etsy,Amazon,etc. Sellers and buyers alike need to learn about Canadian Taxation laws that cover internet sales> no different than purchasing USED goods from second hand retail outlets. Ignorance is not an excuse. Blaming eBay is not an excuse.The blame lies on the shoulders of sellers/buyers who do not know their own Canadian taxation laws.
reallynicestamps
·3 years agoI get a lot of my stock from thrift stores-- secondhand book and the like.
The stores charge sales taxes.
mrdutch1001
·4 years agoIf you are listing and selling used goods on a selling site(marketplace facilitator) you are considered as "doing business" from that site and those sales are subject to taxation according to LAW.
and just because such sites as Kijiji, Facebook Marketplace & the like are not currently having to collect taxes, that does not mean that at some point in the near future, that these sites won't be required to set up a proper financial payment/taxation system...enjoy the "freedom" there while you can!
twdi_22
OP4 years ago... if collecting taxes were according to LAW.
... Kijiji, Facebook Marketplace and the like not doing it, would be a violation of said law wouldn't it?
Should also add that Kijiji is owned by Ebay, and they aren't charging taxes there.
It's almost like it's not actually a law or something.
mrdutch1001
·4 years agowell I tell you what...when you become owner of eBay, you can do things your way...
in the meantime, this is eBay's site, and eBay is handling this taxation process as has been set out and YOU do have a choice: accept, adapt, adjust and carry on! .....OR move on!!
fslt40
·3 years agoLike we don't know that... go away!
mcrlmn
·3 years agoLike... Obviously you don't.
Wa wa go away! Ha!
brettjet38
·4 years agoIf you already did not know
This TAX collection system was planned by your elected Canadian Government, not eBay!
It was in the 2021 Canadian Budget, you did read it right, as a voter you should always read what is going through the system in the pork rind, CBC and most mainstream media only tells you the "things" the GOV wants to be publicized...
Also, it applies to all "online marketplaces" Amazon, Etsy, and all others.
Any marketplace "Facilitator" that makes over $30,000.00CDN in sales has no choice other than to charge and collect the tax, this is not an eBay thing, it's a Government thing, put in place by the people you elected and put into office...
If you have an issue you can contact your local MP.
BTW - This is actually a worldwide thing, The UK, USA, Australia, and a whole slew of others already have a similar tax or shortly will.
And, yes it applies to USED GOODS sold through a "marketplace facilitator"
twdi_22
OP4 years agoAmazon, Etsy and all others facilitate business sales. The correct analogy is Kijiji or another online classified that facilitates private sales. Last I checked no online classified is collecting sales tax on personal use items.
So again, this tax is being collected by Ebay, and submitted to the government under their own GST number, and being used to pay their own tax debt.
Ebay is only required to collect sales tax on behalf of entities doing this as a business. Such as Newegg, or other professional resellers.
Thanks though, Chief.
brettjet38
·4 years agoYou are incorrect ALL online purchases except "Bullion" is subject to TAX collection, for every BUYER who purchases online in CANADA, which will soon include so-called "personnel" sales...
twdi_22
OP4 years agoI'm not incorrect. You can stomp your feet all you want. If I buy something off Kijiji, pay through Kijiji, and have them ship me the item... I'm not required to pay tax.
Why is that? Oh why would that be? Oh right, personal used goods are non-taxable if sold between two entities that are not businesses.
Which is exactly what happens on ebay when some guy in Ontario sells me his used video card.
The ONLY WAY this would be taxable with your examples of Etsy and Amazon, would be if that person does this as his business.
OR Ebay itself BUYS the item from that person then SELLS it to me.
Anything else is NOT TAXABLE.
A person in Ontario is not going to have a business number. Therefore the taxes EBAY collects, gets attributed to EBAYS business number, and when those funds are given to the government, they're paying down EBAYS tax debt.
The new law was meant to force drop-shippers that sell on Amazon or Ebay as a BUSINESS to pay taxes, because they weren't.
EBAY has taken it on themselves to apply this to every seller on the website, not just professional sellers, hoping people don't catch on to the fact it's a scam.
It's a scam, regardless how you try to spin it.
brettjet38
·4 years agoAre you a peer-to-peer seller? Here’s what you need to know
April 30, 2021
Ottawa, Ontario
Canada Revenue Agency
What is a peer-to-peer sale?
A peer-to-peer (P2P) sale is the selling of goods or services from one person or party directly to another. You may be involved in P2P selling if you are connecting with buyers through online platforms like websites, online marketplaces or mobile applications (such as Etsy, eBay, Amazon or Kijiji).
Income tax implications
As a resident of Canada, you have to report your income from all sources inside and outside of the country, including P2P transactions, on your tax return. If you paid tax on foreign income, you could be eligible for a tax credit.
It is important to maintain proper financial records of all your sales and expenses. This applies to the sales you make to buyers in Canada and other countries. Keep records of all your purchases to claim eligible expenses on your return.
GST/HST implications
You may have a reasonable expectation of profit from your online activities, and your total taxable supply may be valued at more than $30,000 over four calendar quarters. If so, you will need to register for, collect and pay to the Canada Revenue Agency the goods and services tax / harmonized sales tax (GST/HST) for taxable supplies of goods and services that you made inside and outside Canada. You can get more details on GST/HST registration requirements at: Find out if you must register for a GST/HST account.
How to correct your tax affairs
If you did not report your income from P2P selling, you may have to pay tax, penalties and interest on that income. You can avoid or reduce penalties and interest by voluntarily correcting your tax affairs. To correct your tax affairs (including corrections to GST/HST returns) and to report income that you did not report in previous years, you may:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2021/are-you-peer-to-peer-se...
brettjet38
·4 years agoMy Brother in Law is actually a CRA investigator so I can assure you even Kijiji is in the sights of the CRA, as are all the other platforms.
Did you read about Peer to Peer
You and John Doe conduct a transaction on Kijiji, that's Peer to Peer and INCOME to declare.
angelchildphoto_usa
·3 years ago