Question about selling on ebay and remitting taxes
I haven't sold on ebay in a few years, not since the rules were changed about remitting taxes.
I understand ebay collects and remits the sales tax to the government.
Next year when I do my personal taxes, does ebay have tax forms for me or are they already submitted to CRA?
Do I just declare the sales amount on my taxes?
I'm not a compnay or online business, just looking to sell some of my watch and fountain pen collection.
3 comments
what-does-your-watch-say
OP2 months agoThank you recped. Do I need to state how much I sell as income on my taxes?
recped
·2 months agoYes you must report your eBay income.
You would fall into one of two Categories, if you are ONLY selling personal items that have been collected over the years your eBay sales could be subject to Capital Gains Tax rather than Income Tax. In most cases any item you sell valued below $1000 is not subject to taxes. Items over $1000 would be taxable IF the price you sell them for is greater than the price you originally paid to purchase the item.
If you are a "business" seller (a business seller is anyone who purchased items with the intent to resell) then you report your eBay sales using CRA Form T2125. On that form you report your Gross Revenue and then itemize all your eligible expenses (eBay fees, shipping costs, cost of goods etc. etc.). Your Gross does not include GST/HST/PST collected BY eBay.
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2125.html
If you plan to be a full time seller exclusively on Marketplaces like eBay (regardless of the expected volume unless it's VERY small) you should consider registering for GST. Registering would allow you to recover all the GST/HST you paid on eBay fees, shipping (within Canada), goods that you buy to resell and any other legitimate expenses. That would be a refund of 5 - 15% of those expenses (depending on where you are located) and worth the extra reporting (it's pretty simple). The greater your sales the more you can get in GST refunds.
recped
·2 months ago@what-does-your-watch-say
If you are NOT registered to collect GST/HST then you don't have to do anything.
If you are registered to collect GST/HST then you have to file your quarterly or annual reports but you do not need to report the GST/HST collected by eBay.