Sales Tax, chinese sellers

Summary: medicaltrans2008 raises a concern about sales tax being added to purchases from Chinese sellers, noting that Canadian sellers cannot charge in U.S. funds unlike Chinese sellers. electronicifycanada clarifies that this is due to Canadian government regulations, not sellers' decisions. mrdutch1001 and reallynicestamps discuss how importing goods to Canada involves taxes, and the recent implementation of collecting taxes on online purchases. pjcdn2005 explains that eBay collects taxes for Canadian sellers, and that Chinese sellers list on U.S. sites like ebay.com. marnotom! uses this as an opportunity to highlight how sales taxes are collected globally, and brettjet38 outlines the policies eBay has regarding tax collection in Canada and how they are applied to purchases from international sites.

Since when has sales tax been added.

Chinese sellers do not charge additional taxes? chinese sellers are allowed to charge USA funds, Canadians are not.

medicaltrans2008

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Posted 3 years ago·Last reply 3 years ago

6 comments

brettjet38

·3 years ago

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Evidently, you are a little late to the party and do not keep up to date on the site policy of the site you use...

4 mins article

Paying tax on eBay purchases

Many countries and jurisdictions around the world apply some type of tax on consumer purchases, including items bought on eBay. Whether the tax is included in the listing price, added at checkout, charged at the border, or paid directly by the buyer depends on the seller's status, the order price, the item's location, and your shipping address.

Effective July 1, 2022, for all sales of tangible goods sold within Canada, eBay will be collecting the Canadian sales taxes (GST/HST/QST/ PST) from Canada-based buyers on behalf of Canada-based sellers (irrespective of registration status) and remitting the tax to the appropriate tax authorities.

Items delivered to a Canadian address

Some items are subject to duties and/or GST when imported into Canada from the United States or from other countries. Whether or not duty and tax is applicable is dependent on a variety of factors, including item type, value, and the country where it was manufactured or produced. Sellers have no control over this, and as the rules are quite complex, will often not be able to tell you whether or not duty will apply to the item they are selling. It is the buyer's responsibility to ensure the item can be legally imported into Canada, and, unless arrangements have been made to the contrary in advance, to pay any taxes and duties that might be assessed at the border.

The manner in which duties and taxes are collected varies:

If your item is shipped by mail, you'll need to pay your letter carrier or the post office before your item will be released to you.
If your item is shipped by courier, you'll need to pay the courier company directly, or you might be invoiced by a customs broker.
If your item is shipped by truck, you will be invoiced by a customs broker, or by the trucking company directly.
If your item arrives by courier or truck which has a working relationship with a customs broker, you will typically be invoiced after your item arrives. Otherwise, duties and taxes on your item will be treated as COD by the courier or trucking company.
Accepted payment methods will vary.
Depending on where you live, you may be required to pay sales taxes directly to the government.

For more information about importing goods into Canada, visit the Canada Border Services Agency Website which has extensive sections on importing and exporting.

https://www.ebay.ca/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&st=3&pos=1&query=Paying%20tax%20on%20eBay%20purchases&intent=sales%20tax&lucenceai=lucenceai&docId=HELP1425

marnotom!

·3 years ago

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Fun fact for the OP: Most Americans have to pay state (and even local) sales taxes at Checkout when buying from Chinese eBay sellers (or any other nationality, for that matter). Same goes for buyers in many other countries. Canada will likely move to this method of collecting taxes from online sales eventually, instead of relying on customs to do it.

pjcdn2005

·3 years ago

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As others have mentioned, the Canadian government requires ebay to collect taxes when a Canadian buyer purchases from a Canadian seller.

Most Chinese sellers list on ebay.com which is a US site. Anyone is allowed to sell in US funds but they have to list on .com. Sellers who list on other sites have to list using the local currency of that site.

reallynicestamps

·3 years ago

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We are charged duty and sales taxes on items over $20 Cdn.

In some cases the seller covers those charges, since his other costs are minimal.

The exception is goods imported under the new NAFTA (CUSMA) which are duty -free under $150Cdn and tax -free under $40 Cdn.

Note that Canada Post and CBSA noticed some years ago that it would cost more for them to assess and collect import fees on low value imports, and just stopped doing it.

A Canada Post vice president said that about 93% of low value (less than $100) imports were ignored by CBSA.

Couriers like UPS couldn't do that. Nor could the GSP, which is run by Pitney Bowes.

The result is that many Canadians never paid any import fee on low value purchases.

However, the long dreaded "internet sales tax" (really just provincial sales taxes+GST) was brought in last year.

You can write your MP at:

MP's Name

House of Commons

Ottawa, ON

K1A 0A6

You don't even have to put a stamp on the envelope. Just mark it OHMS, which is the free franking privilege for MPs communication with voters.

mrdutch1001

·3 years ago

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importing goods to Canada from other countries is subject to taxation and especially so now that online Marketplace Facillitators are required to collect applicable taxes.

electronicifycanada

·3 years ago

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It's not up to the seller or eBay, it's up to our Canadian government.