Sales Tax on used items sold with in Canada
Summary: En la discusión, 33nhl comparte su confusión sobre la aplicación del impuesto a las ventas en artículos usados vendidos en Canadá a través de eBay, basado en lo que le dijo un representante de eBay en una exposición en Toronto. Varios participantes, incluidos mrdutch1001, femmefan1946, y brettjet38, explican que eBay y otras plataformas digitales, como Amazon y Etsy, están obligadas por las leyes canadienses sobre los ?1facilitadores de mercado?7 a recaudar impuestos sobre las ventas de bienes, nuevos o usados. 33nhl cuestiona por qué otras plataformas como Kijiji no cobran estos impuestos. Se sugiere que las reglas se aplican a cualquier plataforma que actúe como un intermediario de pagos, no solo a eBay, y que es un problema legislativo del gobierno, no de la empresa. La conversación también incluye referencias a legislaciones específicas de varios países sobre el impuesto al valor agregado (IVA) y quejas sobre la falta de claridad de eBay en su política de impuestos. reallynicestamps señala que el dinero recaudado por estos impuestos financia servicios públicos y sugiere quejas a los parlamentarios si hay desacuerdo con la legislación.
I dont know if this subjet has been discussed before or even chalenged.
Today i talked to an Ebay Rep at the Toronto Expo Show although they were from the USA was told that with in Ebay account if your account is not a business and you list items as used they techinicially should not be sales tax if the buyer is with in Canada, if the buyer is in a different country then different rules apply.
But i have noticed every single item i sell used or new the buyers with in Canada are paying sales tax.
Is this wrong???
I have looked into tax regulation for sales with in Cnaada and clearly states if items are personal items and not brand new then no sales tax should be applied when a buyer is from Canada. I even have asked a tax accountant regarding sales tax ruling and was told same thing, so why are buyers being charged sale tax, i think there has to be away when a person list an ithem and is used that no tax should be applied to upon sold.
reallynicestamps
·1 year agoBoycott eBay and any other place that charges tax whenever possible.
That includes the supermarket, the local dress shop, the barbershop, restaurants from A&W to Hy's Steakhouse, the gas station, the used car dealer, the independent bookseller, and the thrift store.
On the other hand those taxes pay for roads and schools, wildfire prevention and firefighters, the OPP and Surete Quebec who found that little girl by the highway, the coast guard protecting whale babies, the Arctic Rangers, food inspectors, teachers in isolated communities, and national parks.
reallynicestamps
·1 year agoThe booth bunny was wrong and you are wrong.
Sales tax is collected on used items every day.
Even in thrift stores.
While it is not necessary to register to collect GST until a seller is taking in $30,000 *annually (because it costs too much to process smaller amounts), eBay (and Amazon and etsy etc) sellers are covered by federal legislation which makes the venue collect and remit the appropriate sales taxes.
This legislation has been in force for a few years in Canada and even longer in the USA.
EBay not only collects and remits taxes for Canadian revenue departments, but for US state, county and municipal revenues, and for the UK and EU VAT and the Australian GST.
The legislation was brought in to protect Canadian small businesses which were being hurt by huge companies like Amazon which did not have to charge sales taxe to mail order companies.
But you are free to contact your Member of Parliament and tell them to get the law rescinded.
Member's Name
House of Commons
Wellington Street
OTTAWA KIA 0A6
Canada
*Which would be some $600,000 in sales for the GST to be required. Generous.
ilikehockeyjerseys
·1 year agoUsed vs new has no designation on whether sales tax should be charged. This is a misconception. There is no law in place that says goods are only taxed when new and can be sold untaxed used.
The need to charge taxes has to do with whether someone is engaged in business activities, and whether that business is considered a small supplier. The very simplified version is that a small supplier is a business that has done 30,000 or less in revenue over four consecutive quarters. Once a business exceeds that threshold, they are required to register to collect taxes on purchases. Keep in mind, that a single person can be a business, aka a sole proprietor.
Prior to July 2021, eBay sellers had the option to charge taxes based on their status as a business. Starting in July 2021, digital platform operators were required to charge and remit the appropriate taxes. Because of that, eBay charges and collects taxes on all domestic sales for Canadians regardless of whether the seller is registered to collect taxes. The only designation is that if the seller is also registered to collect taxes, they need to sign the appropriate paperwork that states eBay is collecting the taxes on their behalf.
The days of garage sale selling online are over with. Even if you sell personal goods at a loss, you should always keep documentation to support that in case you are ever audited. Things like e-transfers too, you should make the person write exactly what they are for "my share of our takeout from so and so on July 1".
(I am not an accountant, the above could be wrong and is not a substitute for professional legal/accounting advice. I know I don't technically have to put this disclaimer...)
marnotom!
·1 year agoIf you consigned your used item and the consignee was registered to collect and remit GST/HST/PST, the sale of your item would be subject to those taxes. Same if you donated it to Value Village.
Sales of used automobiles are also subject to taxes, and in many if not most provinces you can't licence your vehicle unless you've paid those taxes even if the sale is a private one.
If you sell your item on eBay other digital marketplace (@mrdutch1001 uses the American term "Marketplace Facilitator") in Canada where the marketplace acts as a payment intermediary, the marketplace is responsible for collecting and remitting the taxes due on the sale. The status of the seller as an individual or business is irrelevant.
Either there was a misunderstanding in the conversation you had with the eBay rep, or the rep was out to lunch. As Rick Mercer demonstrated decades ago, some Americans seem to like talking at length about things they know nothing about.
33nhl
OP1 year agoThis is why Ebay went managening the payments thus they could collect tax at every single item new or used, thus they would increase there profit margins at the same time, as they do make $$$ collecting all them sales tax for all countries that have requested. I think would be easy for Ebay to make changes to distinguish items as being NEW or USED but they dont wnat to do cause thye would loose $$$$ revenue and many would try to cheat the sytem by selecting as used item with in each listing mean while the item could be brand new.
But after speaking to the EBAY rep at the Expo show i am going to look into this matter very deeply as he told me each country has different laws thus Ebay Cnaada should be able to do that, just like in USA some states have no sales tax thus buyers dont pay sales tax on items they buy, unless they buy from an actual online business that has to collect tax for its province/state/country.
So if we are not a business and sell used items technically then should be no sales tax added to sales.
mrdutch1001
·1 year agoThe taxation process isn't about eBay>The taxation isn't unique to eBay....The Taxation applies to Marketplace Facillitators including eBay,Etsy, Amazon,etc...
"after speaking to the EBAY rep at the Expo show" > a USA rep who really knows nothing about Canadian law and/or Canadian taxation processes and is guessing it "could" work similar to the USA...
apparently this rep knows knows nothing about the application of taxes pertaining to Marketplace Facillitators..
"i am going to look into this matter very deeply" >Good Luck with that! and be sure to return to this forum with how successful you have been to find information that contradicts the taxation process pertaining to Marketplace Facillitators..
33nhl
OP1 year agoEbay messed up by wanting to be called ECOMMERCE thinking it compte with Amazon.
Ebay was never an Ecommerce but upon changing governments forced to collect tax, but since its still allows non business to sell items where it be via auction or not and the seller is average joe and is selling USED PERSONAL ITEMS and is in Cnada and buyer is in Canada there should be no sales tax as stated in tax law no personal items need be taxed upon sale.
If that is wrong then why then kijiji or facebook marketplace which are huge have no sales tax and some sell brand new items,
But again its all about $$$ collecting fees % making $$$$$ nothing more
mrdutch1001
·1 year agoBe aware that if Facebook Marketplace here in Canada were a Markeplace Facillitator like eBay, Amazon.Etsy,etc,etc, that had sales of "X"amount, there indeed would be taxation implemented on Facebook Marketplace, too. Check out the requirements for sellers on Facebook Marketplace for the USA....
marnotom!
·1 year agoI really don't understand some of the points you're attempting to make here. eBay messed up by somehow calling itself e-commerce? I don't follow your sense of history.
Kijiji and Facebook Marketplace are classified ad sites. These sites do not act as facilitators in sales, they merely advertise items posted by others. eBay is an e-commerce site because it acts as a facilitator or intermediary. Buyers and sellers have to go through the site to pay for items and arrange their shipment. They don't do this for a sale made through a classified ad site.
The reason why eBay has to charge, collect, and remit transaction taxes on a sale from a Canadian seller to a Canadian buyer is because it's registered to collect those taxes and federal law now dictates that it has to apply those taxes for sales made on its platform. It would be the same if you had a consignment store sell your item, as I mentioned many posts and months ago.
Generally speaking, once you involve another party in your sales, the rules involving the taxation of your sales change. If you don't like the idea of the sale of your goods being subject to transaction taxes on eBay, then sell them without eBay's help and complain to your Member of Parliament in the meantime.
ilikehockeyjerseys
·1 year agoeBay charging taxes is not directly eBay's choice. It has to do with Canadian law that took effect in July 2021. Every online platform made that change. Even if eBay did not institute the managed payments system, that change still would have happened.
It is my understanding that eBay would break the law if they did not charge taxes with all online sales. The same thing goes for Etsy, Amazon, etc.
I am not dictating how you should feel about the change in law, but you are placing the blame on the wrong party. It's a government issue. Write to your MP.
brettjet38
·1 year agoSales tax is a worldwide THING, almost...
https://www.globalvatcompliance.com/globalvatnews/world-countries-vat-rates-2020/
TAX on TAX on TAX on TAX makes the world go around, the world go around...
marnotom!
·1 year agobrettjet38
·1 year ago(Cut, Paste, Repeat as needed)
Then contact your local MP as it was your elected officials who put this in place, It has nothing to do with eBay...
If you already did not know & evidently you do NOT...
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 and many more shortly will.
And, yes it applies to USED GOODS sold through a "marketplace facilitator"
And the TAXES you are paying are based on the entire amount of the transaction you conducted on eBay, that's the Goods & Services bit...
This is the same thing I post every time I see this SALES TAX nonsense, the issue is not eBay it is YOU for not reading about what your government plans and not reading eBay policy about fees charged...
femmefan1946
·1 year agoAnd used items are still subject to sales taxes, since those tax the sale not the item.
Just as you paid sales tax when you bought that third hand Subaru.
This also applies to charities.
lotzofuniquegoodies
·1 year ago@femmefan1946
@33nhl
MCC Thrift in Calgary does not charge tax. Speaking to someone in Mb states similar with several of the thrift stores they deal with regularly.
MCCC is a registered charity within the meaning of the Income Tax Act (Canada) and is exempt from income taxes. ... MCC Thrift shops
We could try to go into how certain items are either tax exempt or are taxed at reduced rates but unfortunately we know how well that has not gone over. eBay just decided it was 1 size fits all...end of story. Technically most groceries in Canada are tax exempt and those too get sold on ebay. PST does not apply to childrens clothing in BC from a B&M store.
-Lotz
As a side this statement shows up as a Reddit post.
Even charities who sell things and where their sales exceed the GST/HST threshold, they must charge and submit taxes. They are exempt from paying taxes on their income. They pay HST on their purchases.Mar 4, 2023
lotzofuniquegoodies
·1 year agoAs per eSeller dated July 2022.
https://eseller365.com/ebay-canada-to-collect-sales-taxes-july-1-2022/
Re: Input tax credits. Was there EVER clarification on this from eBay directly for Canadians?
This appears similar to tax-exempt sales in the United States. eBay has a method to handle such sales in the United States but as of today, it’s unclear how eBay will handle that in Canada.
Official eBay follow up for situations like where regulations are about to kick in down the road seems to be a little lacking especially when it is requested by many multiple times.
femmefan1946
·1 year agoMCC Thrift in Calgary does not charge tax.
There is no provincial sales tax in Alberta.
The BC Salvation Army is charging BC provincial sales tax. (We do not have a harmonized sales tax.)
Neither organization shown is charging GST.
In 2022 there was still question about how these sales taxes would be implemented.
This was the clearest article I could find about the situation - note that the date is 2022.
https://www.bdo.ca/insights/canadian-sales-tax-online-sales
lotzofuniquegoodies
·1 year ago@femmefan1946
I just know there have been times AFTER something was announced or implemented sellers had asked repeatedly for followup clarification and it would never be responded to. I think for many that were considering claiming the tax they were left in a nightmarish quandry on how to move forward.
Re: that article you attached. No follow up for Canada from eBay. eBay left Canadian sellers on hold. Made even worse because the tax collection started in 2022. It's now end of 2024. Also it skips any mention of items that are exempt or at different rates. Guess it was just easier for eBay to go the all route.
Making sense of our sales tax patchwork
GST/HST was intended to be a national sales tax system that applies uniformly across the country. That is clearly not the case today. Despite the government's best intentions, businesses with customers in Canada face a variety of rates and rules based on jurisdiction. For online retailers who easily sell across provincial borders, this tax patchwork makes it even more important to remain up-to-date on sales tax changes across the country.
-Lotz
lotzofuniquegoodies
·1 year ago@femmefan1946
Here is the original info page from eBay 2022. I was able to locate using a google search. Unable to tell or know if revisions were ever made because help pages are not dated.
https://pages.ebay.ca/salestax2022/
Typing tax responsibilities or collecting sales tax in eBay help does not bring up the same page. When searching help what comes up is entirely a lottery with no guarantee of winning.
-Lotz
mrdutch1001
·1 year ago"should not be sales tax if the buyer is with in Canada,"
Whomever you talked to is Totally wrong!
Sales tax is applicable to Canadian buyers as per Canadian Law when pertaining to Marketplace Facillitators!
and BTW, Never trust what someone from the USA tells you about Canadian Taxation and/or Canadian laws!
eBay is a Marketplace Facillitator and as such is required by Canadian Law to collect taxes on goods sold on eBay, whether new or used, and whether for personal or business purposes.
BTW, is this "tax accountant" aware that eBay is a Marketplace Facillitator and actually knows the Laws as they pertain to Marketplace Facillitators?