Buyers switching addresses

[3jcc14]

Have any of you run into buyers winning items - when you invoice them, they have a USA Address but when they pay in Paypal, they've switched to a Canadian Address. The problem with that for me is I collect GST and PST when applicable and one customer bought about $100.00 worth of goods with a Niagara Falls NY address (tax exempt because it was going to the USA) but when he paid, the paypal address was in Niagara Falls ON - meaning he skipped out on 13% GST/PST which I'll have to "eat" unless I invoice him for the balance which will probably anger him resulting in poor DSR ratings. Any suggestions?

[recped]

You already know the two possible choices.....If I'm shipping to a Canadian address the buyer is paying the taxes, if they don't they don't get their item.

[gifts_of_elegance]

This is one of those "no win" situations that I have encountered in the past. I told the buyer that either I ship to the USA address thats on his registration or he pays the taxes. If he doesn't agree to either one, refund his money and report it to eBay. People who are so devious are full of other surprises too and you don't need their business.

[recped]

This is one of those "no win" situations that I have encountered in the past.

I've never "lost" in this type of situation. Buyer either pays the taxes, accepts shipping to the address outside Canada or gets a non-payment strike.

[gifts_of_elegance]

recoed: And the purchaser with the non=payment strike proceeds to give you a Negative.

Did that never happen to you?

[recped]

It's happened once or twice, last one was about 5 years ago.

I've probably given out in excess of 500 strikes, maybe had 3 or 4 negs as a result.

[dipmicro]

So it seems that taxes are collected based on the "shipping address", regardless if the buyer is resident or not.

Acording to this:

http://blog.9thsphere.com/blog/are-you-billing-gst-correctly-on-internet-sales

[recped]

So it seems that taxes are collected based on the "shipping address"

That is correct.

[dipmicro]

Recped, even PST is based on shipping address not billing one?

[recped]

Yes!

At least in Ontario and I'm pretty sure all provinces are the same on this aspect.

http://www.rev.gov.on.ca/english/taxes/rst/faq_exemption.html#8973

Do I charge RST on goods delivered or shipped to a location outside Ontario?

No. RST does not apply to goods that you ship directly to, or arrange delivery of, a location outside Ontario. You should retain all shipping documents and/or bills of lading to support the exempt sale. If the customer takes delivery of the goods in Ontario, then you must charge RST.

[3jcc14]

Thanks for the input everyone.