Canadian sellers to be charged GST/HST/QST on all fees effective July 1 2017?
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05-09-2017 02:15 PM - edited 05-09-2017 02:17 PM
As part of the Summer 2017 update, eBay has announced the following. You will see all updates in the email they are sending.
Today, eBay announced changes that will impact Canadian residents and businesses who use eBay.
To better reflect how we manage and operate our platform in Canada, on July 1st, 2017 we will be changing the contracting party for Canadian residents and businesses from eBay International AG to eBay Canada Limited, a Canadian corporation.
As a result, eBay users residing in Canada will begin contracting with eBay Canada Limited. This change will impact these users' User Agreement, User Privacy Notice, Billing Agreement, and other agreements with eBay.
The new contracting entity, eBay Canada Limited, is subject to Canadian tax law. As a result, sales tax (GST/HST/QST) will be charged on eBay fees starting July 1st, 2017. The applicable sales tax rate will vary by province, which we will determined based on your registered eBay address. You should confirm that your registered address is correct. The current applicable tax rates are:
Province | Rate |
Alberta (AB): | 5.00% |
British Columbia (BC): | 5.00% |
Manitoba (MB): | 5.00% |
New Brunswick (NB): | 15.00% |
Newfoundland and Labrador (NL): | 15.00% |
Northwest Territories (NT): | 5.00% |
Nova Scotia (NS): | 15.00% |
Nunavut (NU): | 5.00% |
Ontario (ON): | 13.00% |
Prince Edward Island (PE): | 15.00% |
Quebec (QC): | 14.75% |
Saskatchewan (SK): | 5.00% |
Yukon (YT): | 5.00% |
While the addition of GST/HST/QST on fees is new, eBay's prices will not change as a results of this legal entity change. Furthermore, you should see no interruption in your service as a result of this change, and you will not need to make any updates to your listings.
If you are a business user, we recommend that you consult with your tax advisor to understand your eligibility and the process for claiming an input tax credit on tax paid for services provided to your business.
Re: Canadian sellers to be charged GST/HST/QST on all fees effective July 1 2017?
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06-23-2017 12:17 PM
rose-dee "...this may be an important point for Canadians who have a large personal collection to sell on eBay (or elsewhere), "
You are correct. In general terms sale of used low value personal property does not attract taxation but there are exceptions where, for example, a $1,000+ sale of a collectible sold at profit may attract capital gain.
I am not aware of a $3,000 limit.
In case of doubt Canadian should consult a compete t tax accountant or contact CRA for more information and Guide T4037 Capital Gains.
http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P941_72799
"When you dispose of personal-use property that has an ACB or proceeds of disposition of more than $1,000, you may have a capital gain or loss. You have to report any capital gain from disposing of personal-use property. However, if you have a capital loss, you usually cannot deduct that loss when you calculate your income for the year. In addition, you cannot use the loss to decrease capital gains on other personal-use property. This is because if a property depreciates through personal use, the resulting loss on its disposition is a personal expense."
This is a complex issue that cannot be properly handled in a post on this board.

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06-23-2017 04:44 PM
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06-23-2017 04:50 PM - edited 06-23-2017 04:51 PM
"eBay is charging the seller tax on the sales fee that eBay makes from us?"
NO, NO, NO.
Once again eBay is NOT charging tax.
The Canadian government is. The Canadian government decides what is and what is not GST/HST taxable. They have decided that eBay fees charged to sellers are now GST/HST taxable. As such eBay is obligated by law to collect the GST/HST on behalf of the government and remit it to them.

Re: Canadian sellers to be charged GST/HST/QST on all fees effective July 1 2017?
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06-23-2017 04:54 PM
Re: Canadian sellers to be charged GST/HST/QST on all fees effective July 1 2017?
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06-23-2017 04:56 PM
Its not that much different than paying for any other service. eBay charges sellers a fee and the government charges the person receiving the service a tax. When you get your hair cut the stylist charges you a fee to do so and the government taxes that fee. The stylist is making a profit from the fees she charges and she pays income tax on that, she doesn't pay for the gst/hst that you are charged. I don't know how ebay's income tax is set up but they definitely aren't responsible for paying the customers tax on sales and goods and services.
Re: Canadian sellers to be charged GST/HST/QST on all fees effective July 1 2017?
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06-23-2017 05:01 PM
Re: Canadian sellers to be charged GST/HST/QST on all fees effective July 1 2017?
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06-23-2017 06:56 PM
bomackinno0 - "In my mind, that should be eBay paying that bill."
Another way to look at it is to blame former Prime Minister Brian Mulroney for that. Seriously.
Back in 1988-1989 when the concept of GST was investigated and analyzed to replace the old FST or Manufacturers Sales Tax, the original plan proposed by the Canadian Tax Foundation was to make the new tax invisible as it is in the United Kingdom and Europe (VAT). I know as I was sitting in those small business panels organized by the Tax Foundation at the time.
GST was a good measure meant to help Canadian manufacturers against importers who had a huge edge - tax wise.
However when the time came to implement the GST, Mulroney made the political decision to make the tax visible instead of hidden in the price of the goods or services (in my book that was a mistake). At first, retailers were given the choice to include the tax in the price of show it separately at the cash register. Some of you may remember those 7% extra or 7% included signs at the checkout.
So, if the government at the time had followed in the concept of a hidden tax, businesses today would include the tax in the price of their goods or services and remit the tax while consumers would never see that 7% (GST rate at the time) added to the bill.
Oh well, that was then, this is now. There is no turning back. We are stuck with its visibility.
And life does go on.

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06-23-2017 07:00 PM - edited 06-23-2017 07:05 PM
Selling items at an auction ... and the application of GST/HST
The auctioneer collects GST/HST on the final price paid by a buyer.
The auctioneer does not charge GST/HST on the commission or on the amount received by the owner/consignor of the items sold.
Why? ......................................>>>>
Because the buyer has already paid the full amount of GST/HST on the total of Commission plus amount received by the consignor.
These are the CRA rules as they apply to auctions.... whether on eBay or at a local auction, if items are sold on consignment
Re: Canadian sellers to be charged GST/HST/QST on all fees effective July 1 2017?
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06-23-2017 10:07 PM
What would happen if we changed our registered address to a US address as that is the address that determines whether you pay tax on the fees?
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06-24-2017 01:11 AM
Everyone seems to be fixated on how we are being taxed. Not that difficult.
There are already skinny margins with eBay and the global market. Now with these "minimal" tax additions, eBay is just trying to get water from a desert.
I'll close my shop.
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06-24-2017 02:26 AM
@true-blue wrote:
eBay is just trying to get water from a desert.
I'll close my shop.
Ebay doesn't get a dime from this. In fact it just adds administrative overhead.
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06-24-2017 02:27 AM
@dutchman48 wrote:What would happen if we changed our registered address to a US address as that is the address that determines whether you pay tax on the fees?
Then you would have the IRS hounding you instead, depending on sales revenues.
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06-24-2017 06:19 AM
true-blue - " eBay is just trying to get water from a desert."
One more time, eBay does NOT tax you, the Canadian government does.
If you want to complain to someone, contact your Member of Parliament.

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06-24-2017 08:21 AM
Not enough sales, already have 2 addresses, bank account, Paypal account, and US Ebay account if needed and W-8Ben has already been filed where needed.
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06-24-2017 02:15 PM - edited 06-24-2017 02:16 PM
Success in a business is knowing what NOT to do
And.. this starts with knowing what not to sell...
Everyone can make a profit... but the real question is how much profit.
Selling low priced items may not work too well on eBay.
-------------------------------------
I have also seen a situation where a seller had everything priced at over $100 ... and then they complain about a lack of sales.
The answer is... Low priced items pay the bills... High priced items make the profit......and at certain times people may choose not to buy higher priced items
-----------------------------------s
Then comes the seller that starts on eBay with new unique inventory... Sales are very good and then things slow down..... Why? Their inventory has filled a niche of buyers and there are less buyers looking for what they sell.
The answer to this problem is to find new inventory that is complementary to that first group of inventory Also one must add new and different inventory on a continuous basis
--------------------------------------------------------
A seller has to work the inventory on eBay... always add new inventory and find new items to sell, also new unique inventory, and then new items in new, but complementary categories.
This I know from personal experience...... This is the business of selling.......
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06-24-2017 03:22 PM
As I have stated before, I am selling off my collection. I don't buy inventory to resell. Once collections are gone, so am I, and possibly sooner.
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06-24-2017 04:39 PM
Um... so why now... ?? eBay.ca has been around for a long time... Did the government just catch up to them or what?
So, more fees; yeah, I get it. If you list on .com and get billed on .com in USD, are you still going to be paying tax on your fees?
It's bad enough they charge fees on shipping so I have to hike the cost. Now, being in a 15% zone, I'll have to account for that too...
Sorry if these questions have been asked & answered already... there are 8 pages of discussion here...
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06-24-2017 04:59 PM
Because we were billed through Switzerland before.
As of July 1st, we will be billed by Canada so now tax on the Ebay fees become owing according to our government.
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06-24-2017 05:06 PM
' Now, being in a 15% zone, I'll have to account for that too."
Nobody likes to pay taxes. Based on your sales of the last three months, if GST/HST had been charged on eBay fees during that period, it would have cost you an extra $1.20 a month on average. It is not good but we all have to pay taxes one way or the other.

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06-24-2017 05:10 PM
@pierrelebel wrote:
Nobody likes to pay taxes. Based on your sales of the last three months, if GST/HST had been charged on eBay fees during that period, it would have cost you an extra $1.20 a month on average.
Creeper, LOL.
Probably would have sold more if shipping didn't cost so much. Not worth listing 😛
