"My question though is how to go about collecting when listing on eBay.com?"
I do not. As stated in my eABay listings (on .com), I absorb Canadian consumption taxes for shipment to Canadian residents. Since over 90% of my sales are overseas and to the USA, my GST liability affects only about 6% to 8% of my sales. It works out to about 0.35% (that is zero point thirty-five percent) of my overall sales. NO BIG DEAL.
The overall marketing value of absorbing taxes for Canadian buyers is worth more than my cost, once I consider the time savings.
I noticed many other GST registered Canadian sellers absorb consumption taxes to compete with unregistered sellers.
For bookkeeping, I believe in KISS. I use schedules on MS-EXCEL outlining sales, expenses, purchases. All are entered and calculated in the currency of the transactions. Once a year, at tax reporting time, I convert US$ totals into Cdn$ totals using the average conversion suggested by the Bank of Canada website (US$1.00 = Cdn$ 1.0660 in 2008). I may lose or gain a few dollars - I do not know nor care - well worth the time savings to average everything over a one year period.
I do not. As stated in my eABay listings (on .com), I absorb Canadian consumption taxes for shipment to Canadian residents. Since over 90% of my sales are overseas and to the USA, my GST liability affects only about 6% to 8% of my sales. It works out to about 0.35% (that is zero point thirty-five percent) of my overall sales. NO BIG DEAL.
The overall marketing value of absorbing taxes for Canadian buyers is worth more than my cost, once I consider the time savings.
I noticed many other GST registered Canadian sellers absorb consumption taxes to compete with unregistered sellers.
For bookkeeping, I believe in KISS. I use schedules on MS-EXCEL outlining sales, expenses, purchases. All are entered and calculated in the currency of the transactions. Once a year, at tax reporting time, I convert US$ totals into Cdn$ totals using the average conversion suggested by the Bank of Canada website (US$1.00 = Cdn$ 1.0660 in 2008). I may lose or gain a few dollars - I do not know nor care - well worth the time savings to average everything over a one year period.
Seller's payment instructions
Your payment within ten days will be appreciated. I always leave positive feedback upon receipt of payment. Please combine all your purchases in ONE payment to SAVE on shipping charge. Insurance is $1.00 per shipment if required. My mailing address is Pierre J LeBel, PO Box 23075, Belleville, ON, Canada, K8P 5J3. Optional Registration is $12.00 (USA and overseas); $7.00 (within Canada). Canadian Residents please note: NO GST/PST (I absorb both if applicable).
Your payment within ten days will be appreciated. I always leave positive feedback upon receipt of payment. Please combine all your purchases in ONE payment to SAVE on shipping charge. Insurance is $1.00 per shipment if required. My mailing address is Pierre J LeBel, PO Box 23075, Belleville, ON, Canada, K8P 5J3. Optional Registration is $12.00 (USA and overseas); $7.00 (within Canada). Canadian Residents please note: NO GST/PST (I absorb both if applicable).
Information about the Quick Accounting method of remitting GST can be found at this http://www.cra-arc.gc.ca/E/pub/gp/rc4058/rc4058-e.html#P225_18783
However, I do NOT recommend Canadian eBay sellers using it if a large portion of your sales is exported (USA or overseas) as you lose your ITCs.
However, I do NOT recommend Canadian eBay sellers using it if a large portion of your sales is exported (USA or overseas) as you lose your ITCs.
"My spreadsheets get so unwieldy though so quickly. I try to combine inventory into them "
KISS
"you'd post copies of your wonderful Excel spreadsheets "
Each business has different needs. KISS. I do not try to combine anything on any one spreadsheet other than my final P&L Statement where all the relevant numbers from my many schedules are incorporated.
A sample P&L statement can be found at this http://www.pierrelebel.com/lists/P&L-sample.htm
For revenue (sales), since I sell in both Cdn$ and US$, I use a spreadsheet with many columns as follows;
- sales in US$ to customers outside canada (zero rated)
- sales in US$ to customers in NS, NL and NB (13% HST)
- sales in US$ to customers in the rest of Canada (5% GST)
- sales in Cdn$ to customers outside canada (zero rated)
- sales in Cdn$ to customers in NS, NL and NB (13% HST)
- sales in Cdn$ to customers in the rest of Canada (5% GST)
It does not matter if you record your sales daily, weekly or monthly. At the end, you simply add up each column, convert the US$ into Cdn$ and you're done! The information can now be used for your GST/HST return.
For expenses, I use several schedules (as outlined on the P&L). Once again, I use different columns for US$, Cdn$, GST paid - converting US$ into Cdn$ at the end of the process.
For purchases, one schedule, again using different columns for US$, Cdn$ and GST paid - converting US$ into Cdn$ at the end of the process.
With the information oulined in the schedules above, you are now ready to move to your P&L and GST/HST return.
It should be noted I do not let PayPal convert US$ into Cdn$ for me. I withdraw US$ into my US$ bank account, avoiding paying PayPal conversion fee.
KISS
"you'd post copies of your wonderful Excel spreadsheets "
Each business has different needs. KISS. I do not try to combine anything on any one spreadsheet other than my final P&L Statement where all the relevant numbers from my many schedules are incorporated.
A sample P&L statement can be found at this http://www.pierrelebel.com/lists/P&L-sample.htm
For revenue (sales), since I sell in both Cdn$ and US$, I use a spreadsheet with many columns as follows;
- sales in US$ to customers outside canada (zero rated)
- sales in US$ to customers in NS, NL and NB (13% HST)
- sales in US$ to customers in the rest of Canada (5% GST)
- sales in Cdn$ to customers outside canada (zero rated)
- sales in Cdn$ to customers in NS, NL and NB (13% HST)
- sales in Cdn$ to customers in the rest of Canada (5% GST)
It does not matter if you record your sales daily, weekly or monthly. At the end, you simply add up each column, convert the US$ into Cdn$ and you're done! The information can now be used for your GST/HST return.
For expenses, I use several schedules (as outlined on the P&L). Once again, I use different columns for US$, Cdn$, GST paid - converting US$ into Cdn$ at the end of the process.
For purchases, one schedule, again using different columns for US$, Cdn$ and GST paid - converting US$ into Cdn$ at the end of the process.
With the information oulined in the schedules above, you are now ready to move to your P&L and GST/HST return.
It should be noted I do not let PayPal convert US$ into Cdn$ for me. I withdraw US$ into my US$ bank account, avoiding paying PayPal conversion fee.
"Do you have a US$ account in the USA or a US $ account in Canada?"
BOTH.
I have a US dollar account at a bank in the USA to allow withdrawals from PayPal in US$ (PayPal does not allow withdrawals in US$ to a Canadian bank).
I also have a US dollar denominated account at a local bank (BMO) to deposit US$ checks, money orders and US$ banknotes.
BOTH.
I have a US dollar account at a bank in the USA to allow withdrawals from PayPal in US$ (PayPal does not allow withdrawals in US$ to a Canadian bank).
I also have a US dollar denominated account at a local bank (BMO) to deposit US$ checks, money orders and US$ banknotes.
