eBay

estreetplazacanada · ‎01-10-2013

Hello everyone, I wonder if anyone knows how to track sales tax from eBay sales?

I was using the outright accounting software to extract taxes, and it worked fine for me, but now it is no longer free, and I don't think that feature alone is worth $10 a month. I wonder if any Canadian power seller knows of a simple way to extract sales tax for reporting purposes, as I don't think going through transactions manually is efficient.

Thank you

Sam

cumos55 · ‎01-10-2013

I use several speadsheets where I keep track of sales separate from shipping... and other things such as purchases, supplies, postage paid, auto costs, as well as summary sheets where everything comes together.

I keep a running total... of the total and the sales tax associated with that total.

I sell both books and non-book items

Books are exempt from the provincial component of HST..

and many times some of the cost of shipping is within the price of the book... and in so doing I do reduce the amount of tax charged for a transaction....

It has taken me several years to develope a spreadsheet system that works..... but it works,,, and if needed I just add a new column or a table below a table.

Just added a breakdown of lettermail versus parcels.... Lettermail within Canada is GST only regardless of destination....

As the year progresses I have a running total of everything....

On January 1 of the next year I am ready for the tax man for the past year... and for sales tax calculation

and am ready for the next year....

fatdane · ‎01-10-2013

Wait for the audit from the Canada Revenue Agency. They will have a record of all the taxes that you collected on all your eBay sales.:-)

pierrelebel · ‎01-10-2013

Many of your items require you provide your buyers with an invoice outlining how much tax (GST/HST) was paid.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/itc-cti/nvc-eng.html

It would be easy to simply issue an invoice for ALL sales, including those outside Canada where the GST/HST rate is 0%.

Then, you simply add up the taxes charged on a regular basis (monthly, quarterly or annually).

The calculations can be made by whatever invoicing program you use or manually if you prefer. To reconcile 150 invoices a month would only take a few hours.