ahhh - why I sometimes looooove retail....

[hamsterstamps]

And all this for a $2.99 sale.  Almost makes it worth my time and effort.  I love the way "tax" is in italics - I love being called a cheat!

Question from seller:  

Dear hamsterstamps,
I do not see why something in BC would have "Ontario Sales tax" ? Can you provide me with your GST/HST registration number so I can verify with CRA if this "tax" is legitimate.

My answer:  

Certainly. My GST number is 895724946 and you may verify it at this site: http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/gsthstrgstry/menu-eng.html . Look under hamsterstamps as the business name, and for the date you can use anything in the past 5 years. As a Canadian, you probably realize that the GST is applicable to any transaction in Canada and helps pay for our ample Public Services. As a business, I am obligated to collect the GST for all sales within Canada. Because Ontario has a Harmonized Sales Tax (HST), I am obligated to collect that as well. If you don't want these items now because you must pay tax I will allow you to back out of your transaction without penalty.
Best regards,
George

One thing I did learn is that the tax table doesn't come up on the item description under shipping.  I assumed that it did as I have to input it there on all my listing - in future I guess a "GST collected on all sales" in bold letters in the body of listings would be a good idea.  If anyone at ebay is listening - surely it wouldn't be hard to add a "seller collects sales tax" line somewhere in the description???

Cheers all!

[hamsterstamps]

and what are the odds I get a negative feedback from this guy?

[cumos55]

As a GST/HST Registrant....

(1) At end of each listing there is a statement applicable to Canadian residents.....indicating that GST/HST is collected on all sales...  (I live in Manitoba, and also include PST in this statement.... Manitoba buyers only)

(2) My registration number is on all invoices,  and the HST rate is indicated for each province, as well as GST Provinces.

IF I ship to a GST province  that rate is GST = 5 %

If I ship to BC, ON, NB, NL or NS  I charge the appropriate level of HST for each province

Your buyer states you charged Ontario HST = 13 %  for a BC sale  where HST = 12 %.... 

Is that correct?

If a buyer lives in BC I charge HST = 12 %....   even though I live in Manitoba where GST is applicable...

Things will change as of April 1, 2013.

BC goes from HST = 12 % back to GST = 5%

PEI goes from GST = 5 %  to HST = 14 % ( if I remember the 14 % correctly)

Canada Revenue Agency has the appropriate rule for everything.

I sell books... Point of sale rebates apply....  exempt from the provincial component of HST, and HST = GST = 5 %

Postage  and GST/HST is based on the destination province  except for lettermail which is GST = 5 % for all of Canada...  Based on Canada Post rules  and the receipts received from Canada Post.

.

[pierrelebel]

This is an interesting case.

The buyer is in Ontario and you sell postage stamps from BC.

Until a few years ago when HST came along in Ontario, buyers paid GST and PST on postage stamps (mint or used) purchased for their stamp collections except they did not pay PST on mint postage stamps if they were purchased at or below face value.

Since HST came along a few years ago, all postage stamps are taxable at the HST rate, regardless whether mint or used, priced at, below or above face value. There is an important difference between purchasing postage stamps and postage (the service).  Postal service for shipments going outside Canada attracts 0% GST for transactions of $5.00 or more.

So it is quite possible that buyer still thinks of the "good old days" when postage (at or below face) was not taxable provincially.

In any case, your listings state " I do collect GST (like the Post Office)". 

It would be more appropriate to state " I do collect HST/GST (like the Post Office) "

That "GST" reference (insteafd of HST applicable in Ontario) may have been the source of the question.

[pierrelebel]

Cumos - "except for lettermail which is GST = 5 % for all of Canada... "

I guess you meant "except for lettermail which is HST based on the rate applicable in each province "

[pierrelebel]

By the way the rules about tax collecting (GST/HST) on postal services are rather complex:

http://www.canadapost.ca/cpo/mc/personal/productsservices/collectionofsalestax.jsf 

Cumos - I almost forget that MB has special rules where they do not charge HST on lettermail.

[cumos55]

It took me a while to sort out the Lettermail and GST  reality....

I finally found the information on the Canada Post website.... and the document indentifying postal rate increases for 2013

That was confirmed on all receipts received at the postal outlet.

The rule for commercial lettermail is as follows.

GST and QST if inducted in Quebec

HST if inducted in ON, BC, NB, NS and NL

GST only if inducted in the other provinces and territories....

inducted in relation to mail defines the province from which it was mailed...

It should also be noted that there is a difference as to how GST and HST are applied to

Consumer Regular Parcel   as opposed to

Commercial Expedited Parcel and Commercial Regular Parcel...

The rules are very specific... and do take a while to sort out.

[cumos55]

GST = 5 % is  applicable to consumer lettermail for all of Canada...  The rule is different for commercial lettermail

------------------------------------------------------------------------------------------

The factors that determine GST versus HST for postage

(1) Lettermail versus parcels

(2) consumer versus commercial mail.

(3) HST provinces as opposed to GST provinces and territories

(4) The province from which the item was mailed

(5) The destination province...

(6) Lower or higher than $5.00 if mailed to foreign destinations

A bit like trying to get through a mine field....

or

more specifically a mind field and not having your brain explode in the process....