paying tax (GST/PST)

[tikazyg]

hello

just wondering how tax works with ebay?

i've always avoided the listings with "you'll be charged your provincial tax rate" because i don't know how that will work?

do i get a prompt after i order?  will the total + tax be my quote on my paypal? or will i have to try to figure it out, and somehow send extra?

i don't want to pay the $20 it asks for on paypal.. and find my item stalled because there was no option for the tax?

thanks ( sorry to post; it's such a stupid/easy question.. yet i can't find an answer how tax works)

[pierrelebel]

How does it work?

It depends on many factors.

If you buy from outside Canada, the tax levied by Canada Customs is generally collected by Canada Post at time of delivery (plus $9.95 handling fee).  If coming by courier, the fee may be substantially more.  Many American and British sellers use Global Shipping Program (GSP) where "import charges" including taxes and duty if applicable and service fee are shown in the listings and charged by PayPal separately.  Most Canadians generally avoid purchasing those items.

If buying from a Canadian seller, in most instances items sold by individuals are not taxed as the sellers are not registered with GST/HST to collect the tax. On the other hand many Canadian eBay sellers run a business and must remit GST/HST for sales delivered within Canada.  In such instances most of them will show the tax rate in their listings (under the shipping tab) or in their description.

[tikazyg]

thanks for the quick reply

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@pierrelebel wrote:

 On the other hand many Canadian eBay sellers run a business and must remit GST/HST for sales delivered within Canada.  In such instances most of them will show the tax rate in their listings (under the shipping tab) or in their description.

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-that's what i'm asking about..

say i win an item for $20  +tax.. now will paypal figure my tax charge too.. or how does that part work?  

usually i get prompted to pay now, and i pay the price that's listed.  but with taxes.. i don't know how that works. seeing there's different taxes for each province, i don't imagine paypal knows to add the tax automatically, or does it?

or does ebay automatically know to add taxes for the final price quote?

"CANADIAN PROVINCES ARE CHARGED LOCAL SALES TAX RATES."

so is that added into the final price quote?  

if i buy it now for $20, will my invoice say $22.60 (the $20 plus tax) or am i left trying to figure out how to pay the tax extra.

[pierrelebel · Accepted solution]

"now will paypal figure my tax charge too.."

The tax calculation is not done by PayPal but by the seller (or eBay if the seller uses eBay's tax table for listings on eBay.ca).

If the listing indicates tax (GST/HST/PST) will be added, wait for the invoice from the seller.

[tikazyg]

ok
thanks Pierre
🙂

[omplat0]

Hi, if a long-time seller has not put that any taxes will be charged for domestic orders, (no mention of taxes in listing at all) can he still charge taxes?

[reallynicestamps]

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