Canadian buyer Paying HST tax to Ebay on U.S purchase.

[mrdutch1001]

Many sellers do not USPS for shipping, they use eBay's International shipping program whereby goods are sent by other carriers.  Fact is, New or Used,( and calculating in the value of the item, the category of the item and checking of goods crossing the border into Canada from the USA > that's what Customs and Border Agents do), Goods imported to Canada from the USA are subject to GST/HST depending on province of the purchaser.

[reallynicestamps]

Under the current NAFTA **treaty,  wehave a duty free allowance on imports  from the USA of $150Cdn.

But our tax-free allowance is only $40.

Time for History.

Until that treaty, Canadians paid duty and tax (mostly tax)on imports valued over $20 Cdn.

But CBSA decided, slightly illegally, that it was more expensive to assess and collect import fees on goods under a much lower ceiling (about $100 Cdn), so if they were handling it which happens when goods are shipped through the postal system, CBSA just ignored them. According to a Canada Post vice-president, about 93% of those low value items were ignored.

But that did not apply to couriers like UPS,FedEx, and the Global Shipping Program eBay ran.

And there are archived threads complaining about that over 5000 posts long.

More History.

EBay is now required as a Marketplace Facilitator to collect and remit Canadian* sales taxes at point of sale. This is also true of Amazon, WalMart, etsy, etc who allow resellers to use their platforms.

The long concern about "internet sales taxes" is over, because governments figured out how to charge those taxes.

*And US and UK and EU and Australian , probably more
** There's also something similar with CERN, which handles free trade with the European Union.

[brettjet38]

You will pay TAXES no matter where you purchase your items from...

As the buyer, you should be aware of possible:

• Delays from customs inspection.

• Import duties and taxes which buyers must pay.

• Brokerage fees.

Fees payable at the point of delivery.

Your country's customs office can offer more details, or visit eBay's page on international trade.

3 min article

International purchases and shipping for buyers

When purchasing from an international seller, keep in mind that shipping can sometimes take longer and cost more than buying from a seller in your own country. If you have any questions about shipping, contact the seller before you go to checkout.

Customs and import charges

As a buyer, it’s your responsibility to check which customs and import charges may apply, and to pay them. Your seller might be able to give you some information about import charges, but before you bid on, or buy an item, it's a good idea to check with your country's customs office for more specific details.

Import charges include

• Sales, goods, and services
• Value added taxes
• Duties
• Tariffs
• Excise taxes
• Other amounts assessed or levied by any government authority in connection with the importation of goods into the applicable country of importation
• Third party brokerage fees (including advancement and disbursement charges as well as customs brokers’ handling and filing fees)
• Penalties
• Classification charges associated with the assignment of a Harmonized System (HS) classification code
• Charges for export compliance screening and verification and the assignment of an Export Control Classification Number (ECCN)
• Charges relating to the management of variances between the quoted import charges and actual costs

Import charges are in addition to the customs duties and taxes imposed by country tax and customs officials.

https://www.ebay.ca/help/buying/postage-delivery/changing-delivery-address-method/international-purc...

And internet sales taxes were announced in the 2021 Canadian Budget so if you have an issue with TAXES contact your local MP...

[mce_1732]

 The cost of Shipping and the GSP was costly enough. Like I said I have never payed the 15 percent tax on laptops from the US. I'm guessing 100-150 laptops all shipped by USPS to Canada. Taxes were nil.

[mce_1732 · Accepted solution]

 Time to find a different hobby I guess.

[mce_1732]

 Never payed HST on any used laptops. The CBA agents just let them go through. Couriers collect tax not CBA unless it's a very expensive purchase, like the $4000 control module for a tree harvestor I bought for my son, I did pay HST on that one.

[mce_1732]

 The last couple of months the GSP no longer shows seperately in the price. And a lot of changed to courier. I know what I see, I look at dozens of laptops every day trying to find decent shipping costs.

[mce_1732]

I guess because I used to see border agents 2 times every day hauling lumber they have given me a break lol. Anyway, if I'm going to be charged Shipping plus GSP plus HST I'll be finding another hobby. 

[mce_1732]

 I'd really prefer an answer about what's going on the last few months and not just copy and paste. Why has Ebay switched from USPS to couriers in the last 2-3 months, why is the GSP charge not shown seperately on items for sale like they used to, why has Canada customs let my $700 dollar laptop lot go through without collecting HST?. I (DON'T) pay taxes on every order, I have never paid taxes on US purchases until couriers got involved.

[avidhiker-33]

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@mce_1732 wrote:

 The cost of Shipping and the GSP was costly enough. Like I said I have never payed the 15 percent tax on laptops from the US. I'm guessing 100-150 laptops all shipped by USPS to Canada. Taxes were nil.

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@mce_1732   I suspect Canada Post has some threshold below which they do not collect sales taxes on goods mailed from outside of Canada.

Prior to the federal Marketplace Facilitator legislation taking effect the only times I've been assessed sales taxes on out-of-country purchases is when a seller shipped via UP$ instead of via USPS as requested.

When the federal legislation took effect July 1, 2021 Amazon had processes in place to collect sales taxes.  Since then they've collected and (hopefully) remitted the 5% MST on the few purchases I've made from their US sellers.

Ebay was granted a 1-year extension to July 1, 2022.  Since then I haven't made any purchases from out-of-country Ebay sellers but if I do I'm expecting Ebay will collect sales taxes on the total value of the order (including shipping).

[mce_1732]

 But from Ebays warehouse in Kentucky they were handed over to USPS. I know what you mean I'm sure most sellers shipped to Kentucky via courier though. Anyway, I've decided today to find something else to do with my time. It's their loss, I've been an excellent buyer. Paid for items within 2 minutes after the auctions. I'm not sure if my wife will like having diesel engines I'm rebuilding in the living room though:)

[marnotom!]

The GSP is being phased out and replaced by a new forwarding program that's boringly-titled "eBay International Shipping" (eIS).  Right now, eIS is a bit of a mixed bag when it comes to charging and collecting taxes.  From what I can see, taxes are sometimes charged at checkout, but usually they're charged at the time of delivery.  I think the manner of charging/collecting tax may depend on the value of the item, but don't quote me on that.

My understanding of the workings of the GSP are a bit different from yours, @mce_1732.  After GSP-forwarded items bound for Canada were handled at the Global Shipping Center in Kentucky, they were trucked off as freight to Mississauga or some other point close to the border.  Some of them got picked up by Canada Post after that, but a lot of those bound for urban centres were handled by second-tier carriers.  However, as taxes were already paid on the item by Pitney Bowes (and repaid to Pitney Bowes by the buyer as part of the GSP "import charges"), the recipients of these couriered shipments didn't have to pay anything upon delivery.

From what I've seen so far, eIS works more like a mail consolidator/forwarder.  (The GSP was more of a freight forwarder.)  The mail system generally collects taxes and duties on delivery, so the courier that takes these packages up to Canada to be handled by Canada Post(?)  creates the bill for the GST/HST and other customs-related charges and makes Canada Post do the dirty work of collecting the those fees on its behalf.

My wife makes quite a lot of online purchases from US vendors.  I can't think of one that's shipped directly through the postal system; most of them seem to use a forwarding/consolidation service along the same lines as the GSP and eIS.  The difference seems to be that she's charged taxes at the time she makes the purchase.

[marnotom!]

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@avidhiker-33 wrote:

 I suspect Canada Post has some threshold below which they do not collect sales taxes on goods mailed from outside of Canada.

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Nitpicking time:  Canada Post may collect the taxes/duties due on a postal import, but they're doing it on Canada Border Services' behalf.  CBSA is the entity responsible for inspecting, assessing and charging any taxes/duties due on a postal import.

The official thresholds for the collection of taxes and duties for "casual imports" by mail or courier are $40 for taxes, $150 for duties for anything shipped from the United States or Mexico by courier.  The limits are $20 for taxes and duty for pretty much everything else from anywhere else shipped by mail or courier.  Note that I said "official thresholds."  CBSA tends to let a lot slide through.  As another regular poster points out, it costs too much in labour and time to assess every single item that goes through customs, particularly low-value ones.

[femmefan1946]

Why has Ebay switched from USPS to couriers in the last 2-3 months,

EBay hasn't.

The seller chooses how to ship. Some use USPS directly. Some use FedEx. Some used the GSP.

The GSP was sub-contracted to Pitney Bowes, which in turn sub-contracted last mile delivery to various shippers, including Canada Post and dozens of small delivery companies, like CanPar.

It is possible that the contracts negotiated by PB with those companies, gave PB better rates than Canada Post.

why is the GSP charge not shown seperately on items for sale like they used to,

As I recall, the GSP charges which included import fees were sometimes included in shipping,  making shipping look very expensive.

This led to a lot of complaints, so GSP sometimes separated actual shipping from those import fees.

But "sometimes" is the important word.

why has Canada customs let my $700 dollar laptop lot go through without collecting HST?.

Luck of the draw.

CBSA was ignoring most (93%) low value and low bulk shipments, on the sensible basis that it would cost the taxpayer more to assess and collect duty and sales taxes on those items than could possibly be collected.

And occasionally they would miss an item.

Also, as a Marketplace Facilitator,  eBay, since July 2022, been required to collect Canadian sales taxes, so you may have paid those taxes when you purchased, and no further tax collection is needed.

Also CBSA only ignored POSTAL shipments, while couriers, who handle their own customs brokerage, are required to assess*, collect, and remit Canadian sales taxes.

I (DON'T) pay taxes on every order, I have never paid taxes on US purchases until couriers got involved.

https://www.cbsa-asfc.gc.ca/travel-voyage/dte-acl/est-cal-eng.html

Your laptop would be duty-free, but you would pay sales taxes.

Just as you would if you purchased from a Canadian shop.

Again, CBSA was very lenient with postal shipping, not so with couriers.

You may be best to ask sellers BEFORE BUYING if they ship with USPS , and direct them to this site, instructing them to look for First Class International Package, which offers them the Tracking they want and gives you a slightly lower rate.

https://postcalc.usps.com/?country=10440

*FWIW- with the current iteration of NAFTA, we have a dutyfree allowance of $150 and a tax-free allowance of $40, both up from the $20Cdn previously.

[femmefan1946]

The limits are $20 for taxes and duty for pretty much everything else from anywhere else shipped by mail or courier.

There is a Free Trade treaty (CERN) in place for European Union imports, but since most people buy very little from the EU, we haven't seen much about that.

[marnotom!]

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@femmefan1946 wrote:

There is a Free Trade treaty (CERN) in place for European Union imports, but since most people buy very little from the EU, we haven't seen much about that.

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This memorandum from the CBSA website went out in 2020, about three years after CETA took effect and still mentions the C$20 threshold for items sent through the postal system.  The way I see it, if an item negotiated through CETA or CUSMA is duty-free as an import, it's duty-free, whether it's a mailed item or not, and not subject to any sort of threshold.