@fslt40 wrote:
I am new back to eBay and agree, they are ripping buyers and sellers off with the taxes rules. Definitely not forwarding that tax on my behalf since I am not a business seller and they have no remittance number for me. And why would I need to charge tax when CRA states, you only need to pay tax if you hit the “small supplier” threshold, which is, If the sales of personal use property in a given year exceed $30,000 then you are required to be a GST/HST registrant and you are required to charge and remit GST/HST.
You're not charging the tax. eBay is. eBay is forwarding tax on behalf of sellers who are already GST/HST registered. In your case, it's a bit different, but since eBay is a venue where sales taxes are collected and remitted and it's the venue charging and collecting a time, you'd have to figure out some way to do this yourself if eBay didn't do it "on your behalf."
@fslt40 wrote:
Otherwise, the only tax charged on PUP, is capital gain tax if your personal used goods, sells for over 1000.00 Even then it should only be taxed at 50% for capital gains rule. Collecting taxes from buyers on all sales of these personal used goods is just wrong. And the charging sellers fees on the total, including shipping, is really an asshat thing to do! Looking elseware to sell, to avoid the CRA, eBay and Canada Post greed.
Think of it this way, if you placed your goods with a consignment store for the store to sell on your behalf, they'd be subject to taxes, too, if the store were GST/HST registered. Even if they were "personal used goods." As soon as you start involving another party in the sale of your goods, the game changes and it's no longer a pure peer-to-peer sale. eBay 2022 is a far cry from what it was in 1999 when there was a lot more independence afforded to sellers. It's no longer an "online garage sale," either.
@fslt40 wrote:
eBay is breaking the law by charging buyers taxes on items under 1000. , that they shouldn't be paying taxes on! If I sell my old shoes to someone at a garage sale or on marketplace, CRA says I don't have to collect taxes on them. (as long as i don't do more than $30,000 in a year) Yet if sell them shoes on eBay.. taxes need to be paid by buyer and tax money goes where... to eBay . Just wrong!
I'm not sure what part of the recently enacted law involving the taxation of transactions (note this distinction) on digital marketplaces is being broken here. From what I've seen of the legislation, there's nothing about dollar limits on sales conducted on Canadian digital marketplaces to Canadian buyers.
Speaking of tax legislation, similar legislation has been in place for the past two to three years in jurisdictions such as the United States (Remember the squabbles about "Internet Tax?"), Australia, the European Union and European countries not part of the union, the big difference being that on digital marketplaces (or marketplace facilitators, as they're often referred to in the US) have to charge and remit taxes on sales where the seller is outside of the buyer's country as well as within. This hasn't taken effect in Canada yet, but I suspect it will sometime in the future. I'm wondering if the Global Shipping Program as we know it is being wound down in part because of these changes in VAT collection for international transactions.
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