Ebay's New Canadian Sales Tax is a scam

[twdi_22]

The only people who should be charging tax on used goods in Canada are businesses. If people are selling their used goods, they are not required to charge tax. The only exception is automobiles. A private sale of an automobile requires tax before you can register that vehicle, but that tax is paid directly to the government by the buyer.

Generally the sale of what is referred to as personal use property is not subject to GST/HST. Personal use property is an item that people own and use for their own personal use. If you sell a used personal use item then the transactions is generally not subject to GST/HST. There are, however, important exceptions to this rule. One relates to the “small supplier” threshold. 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. The second relates to commercial property. The personal use exemption does not apply to the sale of used commercial property, which is generally always subject to GST/HST.

https://www.northernpolicy.ca/article/tax-implications-of-the-secondhand-economy-4065.asp

Thrift stores, Pawn shops, all of these places are businesses, and must charge tax. They have a GST number these taxes are paid under. If an Ebay seller is doing it as a business, they must be collecting taxes.

Ebay collecting taxes on behalf of the average joe who sells one or two things a year, is extremely shady. There's no business number it's being associated with. What Ebay is doing, is they're collecting taxes, and since there's no business associated with it, they're going to apply those taxes to their own tax debt. Which is as shady as it can get.

I don't buy from Ebay that often, but I was shocked when I went to buy a graphics card from a private seller, and there was tax being charged. Then I noticed their "new policy".

Ebay is dead in Canada.

[jul-262670]

Hello all, lets see the big story , i work hard all year, and My sallary is $50,000 on paper, $27,000 make it to the bank after the taxes and unemployment and others fees. from this 27000$ i have to pay 15% for what ever I buy, so remaing 23000$ in my pocket.

one of the thing I bought was A TV 3000 $ and had to pay Tax 450$

now I want to sell this TV on ebay  for 2000$  its used and no warrenty , and i am not a company , why buyrs have to pay tax? plus do i have to declare this 2000$ on my income?? i dont think so. i already paid taxes ahen I bought , and they want to take income tax when i sell it and tax from the buyer?? so this TV made them 1000$ , more than what manufacture does.

so selling on ebay they want tax, what about i move to kijiji , buyer will come home and take the TV and pay no Tax. how about  

MARCHE AUX PUCES 99% of buisness they dont clollect tax and not paying Taxes? 

[mrdutch1001]

well how about you just go ahead and sell that TV via Kijiji because you would really need lots of luck to sell that TV here on eBay and have it successfully and safely delivered(unless you had it professionally packaged and shipped via a carrier such as UPS or Fedex or someone other than Canada Post since Canada Post doesn't accept such items for shipping..).

plus you best read up on the Canadian Government's taxation processes as applicable to online Marketplace Facillitators such as eBay, Amazon,etc,etc...

[reallynicestamps]

ZOMBIE THREAD FROM JULY 2022

The problem with zombie threads is that the advice may be out of date and no longer useful.

[pjcdn2005]

I wouldn't recommend selling a TV on here either unless you were going to sell it with local pickup only. It isn't a good idea to ship it.  As another poster suggested, a local site might work better for you.

[jul-262670]

you missed the point, TV was an example only.

the main Idea is about the TAX paying for used items.

[marnotom!]

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@jul-262670 wrote:

you missed the point, TV was an example only.

the main Idea is about the TAX paying for used items.

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The official word from the “eBay Tax Team” is that the taxes are applied to the transaction rather than the item. Thank the federal government for putting digital marketplaces such as eBay in the position of collecting remitting taxes from online sales.

You’ll run into a number of situations outside the online world where taxes are applied to the sale of previously purchased goods. Purchases from Value Village are an example, as are purchases of used cars, even from private vendors (as you noted in your original post).

[brettjet38]

Are you a peer-to-peer seller? Here’s what you need to know

April 30, 2021

Ottawa, Ontario

Canada Revenue Agency

What is a peer-to-peer sale?

A peer-to-peer (P2P) sale is the selling of goods or services from one person or party directly to another. You may be involved in P2P selling if you are connecting with buyers through online platforms like websites, online marketplaces or mobile applications (such as Etsy, eBay, Amazon or Kijiji).

Income tax implications

As a resident of Canada, you have to report your income from all sources inside and outside of the country, including P2P transactions, on your tax return. If you paid tax on foreign income, you could be eligible for a tax credit.

It is important to maintain proper financial records of all your sales and expenses. This applies to the sales you make to buyers in Canada and other countries. Keep records of all your purchases to claim eligible expenses on your return.

GST/HST implications

You may have a reasonable expectation of profit from your online activities, and your total taxable supply may be valued at more than $30,000 over four calendar quarters. If so, you will need to register for, collect and pay to the Canada Revenue Agency the goods and services tax / harmonized sales tax (GST/HST) for taxable supplies of goods and services that you made inside and outside Canada. You can get more details on GST/HST registration requirements at: Find out if you must register for a GST/HST account.

How to correct your tax affairs

If you did not report your income from P2P selling, you may have to pay tax, penalties and interest on that income. You can avoid or reduce penalties and interest by voluntarily correcting your tax affairs. To correct your tax affairs (including corrections to GST/HST returns) and to report income that you did not report in previous years, you may:

• Ask for a change to your income tax and benefit return
• Adjust a GST/HST return
• Apply for a correction through the Voluntary Disclosures Program

https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2021/are-you-peer-to-peer-se...

[mrdutch1001]

and the never ending circle of sellers who don't understand the taxation processes involved , whether items are new or used, and the fact that taxation is on the transaction.

[niceoldstuff-1]

Don't forget that Ebay charges taxes to BOTH the Seller and the Buyer on the same item and that is ILLEGAL!! I've been a Seller on Ebay for 23 years and it used to be great but every year it got worse and worse and is now the most DISHONEST and CROOKED website out there! 

[niceoldstuff-1]

and the part you are missing is that BOTH the BUYER and the SELLER are taxed on the same item.... WAKE UP CALL!

[marnotom!]

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@niceoldstuff-1 wrote:

Don't forget that Ebay charges taxes to BOTH the Seller and the Buyer on the same item and that is ILLEGAL!! I've been a Seller on Ebay for 23 years and it used to be great but every year it got worse and worse and is now the most DISHONEST and CROOKED website out there! 

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Buyers are charged on the total of the transaction.  Sellers are charged on the fees they pay for the transaction.  Quite different things.

Objections to this should be raised with your Member of Parliament or the Ministry of Finance, not eBay.

[mrdutch1001]

and the part you are missing is IF you don't like the taxation on eBay, (and the same taxation is on Amazon,Etsy,etc), and IF this Canadian taxation process (Canadian law) is such a problem for you, then perhaps  selling on eBay or on any Marketplace Facillitator site,  is NOT for you... perhaps selling locally would be better suited to your needs....and since you consider eBay to be "now the most DISHONEST and CROOKED website out there! ", why are you still here? I think this is the time & place where we all say BYE BYE!

[mcrlmn]

Like... Obviously you don't.

Wa wa go away! Ha!

[cdnannihilator]

The Turdeau government who believes that "budgets balance themselves" is hemorraging money and raising all kinds of NEW taxes, fees and clawbacks to compensate. This "new policy" is a direct result of that.

Votes have consequences. Not happy? Vote for a boi who's not as pretty, but is much smarter when it comes to economics in the next federal election. Yes this new policy sucks, but assign blame where it is due : your scammy and incompetent duly elected federal government.

Canadians are simply getting what they voted for : Liberal rainbows and unicorns! (and higher taxes & fees on everything)

[marnotom!]

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@cdnannihilator wrote:

The Trudeau government who believes that "budgets balance themselves" is hemorraging money and raising all kinds of NEW taxes, fees and clawbacks to compensate. This "new policy" is a direct result of that.

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eBay has been collecting and remitting sales taxes on behalf of countries and regions such as the US, UK, EU, Australia, and Norway for some time.  The big difference is that sales from sellers outside of the country are also covered in these schemes.  Canada is actually behind the curve compared to a lot of industralized nations.

[mrdutch1001]

and Canadians will get exactly what they don't want with any change of government!

No government is perfect and there is no such thing as perfection in the human race...

everyone makes mistakes and that includes you, me and everyone else= EVERYONE!

[angelchildphoto_usa]

Income yes. NOT HST though, unless the seller is doing over $30K (and therefore has a business #)

[sarlan6]

I came here because I find it to be a scam. I don’t care because I’m just selling my baseball cards and moving on. Ebay is brutal. They nickel and dime you. Hide stuff. Mistake charges. I’ve seen lots in very little time.

They shouldn’t have listing fees while taking 20 percent. If somebody is using up all kinds of space selling useless junk that doesn’t sell? Limit THEM.

The people here crusading for Ebay? You must be real fun to hang out with.

They take 20 percent of all of your sales. They charge you insertion fees when advertising/selling the item is beneficial to THEM.

That aside, people should band together. Used items SHOULD NOT BE TAXED. Items should NEVER be double taxed. It’s criminal. I do believe that a used thrift shop or business selling used good should be taxed on their income. The buyer shouldn’t have to pay sales tax because it’s full taxation was paid by the initial buyer. Anyone who disputes that sentiment? Very curious. Even for cars as far as I’m concerned. Too much tax. Even how you’re taxed on all of your income, and then everything you buy with your money that’s already been taxed.

We need taxes. I’m not disputing that. Yet they give millions and billions to all of these causes that don’t help their citizens while finding new ways to tax them? One side of the political spectrum should not be allowed to handle money, and we know what side that is. Objectively speaking.

[sarlan6]

I think Ebay is a valuable service though. I find their support second to none too. Just so it doesn’t look like I don’t have anything good to say.

[reallynicestamps]

They shouldn’t have listing fees while taking 20 percent.

Sellers have 250 free listings before paying any listing fees.

Store subcribers pay $25 a month for1000 to 10,000 free listings (depending on category)

Fees are charged for processing the buyer's payment.

That payment is made up of three parts.

But the Standard Practice with payment processors (including credit card processors like Moneris) is that the charge is on the money not on how the money was made up.

Provided a seller has not been getting Defects for problematic behaviour, the average fee is about 12.9% while the highest is about 15% (I pay that for the books I sell on another ID).
https://www.ebay.com/help/selling/fees-credits-invoices/store-selling-fees?id=4809

The fee is charged on the Buyer's entire payment.

If somebody is using up all kinds of space selling useless junk that doesn’t sell? Limit THEM.

Useless junk like sportscards? Or cellphone cases? Or postage stamps from countries that don't exist any more?

Who decides what's useless?

They charge you insertion fees when advertising/selling the item is beneficial to THEM.

Jagmeet is my leader, but we live in a capitalist society and eBay is a company whose purpose is to make money.

They make that money by providing a platform and payment processing and negotiating discount postage fees.

I make (some) money selling stuff online. That's my purpose for being here.

Used items SHOULD NOT BE TAXED. Items should NEVER be double taxed.

They are not.

Transactions are taxed. The same item may be involved in multiple transactions even before it gets to the store and is sold as new.

The importer pays duty and sales taxes. The wholesaler pays sales taxes. The retailer pays sales taxes.  The customer pays sales taxes. Then if the customer decides the now used item can be sold on a venue like eBay or PoshMark or Amazon the online buyer pays sales taxes on that transaction.

Although overlooked in this is that all those companies get tax credits. And I can't speak for everyone but I got a GST tax credit cheque last month and there was a tax deduction for provincial sales tax on my income tax form.

One side of the political spectrum should not be allowed to handle money, and we know what side that is.

I agree.

I don't want my taxes going to Volkswagen because the Ontario Tories seem unable to understand that the plant will be closed down once the government subsidy ends. I've watched that happen over and over since the 1960s.

Put the money into lithium mines and make money instead of spending it. But those hardscrabble companies don't have well paid appointments to the Board of Directors.