GST charged on US used item shipped to Canada. Exchanged was charged on the entire total.

[concerned4all]

Hello everyone!

Can someone tell me why I was charged GST on a used  item I won  from the US?  I have not seen this on my other US auctions.   The US exchange was charged on the entire total including the GST.  

Thank you.

Kitty

[mrdutch1001]

New or used, and factoring in the value of the item, category of the item, Goods imported to Canada from the USA are subject to GST/HST depending on province of the purchaser. Exchange rate will be on the total transaction.

[doc_scribe]

Many shipments, if not most, will slip through without assessment, then something of similar (or lower) value will arrive GST/HST due.

Just border crossing luck of the draw. It's like a 'reverse' Lottery. We've all 'won' them.

[concerned4all]

I won an auction from the US and it has been paid for but GST was added to the total and then the US exchange.  My question is why was I charged GST on a US ebay purchase?

[concerned4all]

Thank you for your response.  I was looking to find something in writing on Ebay to show that GST is collected from US ebay auctions/purchases and sent to Canada but could not fnd anything to confirm this.  Is this something new as my uderstanding is that only in Canada the GST is collected from buyers/sellers?

[marnotom!]

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@concerned4all wrote:

 I was looking to find something in writing on Ebay to show that GST is collected from US ebay auctions/purchases and sent to Canada but could not fnd anything to confirm this.  Is this something new as my uderstanding is that only in Canada the GST is collected from buyers/sellers?

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Knowing the shipping method, or better yet, the listing number would help us give a more informed response.

Basically, for items not sent through the postal system, the carrier or a designate of the carrier is responsible for ensuring that taxes (and duties, if applicable) are paid on the item.  If you've ever purchased an item on eBay that was forwarded by the Global Shipping Program, the program paid those taxes and duties on your behalf and you repaid the program with the "import charges" that you were charged in the listing.

With the little information I have on your purchase, I'm hazarding a guess that this item is being handled by the blandly-named "eBay International Shipping" service, which seems to sometimes charge taxes (and other import-related fees) due at the time of purchase, and sometimes leaves it up to the carrier to charge and collect them at the time of delivery.  The eBay International Shipping terms and conditions for buyers can be found on this page.  Just do a search for the word "taxes".

[concerned4all]

Thank you!  Yes, it is being shipped by the Ebay International shipping method and I was charged more for shipping as well when I checked out.   I really feel duped, so I asked the seller to cancel my transaction.  Considering the US exchange rate and being charged GST that was not disclosed in the listing makes the whole thing unreasonable.  Even more so if they don't accept the cancellation.

[marnotom!]

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@concerned4all wrote:

Thank you!  Yes, it is being shipped by the Ebay International shipping method and I was charged more for shipping as well when I checked out.   I really feel duped, so I asked the seller to cancel my transaction.  Considering the US exchange rate and being charged GST that was not disclosed in the listing makes the whole thing unreasonable.  Even more so if they don't accept the cancellation.

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That's interesting.  I've seen a few listings for items handled by the new eBay International Shipping service that have the note that taxes will be charged at checkout, and some that state that the item may be subject to additional charges, presumably after checkout.  How much was the difference in shipping charges?   Were you logged into eBay before you hit the "buy it now" button?   I'm wondering if customs processing fees are being thrown into the shipping charge or if the exact shipping charge couldn't be listed because you weren't logged in with your shipping information.

Aaaaanyway, I'm suggesting to my fellow Canucks that they try to hold off on purchasing items handled by eBay International Shipping as it sounds as though there are a few bugs that need to be worked out on it.  The catch, unfortunately, is that the bugs can't be identified if there are no human guinea pigs to try it out!

[concerned4all]

This was a auction.  No buy it now and yes, I was logged in.    My understanding is that the shipping fee listed shoud be the shipping charge upon checkout.  I have purchased many other items using the same shipping service and there have been no extra cost.  I must admit that I do not like this new shipping service (EIS).

The difference in the shipping is $ 1.04 and though it's not much, it is still more than what was listed.

C $61.04

US $43.37

Apr 10 at 11:47 AM

1 itemUS $14.99

ShippingUS $23.39

GST/HSTUS $4.99

DutiesUS $0.00

Order totalUS $43.37

[concerned4all]

I also called Ebay twice and spoke with 2 agents without any explanation as to why I paid GST.

[mrdutch1001]

eBay phone reps are eBay "reps" in name only and not necessarily very knowlegeable in any aspect of selling activities on eBay., which is why there rarely is any satisfaction resulting from phone calls to eBay. Best to discuss a situation using the chat line and chat with someone that actually can give assistance and/or via eBay's social media options..

[concerned4all]

That's exactly what it sounds like.  Not knowledgable at all.  Not helpful at all.  That is why I came to this forum and would like to let everyone know that this EIS shipping option has issues and one must be careful when checking out after auction/purchase.  I just may have made my last purchase on Ebay.

Thank you to all for your input and help.

[brettjet38]

You will pay TAXES no matter where you purchase your items from and as for the GSP being replaced by the ''Ebay international shipping''...

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...

[concerned4all]

Thank you very much for that information and link.  Ebay could not show me anything in writing to confirm why GST was charged.  Strange...I have made several purchases in the last 30 days using the EIS service and have not once been charged the GST or had the shipping price change when checking out.  It needs to be consistent, otherwise, it's very misleading to the buyer why they are being charged the GST and higher shipping rate than what is shown in the original listing.

Thanks again.