Item in Canada, Seller in Canada, Buyer in Canada - US TAXES!?

Morning,

 

Just won an item that is located in the same province as myself but the seller is selling in USD, and won't change this.

 

As a result I am being requested to pay US taxes on an item that will be shipped from Canada to Canada.

 

Also the item claims the seller may not ship to Canada which is also preventing me paying for the item.

 

eBay chat have raised it with the tax department, but beyond this they don't seem to be too interested in the problem.

 

Surely this is misrepresentation, and also tax fraud?

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Re: Item in Canada, Seller in Canada, Buyer in Canada - US TAXES!?

marnotom!
Community Member

I’d call it a glitch rather than fraud, if this is panning out the way you describe.

What US taxes are you being charged? Are you sure it’s not Canadian taxes that are mislabeled as US taxes? CRA has required that eBay start charging and collecting HST/GST+provincial sales taxes on Canadian-to-Canadian sales since the beginning of July.

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Re: Item in Canada, Seller in Canada, Buyer in Canada - US TAXES!?

If the seller is listing in USD, then the listing is on dotCOM.

But since the buyer pays Internet Sales Tax* based on his own location, unless you have a US address the sales tax you see is the Canadian GST/PST/HST/QST you normally pay.

This has been collected and remitted by eBay since July 1, 2022, so you may not have run across it before.

 

Some sellers who list on dotCOM, do not ship to Canada, including some Canadian sellers who prefer not to ship domestically.

One reason may be that they think the high cost of postage from Canada Post will cause problems, which is silly.

Another is that they do not have the right to sell a particular product in Canada. We had that problem when we listed our (now retired) shop merchandise on eBay. We were Canadian agents for Replogle Globes, but could not sell them to the USA without losing our contract. I had the same problem when I was selling Vermont Castings stoves, which for some reason were priced lower in Canada than in Vermont where they were made.

 

 

 

 

*It isn't really, it is the same sales tax you pay at the bookstore or restaurant.

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