Taxes on used items

[presencegirl22]

Does anyone have any experience on how to deal with taxes on used items? i know in Canada if we buy a used item there should be no tax because tax was already paid on it when it was purchased as new. 

Is there such a similar exemption on internationally purchased items?

[ypdc_dennis · Accepted solution]

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@presencegirl22 wrote:

Does anyone have any experience on how to deal with taxes on used items? i know in Canada if we buy a used item there should be no tax because tax was already paid on it when it was purchased as new. 

Is there such a similar exemption on internationally purchased items?

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No exemption on mail imports just because it was "used" since Canadian sales tax has never been paid on most imports when they were "new".

Some  stuff is tax exempt but that is because of what it is, not because of it's condition.

[femmefan1946]

Most people are only rarely buying used items, and some charitable thrift stores are actually exempt or include the sales taxes in the price (because it's not so much charging the tax that the Revenue cares about, as long as it is remitted).

But if you buy a used car, you pay sales tax. Or clothing in a consignment shop (as opposed to a thrift).

[femmefan1946]

Also -- the taxability of an item is not used up the first time it is sold.

Between the manufacturer and the retailer, an item may be taxed at every step of the way.

The companies in the chain do get to claim some of those taxes back, and also are paid a small fee to submit the paperwork and remit the tax collected.

The GST in particular is a Value Added Tax, and the reason tax is collected is that the Value Added is making the item available for purchase.

[wizbooth-ca]

Used items are considered taxable when sold as a business.
I guess it is a thin line when you sell your stuff, you accumulated at home, then no tax.
It is a decision you gotta take if you buy / sell used items for business or emptying your house.

[wizbooth-ca]

In regards imports, every time I imported products, I had to pay Canadian Tax, no exception. One box said 'gift' on it from China and yet I paid Customs Tax 13% for Ontario. I also paid tax for shipping because items did not exclude shipping as price, it was one big clunk number including products + shipping. Canadian border looks at what the bill states. That's my experience.

[rwsr19]

That's wrong. I've bought used items from ebay..over 20k in 6 yrs and it doesn't matter who you buy from  or the condition of the item, they now charge tax on everthing in Canada period.

[rwsr19]

That's why I'm closing my account

[marnotom!]

Why would you close your eBay account over something that our government's done?

[kh-leslie]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.