CANADIAN SALES TAX

[apnoesia]

Enough is enough!

Ebay has built up the expenses for the customers over the last years in a greedy and non reasonably way.
Ebay set me into the seller's department without my agreement, which is only for professional sellers.

I am selling USED items from time to time. I'm NOT a Professional, but a retiree.

I will end my customer relationship with Ebay recently. I think, I'll observe the Ebay day-to-day business
on the internet for a short while ahead.

I'll look (and find) for other online markets and other opportunities to sell my little bit ~sh*t~ , without getting ripped off by over-greedy Ebay and Trudeau regime.

I'm really up set and I feel ripped off by Ebay, associated with the CRA-gangsters.

This will be the end. I'll finish this farce in the near furure forever.
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[marnotom!]

What I’m really not understanding from posts such as yours is how this move to have sites such as eBay collect transaction taxes from buyers is going to affect your sales practices. Can you elaborate on this?

[femmefan1946]

The move to collect Canadian sales taxes for online sales is not eBay-specific.

It was originally meant to help provinces who were losing tax income to online sellers, Joe in Upper Musquobit selling off his collections to supplement his pension, to The Bay or WalMart extending their customer base.

Provinces use sales taxes to finance their responsibilties.

"Among other things, provincial governments have jurisdiction over: their internal constitutions; direct taxation for provincial purposes; municipalities; school boards; hospitals; property and civil rights (their largest area of responsibility); administration of civil and criminal justice; penalties for breaking provincial statutes; prisons; celebration of marriage; provincial civil service; local works; and corporations with provincial objectives." Canadian Encyclopaedia.

You do not pay tax on the items you sell. You pay fees to Managed Payments for payment processing on the entire payment your buyer makes.

[mrdutch1001]

Sellers really need to understand that this new Canadian taxation process is not unique to eBay, nor is it an eBay "greedy cash grab"...this is a LAW and ebay and all similar selling sites are required by law to implement this tax process. It is the BUYERS that are paying the sales tax, and it matters not whether new or used items..this new Canadian taxation process is taxation for online transations. Sellers pay fees on the TOTAL transaction and that includes paying fees on any applicable taxes.

If you think you are going to avoid this taxation process by going to other online selling sites, you are mistaken... MAYBE for the time being the smaller, lesser known sites will not be brought on board, but in the near future ALL marketplace facilitators will be required to be a part of this Canadian taxation process, much the same as the USA "internet" taxation process which has been legislated into law by at least 45 USA states, has been integrated into all the larger marketplace facilitators/selling sites....

[explosion.morbide]

it affect sellers as they have to reduce all their price in order to sell. It's 5%-15% more that the customer will have to pay. You have to shave this 5-15% to remain competitive.

[ricarmic]

This for Canadians is similar to the IST (Internet Sales Tax) introduced in the last couple years.

There was a lot of doom and gloom put out in the boards when it was introduced, esp USA boards.

I sell on multiple sites. What I observed initially was that as mentioned a couple times US buyers sought out other smaller sites that weren't having to apply the taxes (yet).

I got a lot of questions asking why a seller in Canada was causing them to pay the IST. Many buyers had no idea how it worked.

However after a few months I noticed that the buyers that were predominantly eBay buyers before IST, resumed being predominantly eBay buyers after a while, despite the fact the "taxless" bonus was still in place on the smaller site(s) that they started using when it was introduced.

Folks will be annoyed for a while but after a while things will likely be back to normal on the assumption things follow a similar patern to the introduction of the IST for the American folks.

I never reduced my prices and I did not observe a noticeable change in spending, especially over the longer term.

However, this will compound the effect of higher inflationary pressures reducing folks discretionary spending, at least in my world that already has had a much higher potentially longer term effect.

[xman-77]

adding tax to used items....lol....u think this is fair.....who is greedy

[marnotom!]

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@xman-77 wrote:

adding tax to used items....lol....u think this is fair.....who is greedy

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I had to pay taxes on the last used vehicle I purchased.  Didn't you?

[marnotom!]

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@explosion.morbide wrote:

it affect sellers as they have to reduce all their price in order to sell. It's 5%-15% more that the customer will have to pay. You have to shave this 5-15% to remain competitive.

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Competitive with whom?  All the other online sellers whose sales are also subject to taxes?

[brettjet38]

If you already did not know 

This TAX collection system was planned by your Canadian Government, not eBay!

It was in the 2021 Canadian Budget, you did read it right, as a voter you should always read what is going through the system in the pork rind, CBC and most mainstream media only tells you the "things" the GOV wants to be publicized...

Also, it applies to all "online marketplaces" Amazon, Etsy, and all others. 

Any marketplace "Facilitator" that makes over $30,000.00CDN in sales has no choice other than to charge and collect the tax, this is not an eBay thing, it's a Government thing, put in place by the people you elected and put into office...

...if you have an issue contact your local MP.

BTW - This is actually a worldwide thing, The UK, USA, Australia, and a whole slew of others already have a similar tax or shortly will.

So good luck going elsewhere...

...or start your own website and attract your Buyers to it.

[brettjet38]

When I purchased a used chair at the local "junk shop" I paid the local taxes...

[brettjet38]

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/b-084r/notice-chang...

Implemented in 1997 all across Canada

When you purchase a used shirt and a second-hand store you pay the taxes and have done since 1997, so why would you not pay it an online purchase in 2022?

[brettjet38]

Probably because many of the sales are undeclared, which will now be hard to hide as MP is connected directly to the Bank Accounts of each Seller in essence so the CRA can more easily trace "Incomes".

Also, just an observation...

But many of the individuals going all gaga are mostly selling .99c to 2.99$ items and items that exist in the millions (ok, 10s of thousands of copies) usually.  The bigger Sellers do not care as they also have many more higher proceed items and can offset all the lower-priced stuff. Smaller Sellers tend not to have that kind of Inventory on hand.

[brettjet38]

People in denial, see only "FOG"...

I look at it this way eBay got to operate in Canada for 17 years basically TAX-FREE, now they have to work with the GOV which means, TAXES for ALL!

This will get rid of iffy Sellers on the internet as now everyone will have to formally identify themselves before they can even sell online. And you are correct this will eventually apply to ALL marketplace facilitators who will be required to be a part of this Canadian taxation process.

As I have said before, this was long overdue and the tax-free days are almost over.

[brettjet38]

@explosion.morbide "it affect sellers as they have to reduce all their price in order to sell. It's 5%-15% more that the customer will have to pay. You have to shave this 5-15% to remain competitive."

Not true, if a Buyer does not want to pay taxes they won't be shopping online, and I still have the same Buyers in the USA after the Tax collections started as I did before the Tax collections started, people will adapt...

Also, it will encourage more "local" shopping, which is what the governments really want anyway, just like they prefer you take your holidays in your own country, not overseas (it's bad for the environment). passport delays anyone...

Everything is planned, right down to the future implementations of BASIC INCOMES, these new taxes are going to be very useful...

[mrdutch1001]

and IF you think this is all so unfair, just wait till this spreads across the USA states and perhaps eventually makes its way into Canada:

https://www.ecommercebytes.com/2022/06/30/even-marketplace-sellers-will-pay-a-price-for-new-colorado...

[cardcentral_ca]

The way the are charging percentage based fees on tax is 100% a money grab.  They should have upped the 30 cent transaction fee.  The way they are doing it makes it more difficult and very time consuming for me to adjust prices accordingly.   And of course not all provinces and territories have the same tax rate.  I obviously have to go with 15% but there are 4 at only 5%, then jumps up to 12, 13, 14.957 and 15%. 

Not only is the percentage based fee on taxes a money grab, they are likely remitting the taxes collected quarterly.  Making interest on the money before remitting. 

Unless they see a decrease in sales because consumers don't want to pay taxes and stop buying, this will likely be very lucrative for them.  

[marnotom!]

@cardcentral_ca, for the past couple of years or so, most of your US buyers have been paying US sales taxes on their purchases from you and you’ve been paying a percentage of fees on the entire transaction value on those sales.

[brettjet38]

...all to promote "Shop Local" and reduce the environmental footprint of wasteful online shopping. Germanys Packaging Act is also a thing coming to us all soon. 

[flipistics]

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@brettjet38 wrote:

...all to promote "Shop Local" and reduce the environmental footprint of wasteful online shopping. Germanys Packaging Act is also a thing coming to us all soon. 

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I honestly don't see that happening over here (and especially not in the USA). I could see a requirement for added shipping material (box and void fill) to not contain plastics, effectively eliminating bubble wrap and poly bags.