Canadian Sales Taxes - Questions

Hi everyone –

 

We know you might have questions regarding the email you recently received about eBay Canada collecting Canada Sales Tax (GST/HST/QST/ PST) on behalf of our sellers. Please feel free to leave your questions and comments here and we’ll get them answered as soon as possible. Keep in mind there could be a delay as we check with internal teams to ensure we’re getting you the right answers to your questions.

 

Thanks for your patience!

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Canadian Sales Taxes - Questions

marnotom!
Community Member

What is "Canada Sales Tax"?  We don't have anything by that name here.  Do you mean GST (Goods and Services Tax) and HST (Harmonized Sales Tax)?

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Canadian Sales Taxes - Questions

velvet@ebay I have not received any such email as of yet. Would you mind posting a link here in the forum so that I may read it?

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Canadian Sales Taxes - Questions

What email????

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Canadian Sales Taxes - Questions

I think it as pretty clear based on "Canada Sales Tax (GST/HST/QST/ PST)".

 

Or were you just trying to be an ass?

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Canadian Sales Taxes - Questions


@canada_goose_whisperer wrote:

velvet@ebay I have not received any such email as of yet. Would you mind posting a link here in the forum so that I may read it?


See attached. Just received but it may be on tape delay or got filtered.

 

https://community.ebay.ca/t5/Seller-Central/eBay-Canada-collecting-Canadian-Sales-Tax-as-of-July-1-2...

 

-Lotz

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Canadian Sales Taxes - Questions

If I understand this correctly, now that Ebay plans to charge and collect gst/pst and in my case pst, there is no need for me to use the tax table once this is implemented in July. No further need for me to collect and or remit as taxable sales from this platform, as eBay will be doing that and forwarding the money to revenue Canada.

 

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Edit: A reply to your question can be found here

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Canadian Sales Taxes - Questions

Hi guys! I've been a registered Canadian business for over 16 years now, and I employ the Input Tax Credit (ITC) form of collecting GST/HST from my online (eBay) customers. In essence, I credit against any of said taxes collected, with purchases and expenses that are made for and by the business. So - if eBay is going to start collecting GST/HST on my behalf as of July 1 2022, how does that work for ITCs? Will I start losing out on hundreds of potential tax credits?  It's a bit confusing and rather scary to be honest. Thanks in advance for your response!

 

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Edit: A reply to your question can be found here

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Canadian Sales Taxes - Questions


@marnotom! wrote:

What is "Canada Sales Tax"?  We don't have anything by that name here.  Do you mean GST (Goods and Services Tax) and HST (Harmonized Sales Tax)?


@marnotom! We went ahead and updated the post to reflect GST/HST/QST/ PST. Thanks! 

 

@3dprinting.agency it didn't have that bit included earlier but we've added it to help clarify things. 

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Canadian Sales Taxes - Questions


@canada_goose_whisperer wrote:

velvet@ebay I have not received any such email as of yet. Would you mind posting a link here in the forum so that I may read it?


Keep an eye out for the email @canada_goose_whisperer!

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Canadian Sales Taxes - Questions

The phrase "Canada Sales Tax" does not accurately describe what taxes will be collected as outlined in the email. It would have been much better to have used the phrase "Canadian Sales Taxes". Having only just received the email a few minutes ago I also wondered what exactly velvet was writing about.

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Canadian Sales Taxes - Questions

Hi sunflowerlaptops.

 

I think it does matter how much sales taxes you collect. You get back all sales taxes you paid for purchasing goods for purpose of business. You just not going to pay to CRA the portion you collect from your customers.

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Canadian Sales Taxes - Questions


@3dprinting.agency wrote:

I think it as pretty clear based on "Canada Sales Tax (GST/HST/QST/ PST)".

 

Or were you just trying to be an ass?


It's clearer if one has seen the email, which I hadn't at that point.  (Thanks, @lotzofuniquegoodies!)

 

"Canada Sales Tax" sounds like the name of an actual tax, and a single tax at that, in the same vein as we use "Canada" to describe a lot of federal government agencies and services, such as Canada Post and Canada Revenue Services.

The email is a bit clearer, but refering to "Canadian sales taxes" would have been clearer still.

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Canadian Sales Taxes - Questions

" eBay aims to alleviate our sellers of the administrative burden to accurately charge and collect sales taxes on taxable sales made through the platform"

 

We had a simple sales tax table with check boxes. How was that a burden? Any business with $30K in sales has to collect tax.

 

This is going to be an accounting nightmare for HST returns. We will have to manually keep track of eBay HST that you remit for us and make journal entries each time we file a return .

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Canadian Sales Taxes - Questions

Hello,

 

I realize that the buyer is paying for the GST/HST/PST/QST however will this amount get added to the total sale upon which the seller pays eBay a commission fee? I ask because when a US buyer purchases from me (I'm a Canadian seller) eBay adds state taxes to the sale and then forwards the taxes to the appropriate authority, however I'm still required to pay a commission on the tax which is added to and then removed (almost immediately) from the sale.

 

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Edit: A reply to your question can be found here

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Canadian Sales Taxes - Questions

How is eBay going to differentiate tax exempt goods from each other? Will eBay have an entire list of exempt metals and other used items?

 

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Edit: A reply to your question can be found here.

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Canadian Sales Taxes - Questions

I'm wondering the same thing, and won't be surprised in any way whatsoever if eBay starts applying the fee structure to this additional amount. They already seem to have difficulty understanding that an item that sells for ten bucks is worth ten bucks whether I'm mailing it to Canada for $3 or the U.S. for $6. They'll probably apply the fees to the taxes, at which point sellers will have no choice but to pass it on to buyers, then the buyers will get annoyed and leave lower DSRs or negative/neutral feedback as a result. Just wait for it.

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Canadian Sales Taxes - Questions


@marnotom! wrote:

@3dprinting.agency wrote:

I think it as pretty clear based on "Canada Sales Tax (GST/HST/QST/ PST)".

 

Or were you just trying to be an ass?


It's clearer if one has seen the email, which I hadn't at that point.  (Thanks, @lotzofuniquegoodies!)

 

"Canada Sales Tax" sounds like the name of an actual tax, and a single tax at that, in the same vein as we use "Canada" to describe a lot of federal government agencies and services, such as Canada Post and Canada Revenue Services.

The email is a bit clearer, but refering to "Canadian sales taxes" would have been clearer still.


Not a problem @marnotom! . With soo many changes as of late and not everyone seeing those official/unofficial eBay announcements figured wouldnt hurt to post.

 

In the past selling on marketplaces like eBay you were putting things out there that other folks were looking for or getting them out of a landfill. Maybe/hopefully putting some cash back in your pocket. Okay best of intentions personified!! <Insert Dreamer tune here!!>

 

Going forward with limited options for relatively inexpensive shipping, crazy fuel surcharges  that will most likely never go away (5 bucks on 30 Km delivery) and tax applied to tax and then passing it on to the seller, not soo much. Would say my 2 cents worth but probably would get taxed for doing so!!!  Cookiejar Insurance you say? I'd just like to be able to afford the cookies to go in that jar!!!

 

-Lotz

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Canadian Sales Taxes - Questions


@the-chief-factor wrote:

 

I realize that the buyer is paying for the GST/HST/PST/QST however will this amount get added to the total sale upon which the seller pays eBay a commission fee? I ask because when a US buyer purchases from me (I'm a Canadian seller) eBay adds state taxes to the sale and then forwards the taxes to the appropriate authority, however I'm still required to pay a commission on the tax which is added to and then removed (almost immediately) from the sale.


And to add to your question, if Canadians selling to Canadians on eBay are going to be subject to FVF being charged the sales taxes added to the transaction, will sellers not based in Canada also be subject to paying FVF on Canadian sales taxes?

 

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Edit: A reply to your question can be found here

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Canadian Sales Taxes - Questions

I am a standard person that doesn't own store but have a couple of sales per year which definetly are not that much 

 

I am already charged taxes on the final sale - example below in red...

 

  • Total fees for item
    • Final Value Fee
      -C $16.13
      Variable percentage  Video Games & Consoles category
      Rate for C $0.00 - C $7,500.00
      C $125.00
      ×
      12.9% =
      -C $16.13
Final Value Fee
-C $0.30
Per order fixed amount
 
Total fees
-C $16.43
GST/HST(5.0%)/QST(9.975%)
-C $2.45
Total fees (includes GST/HST/QST)
-C $18.88
 
 
Am i now going to also be taxed on the used items i am selling on top of the taxes on the final sales value fee ?
 
Thank you
 
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Edit: A reply to your question can be found here.
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