eBay

velvet@ebay · ‎05-03-2022

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!

mrdutch1001 · ‎06-02-2022

Not an expert on the subject but it is my understanding that there are many instances where taxes are applicable no matter whether Indian status or not...Tax exemptions only apply to specific situations.

janetbargainboutique · ‎06-02-2022

I am updating this message.

As I said before, we, as resellers, pay tax to the government when we buy goods and re-collect it back when we sell it to the buyers.

The concept of HST is for consumers and not distributors and resellers. ALL shops in Canada pay tax when they purchase material and then charge tax from the end users and consumers.

eBay is interfering with the natural flow of doing business . Someone who is registered with CRA and has HST number, has been authorized to collect tax and remit it to the government. That is the whole purpose of registration .

If eBay wants to deprive re-sellers from collecting tax and offsetting the paid tax, then eBay needs to clarify how we supposed to offset the tax that we originally paid.

lotzofuniquegoodies · ‎06-02-2022

@janetbargainboutique wrote:
I am updating this message.
As I said before, we, as resellers, pay tax to the government when we buy goods and re-collect it back when we sell it to the buyers.
The concept of HST is for consumers and not distributors and resellers. ALL shops in Canada pay tax when they purchase material and then charge tax from the end users and consumers.
eBay is interfering with the natural flow of doing business . Someone who is registered with CRA and has HST number, has been authorized to collect tax and remit it to the government. That is the whole purpose of registration .
If eBay wants to deprive re-sellers from collecting tax and offsetting the paid tax, then eBay needs to clarify how we supposed to offset the tax that we originally paid.

From a personal perspective I believe what they would like us either to do is markup the markup we are building in to cover fees/costs & the etceteras(fuel surcharges/packaging/gas) or the alternative....sell stuff at a loss. Either way eBay wins so in their mind...No big deal!!

The other day got a message from eBay "advising" me that I no longer qualify for Top Rated Status for Global. Only reason I no longer have Top Rated Status is sales have dropped off the cliff because of all their recent changes(so called improvements) that were "supposed to" make things better for myself/and majority of others, only have made selling next to impossible to make an honest buck!!!!

-Lotz

modular_homes_by_asymptech · ‎06-02-2022

What if I'm a Canadian seller and sell to a USA address buyer, will the buyer be charged Canadian taxes? Or is this only for Canadian sellers to Canadian buyers?

marnotom! · ‎06-02-2022

@modular_homes_by_asymptech wrote:

What if I'm a Canadian seller and sell to a USA address buyer, will the buyer be charged Canadian taxes? Or is this only for Canadian sellers to Canadian buyers?

A US buyer purchasing from a Canadian seller will be charged US taxes through eBay if they're required by their state government, just as they are currently.

As of July 1st, eBay will be collecting sales taxes from Canadian buyers purchasing from Canadian eBay sellers.

jasmen@ebay · ‎06-03-2022

@cgphile wrote:

Hello,

Can you please tell me when ebay will be sending out the billing agent authorization form for me to complete?

And what is the CRA form number?

Thanks 🙂

Hey @cgphile here's what we got from team

The email to all sellers with the billing agent authorization form was sent on Tuesday May 31, 2022. We have consolidated the CRA and Quebec requirements onto a single PDF so there is no corresponding form number. Please email CanadaGST/PST@ebay.com to request this form if you have not received it.

jasmen@ebay · ‎06-03-2022

@bikegeez wrote:

I received no email and Ebay is illegally charging me GST and Quebec sales tax. The tax laws are explicit for Canada revenue agency and Revenu Quebec. I receive less than 30,000 gross sales as an amateur hobbyist sellin personal items and am exempt from being charged tax and GST as a seller. Taxes when applicable are required to be paid by the buyer, NOT the seller. and only to buyers within Quebec. International buyers are only required to pay the customs duty of their specific country and for purchases from within their own borders. I have been in contact with my family accountant and the law states explicitly so. I am well below the 30,000 threshold and my total gross sales have been actually less than $1,000.00 for the last 5 months. Ebay is also required to provide a quebec and canada issued paper document stating its collection . It has no legal right to collect any tax arbitrarily without express authorization and a tax permit issued from revenu que. and ca. revenue agency. Simply stating "we have been in contact with tax canada and Quebec" mean nothing without certification from the revenue agencies. That is simply lip service. I want ebay to stop charging taxes on my sales because they have no legal right to do so and are breaking the law 4 instances each time by doing so. Also Canadian tax laws are extremely different than those in the U.S. they are not interchangeable.

Changing tone to plain english this looks like another money grab disguised as a "policy" except this time it is absolutely illegal. After nearly 20 years on ebay and having a 100% positive feedback record I smell a rat.

Hey @bikegeez here's what the team came back with:

eBay is not currently collecting any GST/HST/PST/QST on transactions to Canadian buyers. There are some sellers who may be required to collect the tax who are collecting on their sales to Canadian buyers. Any issues with tax collection prior to July 1, 2022 should be directed to the sellers on these transactions.

thanks.

velvet@ebay · ‎06-03-2022

@sunflowerlaptops wrote:

Oh boy. Now I'm even more confused, ha ha. Thanks for your input, ricarmic & lotzofuniquegoodies. I did those paper forms for years, until a few years ago when it switched online... but the concept and break-down is still the same, as far as reporting your sales and adjustments, how much tax you collected, and how much tax you are claiming on your purchases.

"This as I currently understand it would mean that eBay sold stuff looks the same as internationally sold stuff (zero rated). For an easy example if someone sold ONLY stuff on ebay then our sales would be $XXXXXX and the GST/HST collected by us would be $0.00 This would also mean that we'd get a 100% refund of our ITCs."

Not 100% about that. Even as I collect and report GST/HST now, you can't simply take my sales figure, and multiply it by 0.15 (HST for NB), and expect that to be what I should be collecting from buyers. Since I ship 99.9% of my stuff all across Canada, as per the CRA, tax is charged on the (sale + shipping) as per the province in which the item is entering i.e. the buyer's address. The CRA actually contacted me many years ago regarding this, and I explained to them about the nature of my business, and how I export items and charge tax accordingly... apparently they made note of it in my account as I have not been bugged about it since (that works for me).

Anyhoo.... what I'm struggling with is that online GST/HST form... I can still fill everything out, really, as the order details page for each sale (and purchase) shows the sale price, the shipping cost, and whatever tax is collected (or claimed), and I record it in my books. So what I'm confused about, is if eBay is automatically sending 100% of what they (or what I used to) collect as of July 1 to the CRA, how that affects that online form. Guess I need more information, but nobody seems to know for sure yet; it's all speculation and "best guess". Ugh.

Hi @sunflowerlaptops! The tax team said:

For sellers who previously were required to be registered to collect and remit the tax, please consult with your tax advisor on your monthly filing requirements going forward.

jasmen@ebay · ‎06-03-2022

@lotzofuniquegoodies wrote:

velvet@ebay wrote:

@beavosorus wrote:

Same as was mentioned before, since we don't actually get the tax, how does this effect our Sales Tax Paperwork?

If I collect $1000 in taxes I can use that to offset what I paid in taxes on the raw goods I purchased.

If Ebay collects the $1000 in taxes, what does that do to offset the taxes I paid for the product? Is the govt going to match the difference? If so who reports first?

I have only been collecting sales tax for 2 years and now that I have finally (sort of) figured out what is going on, this is going to create some serious changes on my end.

Hi @beavosorus! The tax team said:

Beginning July 1, 2022, eBay will be responsible for the collection of the GST/HST/PST/QST intra-Canada transactions. Sellers who have historically taken an Input Tax Credit (ITC) may be in a refund position and may need to seek refund directly from the CRA/Quebec going forward.

jasmen@ebay

Hello Jasmen,

Will eBay be issueing sellers a detailed summary on a monthly basis of tax collected/credited to CRA or will sellers need to generate a CSV report to try to make heads or tails of what was collected. I've not seen this explained anywhere. If I have missed, my apologies. The majority of sellers do not have an accountant in their back pocket, in their budget or on speed dial.

-Lotzofuniquegoodies.

Hey @lotzofuniquegoodies here's what I got from the tax team:

@lotzofuniquegoodies wrote:

velvet@ebay wrote:

@beavosorus wrote:

Same as was mentioned before, since we don't actually get the tax, how does this effect our Sales Tax Paperwork?

If I collect $1000 in taxes I can use that to offset what I paid in taxes on the raw goods I purchased.

If Ebay collects the $1000 in taxes, what does that do to offset the taxes I paid for the product? Is the govt going to match the difference? If so who reports first?

I have only been collecting sales tax for 2 years and now that I have finally (sort of) figured out what is going on, this is going to create some serious changes on my end.

Hi @beavosorus! The tax team said:

Beginning July 1, 2022, eBay will be responsible for the collection of the GST/HST/PST/QST intra-Canada transactions. Sellers who have historically taken an Input Tax Credit (ITC) may be in a refund position and may need to seek refund directly from the CRA/Quebec going forward.

jasmen@ebay

Hello Jasmen,

Will eBay be issueing sellers a detailed summary on a monthly basis of tax collected/credited to CRA or will sellers need to generate a CSV report to try to make heads or tails of what was collected. I've not seen this explained anywhere. If I have missed, my apologies. The majority of sellers do not have an accountant in their back pocket, in their budget or on speed dial.

-Lotzofuniquegoodies.

Hey @lotzofuniquegoodies here's what I got from the sales team:

Detailed seller reporting information will be provided monthly indicating the eBay collected tax. This will indicate the Federal and Provincial taxes collected from buyers on your sales – and the tax that will be remitted by eBay Canada Limited directly to the appropriate taxing authorities. There are no new requirements for sellers who were not previously required to collect and remit. For those sellers who were required to be registered and collecting, this does represent a mid-year change. However, the administrative burden will be eBay’s beginning on July 1, 2022.

Thanks!

marnotom! · ‎06-05-2022

Hey, velvet@ebay, could you check with the tax team about whether sales taxes are going to be applied to the seller's shipping rate, too? If shipping charges aren't subject to tax on the transaction, I'm thinking that sellers who fold their shipping charges into the item price and offer "free" shipping may be at a competitive disadvantage.

Or has this been asked already?

reallynicestamps · ‎06-06-2022

@ricarmic

Traditionally I have covered the taxes for my Canadian customers.

This was why we started handing out "trade dollars" in our now closed shop, equal to sales taxes on purchases over $100 (and a few other instances) and useable on future purchases.

And sort of what Canadian Tire is doing electronically with CT Money.

You've probably seen some of them at some point.

Are you going to be at CAPEX next week? DH will be at the Sparks Auctions booth. I am avoiding the whole thing.

reallynicestamps · ‎06-06-2022

@fbijocko

Reserve not reservation. (I used to work for IAND, sorry.)

products sold on a reservation

The product has to be delivered to the reserve address to be applicable. Again it's the location of the buyer, not of the seller.

In our Ottawa shop we ran into this question fairly often, with both status cards or diplomatic exemptions.

Most people realized that it would be easier to claim their paid taxes back rather than trying to put it onto the back of a dozen small businesses every day as they went about their daily messages.

Not everyone who lives on reserve has status and not every status person lives on reserve or has an address on reserve.

ricarmic · ‎06-06-2022

@reallynicestamps re CAPEX no I won't be attending unfortunately.

fbijocko · ‎06-06-2022

When you are from the "Reserve" you call it the Rez. But from the paperwork I receive from my band office reserve and reservation has been used interchangeable. Many shops that sell products on the REZ don't charge tax as I understand it they are not supposed to. I'm well aware that status and non status live both on and off of the REZ. I know this because I'm status and live off of the REZ.

gaming-canada · ‎06-06-2022

Hello,

velvet@ebay and jasmen@ebay how can this work for us who have registered with CRA and we remit GST/HST by Quick Method, and this selection is for full year. We have only 15-20% of our total sales on eBay chanel and we are registered for Quick method Gst/Hst remiting. Pst and Qst is not an issue but GST/HST we cant and wont be able to switch from Quick method. And Quick method saves us money. Amazon and Shopify store doesnt require this from us and we cant do separate remitance methods. Can you please clarify and is there number we can contact on eBay to discuss this?

lotzofuniquegoodies · ‎06-06-2022

@marnotom! wrote:
Hey, velvet@ebay, could you check with the tax team about whether sales taxes are going to be applied to the seller's shipping rate, too? If shipping charges aren't subject to tax on the transaction, I'm thinking that sellers who fold their shipping charges into the item price and offer "free" shipping may be at a competitive disadvantage.

Or has this been asked already?

Not sure if this is moot or taxes tripping over taxes but NO tax should be applied to US/Intl shipping. Tax is only applicable to Domestic(CANADA) shipped/sold on dot ca. US Example attached.

-Lotz

basjo-97 · ‎06-06-2022

I received the email for the July 1st change earlier today. I am a buyer in Ontario. Will I be charged HST (in addition to the current import duties/fees) on purchases made from US eBay sellers? Or does the HST only apply if I purchase from a Canadian seller?

Thanks in advance for the clarification and sorry if this has already been asked.

marnotom! · ‎06-06-2022

@basjo-97 wrote:

I received the email for the July 1st change earlier today. I am a buyer in Ontario. Will I be charged HST (in addition to the current import duties/fees) on purchases made from US eBay sellers? Or does the HST only apply if I purchase from a Canadian seller?

In theory, "casual imports" such as eBay purchases are subject to HST and duty (if applicable) if sent by mail and are valued at over C$20. The rub is that Canada Border Services is very lax about enforcing this limit and collecting through Canada Post the money owed.

The tax/duty-free limit for items from the US and Mexico sent by courier is C$40 for HST and C$150. The amount owing may be folded into the shipping charge, collected at the door, or collected after delivery

The "import charges" you see on Global Shipping Program items include an estimate for HST and duty (if applicable), amongst other things.

janetbargainboutique · ‎06-07-2022

Again, I have sent 2 posts witout a reasonable response from eBay or its employees.

I am a reseller and I pay tax when I buy goods. Since I have registered with CRA, I collect the tax when I sell an item on eBay from the buyers.

That is the whole purpose of registering with CRA to collect the tax and offset with paid tax.

I can not use input tax credit for the tax that I paid when I bought the item as like many others, have no way of using input tax credit for other business activities.

Now my question from eBay is how am I supposed to pay HST when I buy an item,but not been able to cover that cost from buyers?

Why eBAy simply do not consider the concept of registring with CRA and what are the requirements and obligation of registering with CRA?

This is the exact wording from CRA:

"

If you decide to register voluntarily, you have to:

charge, collect, and remit the GST/HST that applies on your taxable supplies of property and services
file GST/HST returns on a regular basis"

Is this wording unclear for eBay when it says I HAVE TO charge,collect an remit HST from my buyers?!

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/account-re...

55-yard-line-sportscards · ‎06-11-2022

Of course eBay isn't going to give you a reasonable response. Why would they explain how they will simply be scamming more money from sellers as of July 1 by charging fees on taxes that are between the buyer and the government, not the seller and the government because the seller is not or is no longer collecting them? Why should we pay fees on sales taxes eBay is collecting for the government? Charge the **bleep** governments the fees for collecting the taxes for them. eBay has yet to provide anyone with a reasonable response to this question either. And it's not like it's difficult to set theire computer systems up to exclude the taxes from FVF calculation. Anyone who knows how to use Excel could do it in about 6 seconds. But why would eBay do that when greedy, lying eBay execs like Brian Burke can pocket more in profits and bonuses by scamming sellers for fees on sales taxes they have nothing to do with?