Canadian Sales Taxes - Questions

[velvet@ebay]

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!

[flipistics]

@low_flite  They've had issues with this from the start. The original email they sent had the address with them reversed and it caused all kinds of confusion. I mean, if it was me I would have just made the other address an alias and then it wouldn't have mattered which people sent it to, but I guess that would be too easy.

It took a while for me to get the countersigned one back (probably because of so many people sending them in initially), but they did date it for when we sent it in so there wasn't a problem.

[antipode]

I am a private seller selling a few items here and there. Definitely way under the $30K limit of having to collect GST. I have not sold for a few years, and recently made my first sale in a long while. If I understand correctly, eBay.ca deducted GST from my sale.  I am doubly confused:

1. I am not supposed to collect GST at all.

2. It's the buyer who is supposed to pay GST, and not me.

I tried researching the topic, and I'm so confused and overwhelmed, cannot find out a definitive anwer.

Is there a checkbox somewhere in my account that I can place for eBay not to collect GST from my sales?

Am I correct in understanding that eBay, instead of adding GST to my sale (to be paid by the buyer) charged ME for GST?

Many thanks!

[flipistics]

@antipode  eBay charges the buyer the tax. When you look at your transaction, the total value you see is the value including the collected tax. When eBay shows you how much you made, they deduct that. It isn't actually coming out of money you're due.

You cannot opt out of the collection. It is mandated by the government for most online marketplaces regardless of whether the seller is registered.

[low_flite]

UPDATE - I believe this should be the roadmap for others to follow. 

On Thursday, April 27, 2023 1:40 PM I sent an email to: Canada GST/PST CanadaGST/PST@ebay.com asking for them to confirm they have a GST506 for me.

On April 28, 2023 11:06 AM I heard from Mike Florkowski saying they do not, and sent the link to fill it out and send back to him: https://ir.ebaystatic.com/cr/v/c1/ca/pdf/Billing_Agent_Election_-_GST_HST_&_QST.pdf

[low_flite]

Friday, April 28, 2023 12:03 PM I sent it with my portion filled out with the period in question beginning on 1 Jul 22.

Today, May 2, 2023 11:41 AM I received the form back and signed by an eBay Director named Marsha S. Helm.

[low_flite]

All should now be in place with eBay.

Let's hope CRA stays happy.

Best of luck to everyone else.

[shingshing2007]

Has anyone filed a HST/get sales return for 2022 with respect to the new changes on eBay (ie eBay collecting and remitting sales tax on sellers ' behalf)? Do you report the HST/GST collected as usual, then report the amount eBay collected & remitted under HST/GST installment even though there's no balance under our own HST account? How do we properly report it without triggering an audit? I know eBay tells us to talk to tax specialists but this is a special case that not every accountant would know the proper approach to.

[allinthemindtreasures]

I am going through a CRA gst/HST audit and they have advised me that the billing authorization form I completed with you is wrong. It has surete Quebec on the top left corner and that form is for Quebec sellers only. The proper billing authorization form all other Canadian sellers should have completed is called gst506 on the CRA website. It has CRA on the top left corner. In order to be compliant and have my audit be finalized, CRA has demanded that I get the proper form filled out correctly. I have submitted this form via the pst/HST email and I have uploaded it to the document department. I have yet to receive this form back from the tax department. It appears that no one knows what I am talking about. Frankly this is becoming quite an issue with them and in turn for me. CRA is aware that your links are wrong and are looking at my experience to see how quickly you will resolve this very serious issue. (Very serious to them.) Please ensure that you send out a memo to all non Quebec residents who used the form in your links that they have to redo it, as they are not compliant with CRA’s requirements. Thank you!

[marnotom!]

Hey @allinthemindtreasures, I responded to you on this thread and attached a copy of the 506 that eBay was making available when the new sales tax requirements were announced in spring 2022.  I'm not sure where or how you got the one that you ended up using, but I think most sellers were using the one I attached to the other thread and so far there's been no reports of issues with that one.

[allinthemindtreasures]

This is the proper form; https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/gst506/gst506-22e.pdf

[atrebla_2]

I'm looking to buy a used camera within Canada.  I don't think used cameras are subject to GST when being sold as a personal use item.  Will I be charged GST regardless?

[mrdutch1001]

Dependent upon the province in which you live...PROV.TAX and/or HST WILL BE charged....

[marnotom!]

---

@atrebla_2 wrote:

I'm looking to buy a used camera https://pages.ebay.com/ca/help/policies/seller-protection.htmlwithin Canada.  I don't think used cameras are subject to GST when being sold as a personal use item.  Will I be charged GST regardless?

---

I just visited a Canadian photography equipment website that sells new and used items. I went through the preliminaries of going through Checkout and was shown 5% GST on the $1800 used camera I selected. (I’m in BC.)  I wasn’t asked if it was for personal use, and I doubt it matters.

EDITED TO ADD: This page is a little dated, but it does a good job of explaining that the nature of the seller or venue is a big contributor to the "taxability" of a transaction:

https://www.northernpolicy.ca/article/tax-implications-of-the-secondhand-economy-4065.asp

[atrebla_2]

The attachment mentions the situation I was thinking about- an individual (small supplier!) selling their old camera to me as distinct to me buying from an "estore".   

[marnotom!]

Keep in mind that page dates back to 2016, before legislation caught up to sales made through digital marketplaces such as eBay. If you’re buying directly from someone who’s not registered to collect and remit GST/HST, then there’s no tax on the transaction. But as of last year, if the sale is facilitated through a digital marketplace, the marketplace is required to ensure that taxes are charged, collected and remitted on that transaction.

(Sorry I messed up quoting your previous post.  Not sure how that happened.)

[canadacycles]

Sales on ebay.com are processed through ebay managed payments.     Sellers receive payouts that  are net of all fees and taxes, US State and HST/PST Canadian taxes where applicable (which they collect and remit to States and Provinces/CRA).     So the seller does not receive the taxes as they would before MP or in a typical physical sale.     So on my HST return I was unsure if I continue to deduct the HST/GST   EBAY  collects from my total ITC's ( HST/GST paid)?      Seems like If I do continue to deduct then there will be duplicate payments  to CRA.

[canadacycles]

Hi,   I was a bit confused by this also.   Did you get a correct answer?     I think you would ignore sales to Canada and continue to claim all your ITC's without deducting the HST/GST ebay collects.    Please let me know if possible.   - thx 

my original question:

"Sales on ebay.com are processed through ebay managed payments.     Sellers receive payouts that  are net of all fees and taxes, US State and HST/PST Canadian taxes where applicable (which they collect and remit to States and Provinces/CRA).     So the seller does not receive the taxes as they would before MP or in a typical physical sale.     So on my HST return I was unsure if I continue to deduct the HST/GST   EBAY  collects from my total ITC's ( HST/GST paid)?      Seems like If I do continue to deduct then there will be duplicate payments  to CRA."

[rozb35]

I bought a pair of shoes it came to 170$ American and with it converted it was $210 with $40 shipping how much do I pay when the shoes arrive and can I make that payment in cash?

[mrdutch1001]

Your payment to the seller here on eBay will muchly depend on from where the shoes are being shipped>> from within Canada? from USA? other International country? If this is an International shipment there may be import duties and taxes applicable.

[pjcdn2005]

You will have to check the Canada customs info to see if there will be duty.  The gst/hst rate will be the same as whatever it would be if you bought them at home.  Also, Canad Post charges a $9.95 fee if they have to collect duty and taxes.