Canadian buyer tax issue

[warcraftwarehouse]

I am buying used comics and being charged HST from people who don’t own a business doing this and do not collect HST. Is there anyway for me to write down this HST without having a business of my own??

Also I don’t understand how I buy something used from someone not collecting sales tax who paid tax on the item new and now I’m paying tax on that same item as used.. that means the government is getting the HST twice and if I sell it then it gets the HST three times…!

[mrdutch1001]

It matters not whether the seller is GST/HST/PST registered, eBay is required by law to collect these taxes..this is not an eBay thing, nor is it unique to eBay(other online marletplaces such as Amazon, Etsy,etc. are required to collect these taxes...this is a Canadian taxation law....and this taxation encompasses most categories of USED goods as well as new. Second hand stores,etc. have been charging tax on used goods for years now,just as any GST/HST/PST seller was supposed to have been charging these taxes as well...

It was just recently that the law was implemented for the online marketplaces like eBay ...it is the law and just like eBay, sellers are required to abide by the laws involving taxation.

[flipistics]

The short answer is no. To get the taxes back you'd have to be First Nations or own a business (and they'd have to be purchased for business purposes). It's really no different than if you purchased something at Value Village or somewhere similar. They have to charge the tax too even though it's a used item.

Some books qualify as only being charged the GST portion of the HST, but I don't think comics are included in most cases.

[warcraftwarehouse]

So if I sell an item I bought off eBay can I then write off the tax I paid for it without owning a company??

[reallynicestamps]

There is GST on used goods. Provincial taxes on used goods may vary.

Only those registered collect and remit taxes can use the sales taxes they pay as deductions from the amount they remit.

The tax is not technically on the goods but on the transaction.

That's why the tax is a sales tax .

You haves been paying taxes on used goods for years. Some businesses hide it and include it in the price. This is actually allowed with the GST, but when K-Mart tried doing this (effectively raising the cost of their products by 7%) they lost business to Zellers and Woolworth's who made GST a line item.

Not that not only is this receipt for used goods, but also from a registered charity.

To get the taxes back you'd have to be First Nations

Not only First Nations, but have a status designation AND live on reserve. Urban indigeneous are liable for the taxes.

So if I sell an item I bought off eBay can I then write off the tax I paid for it without owning a company??

Not exactly.

You would have to be registered to collect the tax yourself.

Being a business is neither here nor there, although businesses would register as part of their business model.

[warcraftwarehouse]

Well I can setup A sole-proprietorship for my collectibles and register for HST without being over $30,000. That should effectively give me the opportunity to get the HST back paid on these collectible items and when I do sell some of my own id have to then pay federal tax of 12.5%. For the items that go Kijiji or marketplace you could effectively write at a “loss”.

[mrdutch1001]

Am Not an account, not a lawyer, not a business, not familiar with what CRA requires for specific situations, so am not able to offer any answer or any advice about the legal implications or any legalities relating to your query/your situation...