I asked the question directly to the appropriate BC Gov department. In summary, yes ebay will collect the sales tax on my behalf. Here is their comprehensive response which I hope others will find useful:
Thank you for your inquiry.
Effective July 1, 2022, marketplace facilitators (e.g., eBay) must charge and collect British Columbia (BC) provincial sales tax (PST) on taxable sales and leases that they facilitate through an online marketplace. Also, marketplace facilitators must charge PST on online marketplace services they provide to sellers. Marketplace sellers are not required to register and collect PST on these sales if they are only selling through online marketplaces.
Marketplace facilitators must register to collect and remit PST effective July 1, 2022, if they facilitate a marketplace seller’s retail sale of:
- goods that at the time of sale are located within Canada and are sold to a person in B.C.,
- software for use on or with an electronic device ordinarily situated in B.C.,
- accommodation in B.C., or
- taxable services, other than accommodation, to a person in B.C.
A marketplace facilitator is a person who:
- operates, owns or controls (solely or jointly) an online marketplace,
- through the online marketplace, facilitates a marketplace seller’s retail sales of goods, software or taxable services, and
- collects payment in respect of the retail sales of goods, software or taxable services
A marketplace seller is a person who, through an online marketplace, sells goods, software or taxable services.
A marketplace facilitator is required to register and collect PST on taxable transactions that are facilitated through the online marketplace; therefore, the marketplace seller is not required to register and collect PST on these sales. However, marketplace sellers remain jointly and severally liable for any PST not collected and remitted by the marketplace facilitator. Marketplace sellers are required to register to collect and remit PST on any taxable sales of goods, software or taxable services they make outside of the online marketplace (e.g. through their own website or physical business location).
Therefore, effective July 1, 2022 eBay will be required to collect and remit PST on the sale of your goods to customers in BC if the criteria outlined above are met. Effective July 1, 2022, you will not be required to register to collect and remit PST on the sale of your goods to customers in BC if you are only making your sales through eBay. If the eBay-facilitated sales are the only sales you are making to customers in BC, then you will no longer be required to be registered.
You can apply to close your PST account by completing the Request to Close Provincial Sales Tax Account (FIN 357) form and submitting your application to the ministry using the options listed on the form. If you are registered for eTaxBC, you can submit your closure request online using eTaxBC.
If your application is approved, you will be notified by letter that, effective the date of the letter, your PST account is closed. You must collect PST as required and remit all returns until the effective date of your account closure as set out in your letter of cancellation.
As you are registered you are required to file NIL returns after July 1, 2022 as eBay will be charging, collecting and remitting the BC PST on your behalf. If you are only making sales through a marketplace facilitator you may choose to close your PST account. However, you may choose to remain register and file NIL returns for each period.
For additional information on marketplace facilitators, please see Bulletin PST 142, Marketplace Facilitators, Marketplace Sellers, and Online Marketplace Services.
More information on British Columbia’s PST, including registration, and collecting and remitting the PST, can be found in a series of PST Bulletins and Notices, and the Small Business Guide to PST. Our Forms Page contains exemptions certificates and forms related to registration, applying for a refund, and self-assessing the PST.
For additional information, including free interactive webinars, informational videos and upcoming events, please visit the PST Outreach webpage. To receive updates about legislative changes and new public information, please “Subscribe To Receive Updates.”
This correspondence describes how the Ministry interprets the relevant tax provisions at the time of writing for information purposes only. This response may be impacted by variations in circumstance, subsequent changes to legislation or Ministry interpretations or subsequent court decisions. The Ministry is not responsible for updating this response if there are any subsequent changes to the law or the Ministry’s interpretation of the law. This response is provided as an aid to understanding the legislation. To confirm the application of the legislation to your particular circumstances, you should consult the legislation and obtain independent legal advice.
Rulings and Interpretations Team
Ministry of Finance
In defence of ebay, this requirement is not of their making. The Canadian governments are just following a pattern already set in place in the US, UK and Australia who all have ebay collect their taxes.
