Ebay Collecting Sales Tax on Sales from Unregistered Sellers

[thrustanparry]

My annual sales volume doesn't qualify me for a registration number.

Will I now be able to claim all sales/business expenses on my personal income tax filing?  Is CRA going to give me a number anyway?

[reallynicestamps]

If you are registered to collect sales taxes, talk to your accountant or ask her for a recommendation to an accountant who has experience with online selling

Remember that you are not selling in a single province, as most B&M shops do, but in an international one.

US sellers in your situation (although without a federal sales tax) seem quite happy that eBay has taken over the onerous job of calculating sales taxes for 50 different jurisdictions. 

Boy do I miss our retired accountant/seller @pierrelebel.

[pjcdn2005]

That may be part of the information that eBay says will to sent to registered sellers.

[ricarmic]

@tryubik-useonlyasdirected 

I'm a paper form kinda guy still my 1217 form has the ITCs on line 108.

As I currently (perhaps incorrectly) see it, this situation will be no different than if a Canadian seller sold ONLY to US folks (ie zero rated sales). If I sold $10,000 to ONLY US (zero rated) folks my sales are $10,000 but ZERO GST/HST acquired, however I still acquired ITCs buying to sell, which I would get a 100% refund for (line 109 on my form as a wee box for a "-" sign which translates into a refund)

Perhaps the upcomming "billing agent authorization" forms process will help explain stuff so we know how to apply it. Time will tell.

[wilsons_r_us]

These comments are very helpful.  I'll be registering asap, thank you for explaining.  I was going to wait until sales were higher but why?  I'm paying HST and selling to USA so no brainer to have this on record sooner.

[flipistics]

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@wilsons_r_us wrote:

These comments are very helpful.  I'll be registering asap, thank you for explaining.  I was going to wait until sales were higher but why?  I'm paying HST and selling to USA so no brainer to have this on record sooner.

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Remember that if you register, you MUST collect the tax (or the marketplace must collect and remit it for you with the proper documents signed) when you sell items within Canada on ANY venue including local sales, FB, etc.

[reallynicestamps]

ZOMBIE THREAD FROM 2022.

Theproblemwith zombiethreads is that the information may be out of date and no longer accurate.

Better to start a new thread.

I was going to wait until sales were higher but why? I'm paying HST...

Even without registration, the taxes you pay on items for resale are deductible.

Since you will still be paying fees on sales taxes outside your province, there is no urgency about registration, unless you are using eBay as part of a much larger business.

I believe it's $30,000 gross income annually from sales before you are required to register.