Ebay.ca charging tax....I live in Canada so if I buy from the USA on eBay will I be charged HST?

[marnotom!]

My understanding is that the usual processes of charging and collecting HST on casual imports is still in place, meaning that it’s buried in the “import charges” on an item forwarded by the GSP, possibly (but not likely) assessed and charged by CBSA for items sent by mail, and handled by other carriers in various ways depending on the shipping method.

My current hypothesis is that this will change on eBay to what you’re describing, but it may take a while to implement.

[reallynicestamps]

We have a duty-free allowance on purchases from the USA of s$150 and a tax-free allowance of $40.

For overseas purchases, I believe the allowances are still at the mid-80s level of $20 for both, but CBSA has a policy of ignoring very low value imports from overseas.

If the carrier charges the import fees, you pay them plus a service charge which varies from ~$5 for the GSP to over $25 for UPS and other couriers, or you don't get your purchase.

[ypdc_dennis]

If it is handled like the way ebay now collects sales tax for different parts of the world, then the answer is yes. As an example, an American who buys from me in Canada is charged sales tax by ebay depending on the state they live in.

But we will have to wait until July 1 to find out how it will actually work.

[ricarmic]

@ypdc_dennis I could be wrong, but this phrase in the announcement "for all sales of tangible goods sold within Canada" would say to me that someone buying something from the US who is in Canada would not be charged GST/HST because that would not be "within Canada".

As with many things, time will tell. 

July is going to be a frustrating month from many perspectives it seems....

[brettjet38]

If you live in Canada and purchase anything online here or in another country you will be charged your local taxes...

...so in Quebec that would be 5% and 9.975% on every purchase.

[reallynicestamps]

someone buying something from the US who is in Canada would not be charged GST/HST

Better tell CBSA then.

Sales taxes are part of the import fees that are charged on imports. Only the amount of the duty and tax free allowances have changed over the centuries.

[ricarmic]

@reallynicestamps well that is a good point, although it would mean there is no tax free allowance anymore for stuff coming across the border, and as someone raised in another thread how will we avoid being double taxed as it comes across the border?

I also see my bigger mistake was counting on and trying to interpret the ebay wording at this early stage.

On a related note, I've also been observing for my buyers from the UK for example some pay their VAT some don't. I've not noticed any rhyme nor reason regarding that, ie size of purchase doesn't factor in, and for a given repeat buyer, sometimes they do pay, sometimes they don't. I've also seen other European countries with sometimes paying sometimes not. 

It will be interesting to see if the same inconsistency happens with the Canadian stuff.

[ricarmic]

Hey @reallynicestamps  I think I might have been vindicated!

I noticed this comment in a separate thread back from the eBay tax team:

The question about declaration only applies to imports/exports from Canada and the GST/HST/QST/PST would not be collected by eBay on imports of physical goods from outside Canada.

This would lead me to believe that my interpretation of "within" was correct, it has to be a buyer and seller within Canada for taxes to be applied. In reference to: "for all sales of tangible goods sold within Canada"

However I've thought I was right before when I wasn't......