Hi ebay, and on behalf of all sellers in Canada that sell either exempt or 0% rated items in Canada. Firstly, we all notice that you are helping yourselves to final value fees on pass-through sales taxes. We don't love it.
Here is the issue that must be corrected, because, shockingly, you have no idea how to do things right the first time.
In Canada, we have both "exempt" and "0%" sales tax categories. I would suggest researching with the Canada Revenue Agency before July 1st, but it's too late for that.
What this means is that, as of July 1st, you are charging sales taxes INCORRECTLY according to Canadian law.
We still REQUIRE the "charge sales taxes" on/off button on your site.
Why? Well, if we sell something that is exempt or 0% taxable, you will incorrectly charge the buyer sales taxes of, let's call it $130. Firstly, as sellers, you take your final value fees on an amount that shouldn't be charged which hurts all the sellers that fund you. Secondly, you are not following Canadian tax law by charging this amount. You claim you'll remit it.... are you going to provide any proof of that? I can already see the audits you will put your sellers through by charging and remitting incorrectly and having little or no proof of this...
Thank you for complicating something that was fine.
The easiest solution is to allow sellers which are REGISTERED TO COLLECT ALREADY to handle it as before. It's very simple to verify if we have a valid sales tax account. You still take your generous fees but at least we will be able to charge Canadian sales taxes correctly.
I wholly do NOT elect ebay to handle taxes on my behalf. No thank you.
