eBay

gatewestcoins · ‎05-05-2022

We are a GST registered company. We just want to confirm that by providing our company tax IDs we will be exempt from this program as we already submit our own taxes and we have no way to separate the taxes out of our systems for Ebay. Anything sold in Ebay is processed through our system and then we pay our own taxes. Anything put through our system has to have taxes paid by us, and anything sold has to be put through our system before shipping. If there is no way to exempt registered dealers we will have to restrict our sales on Ebay to solely tax exempt products.

marnotom! · ‎05-05-2022

Even though it's become more of a discussion board and a bit of a gong show, I'd post your query on the "Questions" thread to make sure it gets on the radar of the eBay reps for the Canadian discussion boards.

https://community.ebay.ca/t5/Canadian-Sales-Tax/Canadian-Sales-Taxes-Questions/m-p/478117

I should add that if you sell on other platforms, odds are that this is going to be an issue on those platforms in the future as well.

femmefan1946 · ‎05-05-2022

jasmen@ebay

velvet@ebay

marnotom! · ‎05-05-2022

@gatewestcoins, it looks as though some--though not all--your concerns have just been addressed on this thread:

https://community.ebay.ca/t5/Canadian-Sales-Tax/EbayCollecting-Canadian-Taxes/m-p/478212

femmefan1946 · ‎05-06-2022

The question seems to be answered in the email we got today.

Effective July 1, 2022, for all sales of tangible goods sold within Canada, eBay will be collecting the Canadian sales taxes (GST/HST/QST/ PST) from Canada-based buyers on behalf of Canada-based sellers (irrespective of registration status) and remitting the tax to the appropriate tax authorities.

For sellers not registered to collect tax with the CRA and provinces, there is no action necessary. You will begin to see sales taxes charged and collected by eBay on buyer purchases beginning in July. eBay collected taxes will also be displayed in your seller reporting as of that date.

For GST/HST and/or QST registered sellers, eBay will be appointed as a billing agent for collection and remittance of Canadian sales taxes where the sales tax laws do not automatically require it. As such, eBay will require completion of billing agent authorization forms. A separate communication for GST/HST and QST-registered sellers will be forthcoming.

With this change in sales tax collection responsibilities, eBay aims to alleviate our sellers of the administrative burden to accurately charge and collect sales taxes on taxable sales made through the platform. eBay is taking over this responsibility for all sellers – not just those that are not registered – in an effort to simplify the experience for our community. Any questions or concerns about tax collection will be handled by eBay Customer Service.

ricarmic · ‎05-06-2022

I think their problem might be misunderstood.

I believe OPs problem is that their own outside eBay customer management systems/application won't let them process a Canadian transaction without taxes being added by them. They like me have customers outside ebayland which the new changes will not apply to.

I'm actually in the same boat. My application I use to manage my customers and provide receipts doesn't currently have the option to have a Canadian customer without any taxes being applied. So to continue using my appliction I'm going to have to make coding changes. I'm lucky because I built those applications (in 1994!!!!) but I can still keep them going if I have to.

A company that has acquired or had software built by others has a much bigger problem (and cost BTW) to get changes like this implemented in just under 2 months.

I believe their hope is that there will be an option to opt out of the July 1 change. I have not seen anything that says that will be a possibility.

historymakingames · ‎06-19-2022

There is also the issue of prices increasing. As a seller from Alberta, we do not have a PST and due to the fact that I am Alberta based only, do not have to charge PST to any Provice not enroled in the HST. eBay is to collect PST so the net effect to my customers outside of Alberta will be a substantial price increse which will not show on my own site. Thus encouring more migration away from the eBay platform.

marnotom! · ‎06-19-2022

@historymakingames wrote:

There is also the issue of prices increasing. As a seller from Alberta, we do not have a PST and due to the fact that I am Alberta based only, do not have to charge PST to any Provice not enroled in the HST. eBay is to collect PST so the net effect to my customers outside of Alberta will be a substantial price increse which will not show on my own site. Thus encouring more migration away from the eBay platform.

Migration to where?

This is a federal (and provincial) government requirement, not an eBay initiative. Some digital platforms have had this in place for a while, as the official date when this took effect was July 1, 2021.

Keep in mind that a very similar taxation scheme has been in place for most of the United States for two to three years now (depending on state/jurisdiction) but purchases from out of the country are also affected. Your US buyers have been paying state and local sales taxes on your items for a while now. In addition, some/many of your buyers from Europe, the UK, and Australia have been paying VAT/GST on their purchases from you that has been collected by eBay.

You can look at it as a "price increase" if you wish, but it's not something unique to eBay or Canada.

reallynicestamps · ‎06-19-2022

Alberta based only, do not have to charge PST to any Provice not enroled in the HST.

Could you show where that is published?

It gives a huge advantage to Alberta sellers if they only have to charge GST to BC or QC customers.

Remember YOU are not charging the sales taxes.

EBAY is charging the sales taxes -- based on the buyer's location.

the net effect to my customers outside of Alberta will be a substantial price increse which will not show on my own site.

And on every other online seller in Canada and the USA.

Your American customers have been paying Internet (state) sales taxes for a couple of years.

While those taxes don't show in on our listings, they will appear when the buyer gets his invoice.

As with the US tax,eBay calculates, the buyer pays, eBay collects and remits, and because the money passes through our account for a few nano-seconds, we pay FVF to Managed Payments on the whole payment which includes FVF on that tax.

Which is both annoying and Standard Practice with payment processors. We were paying fees to Moneris, who supplied credit card services to our shop from the late 70s until we retired.

It has been said that the FVF on these Internet Sales Taxes is worthwhile because of the immense labour in learning and applying 65+ different rates. Perhaps.

marnotom! · ‎06-20-2022

@reallynicestamps wrote:
Alberta based only, do not have to charge PST to any Provice not enroled in the HST.
Could you show where that is published?
It gives a huge advantage to Alberta sellers if they only have to charge GST to BC or QC customers.
Remember YOU are not charging the sales taxes.
EBAY is charging the sales taxes -- based on the buyer's location.

I think @historymakingames is referring to how they are currently handling provincial sales taxes, not how eBay will be handling them in a couple of weeks.