HST charged on US sales

[murphcrud]

How can eBay charge us HST on sales that we make to a US buyer???

Through my regular business, Non eBay,  I sell a US customer goods manufactured in Canada, that are drop shipped  from my Canadian supplier.    My supplier does not charge me HST and I inturn do not charge HST to my US customer.  Free Trade.

So what gives with eBay??  Have they got this wrong thinking that all sales, no matter destination, are HST taxable?

[marnotom!]

It sounds to me as though you’re referring to the HST that eBay is required to charge on your Final Value Fees. This charge has been in place for years and is dependent on your location as a seller, not the buyer’s location.

If I’m off-base here, let me know.

[murphcrud]

This HST that eBay charges has only come into effect as of July 1/22.  I'm not sure what you are talking about.  I believe that you are incorrect as to "location as a seller, not the buyer’s location."    I believe that it is the exact opposite

[marnotom! · Accepted solution]

The HST charges that came into effect at the beginning of the month are on buyers’ purchases. The HST charges that I believe you’re seeing on your sale to a US buyer are on your Final Value Fees. eBay has been required to charge GST/HST on sellers’ Final Value Fees for the past five or six years.

eBay wouldn't charge you HST on what your buyer pays.  

[marnotom!]

Was your US buyer charged state (and possibly local) sales tax on their purchase from you?

[murphcrud]

You are correct about the taxes charged to us, they are based on eBay fees which are  goods and services.  My mistake.

The tax eBay charges to Canadian buyers is the applicable tax of the buyers province, not the sellers.  In the case of Canadian sellers who sell to US customers, no HST is chargable by eBay to the buyer.  

If the State has chosen to charge buyers a sales tax, eBay collects that amount directly from the buyer.  

The beef that some sellers have against eBay, is that they are collecting HST for some non taxable items, including silver and gold bullion coins or other.  It seems that eBay does not distinguish one item from another and generalizes the HST Application for all of these items.

Anyway, my issues have been resolved ----- I think.