How We Got Here

[marnotom!]

Interesting reading from the Federal Guvmint website:

https://www.budget.gc.ca/2021/report-rapport/anx6-en.html#application-of-the-gst-hst-to-e-commerce

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-ec...

[lotzofuniquegoodies]

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@marnotom! wrote:

Interesting reading from the Federal Guvmint website:

https://www.budget.gc.ca/2021/report-rapport/anx6-en.html#application-of-the-gst-hst-to-e-commerce

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-ec...

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This part is definitely interesting.

Threshold Amount Determination

Under the proposal for cross-border digital products and services, a non-resident vendor or distribution platform operator with sales to consumers in Canada that exceed, or are expected to exceed, $30,000 over a 12-month period is required to register for the GST/HST under the simplified framework and charge the GST/HST on their sales. Budget 2021 proposes an amendment to the proposals to clarify that supplies of digital products or services that are GST/HST-free (i.e., zero-rated) are not included in the calculation of the threshold amount for determining if a person is required to be registered for the GST/HST under the simplified framework.

Skimming through that info gives one a major headache. Not entirely sure how it simplifies anything. But that's how they got there...So has everything been finalized? (Most of that was dated 2021).

And how well be anything paid on behalf of seller be documented so both parties are on the same page? Will it clearly express any tax refunded for cancelled transactions or partial refunds? To me sounds like an accounting nightmare.

-Lotz

[marnotom!]

Methinks this could use a little bump.

[6guitars]

Whatever they call it and whomever applies these taxes, it absolutety outrageous. My buyer is paying tax on an item that I bought used 10-15 years ago. It is totally unfair. I wish that bsomeone could start a class action lawsuit against the Governments involved.

[marnotom!]

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@6guitars wrote:

My buyer is paying tax on an item that I bought used 10-15 years ago. It is totally unfair.

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How is it unfair?  For what it's worth, the official word is that the tax is being applied to the transaction, not the item.

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@6guitars wrote:

 I wish that bsomeone could start a class action lawsuit against the Governments involved.

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On what grounds would we have to file a lawsuit?

Real-life transactions on used items have been subject to taxes for a long time now.  Most provinces have purchases of used vehicles taxed, for example, even those from private individuals, and purchases of used items from commercial retailers such as Value Village are also subject to tax.

I have a feeling that if that guitar were being sold in a Long and McQuade showroom, tax would have to be charged on its purchase.

[reallynicestamps]

Not only does this store charge tax on used goods, all of the goods they sell are donated so they have no overhead at all.

How dare they!!
/sarcasm

[mrdutch1001]

IF you had read and understood the Canadian Taxation law as it pertains to taxation on marketplace faciiltator sites, then you'd have no reason to say "Whatever they call it and whomever applies these taxes,"...and if you had given any thought to the statement"  I wish that bsomeone could start a class action lawsuit against the Governments involved.", then you would also know that countless others have come here with that same absurb suggestion, but NOT ONE has returned to the forums with any follow-up and/or any "success" to any such suggestion >as like you , everyone wants "someone" to take that inititative, just not them, not you...and of course there is no one out there that is willing or capable of doing so...Best to know the law before making baseless comments..