How can we access report for tax that we paid on shipping labels in order to claim for ITC credit

[gaming-canada]

How can we access report for total tax that we paid on shipping labels which we purhased through eBay in order to claim for ITC credit?

Whatever tax we paid on shipping is eligible for ITC (input tax credit) refund. However eBay doesnt have any available report on this. Does anyone have any knowledge or has contacted eBay in regards?

[busybeas_books]

The question is does eBay pay GST on the postage it buys from Canada Post?  

GST should be based on what province the package is going to.

This Canada Revenue page allows you to calculate the tax.

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

What are the legalities of us (Canadian sellers filing for GST refunds) using these as ITCs without any upstream paperwork to prove the taxes were paid by eBay?

[phc64]

On our monthly eBay 'tax invoice', the 'shipping fees' are indicated as a 'non-taxable amount'. What I do not understand is whether this means the amount includes applicable taxes or whether the amount is not subject to tax. It would be really nice if someone from eBay could provide us with an explanation.

[lotzofuniquegoodies]

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@busybeas_books wrote:

The question is does eBay pay GST on the postage it buys from Canada Post?  

GST should be based on what province the package is going to.

This Canada Revenue page allows you to calculate the tax.

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

What are the legalities of us (Canadian sellers filing for GST refunds) using these as ITCs without any upstream paperwork to prove the taxes were paid by eBay?

---

@phc64 

@busybeas_books 

@phc64 

GST would be/is  applicable on any shipments within Canada. Just like when an eBay seller buys stamps including parcel postage at the counter. (That would even include the folks who buy stamps in bulk/online and we know who they are.  🙂 )  The big problem is the documenation of any tax and even any discount/fuel surcharge for that matter because neither are physically as it is relayed by eBay.

Note: GST is not applicable for any international shipments. (Unless the shipment had to be moved by a 3rd party within Canada before leaving Canada. See link below.) It applies the same way to couriers/trucking companies.

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

How the GST/HST applies to freight transportation services

It is important to know whether a supply of a freight transportation service is subject to the GST/HST and if so, at which rate.

Find out if you need to charge the GST/HST

To know if you need to charge and collect the GST/HST, you need to determine:

• The tax status of the services and expenses
• If the freight transportation service has an interlining agreement
• If property and services you provide are incidental to, or part of, a freight transportation service
• If other freight and miscellaneous charges apply

Taxable supplies (other than zero-rated)

This means that:

• you charge and collect the GST/HST on the supplies that are made in Canada
• you may be eligible to claim ITCs to recover the GST/HST paid or payable on purchases made to provide those supplies

If you provide a freight transportation service that takes place partly outside Canada, but both the origin and destination are in Canada, it is considered a domestic service.

Most domestic freight transportation services (services that originate and terminate in Canada) are subject to:

• the HST for destinations within the participating provinces
• the GST for destinations in the rest of Canada

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Unfortunately Canadian eBay sellers have been asking for a clear explanation from eBay for months but one has never arrived. The only reason it's so messy here  on eBay is because eBay is the one charging/billing for the service. The joys of intermediaries. 

-Lotz

Note: Info between *** is from the Government of Canada website.