One more time, an unwise decision from ebay

[janetbargainboutique]

The News say ebay wants to collect tax. Which is rediculous.

I am registed with CRA and I am responsible for remitting sale tax. When I buy goods to resell it later, I pay tax at the time of purchase. 

When I sell the item to a buyer later, I collect the tax and offset it with the tax I paid during purchase. So, Basically I do not pay tax for the item that I sell.

Ebay is ignorant and do not understand the fact that the end user is supposed to pay tax and not reseller. If Ebay does not allow me to collect the tax and offset my paid tax, then I , as a reseller , am paying tax which is basically different with the GST and HST. 

I wish someone wise and thoughtful was making the decision with basic knowledge of tax system. 

I will remove my store if eBay deprives me for offsetting my paid taxes,

 

[pjcdn2005]

It's my understanding that the Canadian government makes the tax collecting laws.  I doubt that ebay had any input in their decision requiring marketplaces to start collecting tax.  They've had to do it for US sales for the last couple of years a for a few other countries as well.

I'm not yet sure how it is going to work but there should still be a way for gst registered sellers to collect back the tax  paid on business supplie and purchases that you bought for resale.  

[mrdutch1001]

and one more time, this new taxation IS NOT eBay's doing...This is a Canadian tax law that is being implemented.

this taxation process is NOT about sellers and only relates to sellers in that the FVFs will include paying the FVF percentage rate on the TOTAL transaction, including the sales tax that the buyer has paid.

this is taxation on transactions of online sales, and it is the buyers that are paying the sales tax. It does not matter where the seller is located- the taxation is based on the buyer's location.

It is the BUYER that pays the sales tax according to the %age sales tax of their province.  BUYERS pay the sales tax on the sales transaction.Sellers will pay their fees on the TOTAL transaction.

This Canadian taxation process is really no different than the "internet taxation" as applied in the USA by 45 state gov'ts, whereby buyers pay that USA "internet sales tax" based on their state's sales tax % and sellers pay their fees on the TOTAL transaction, which includes paying fees on the applied taxes. The Canadian taxation process is also applied to the TOTAL transaction, whereby the taxes are paid by the buyer, but the seller will pay the fees on the TOTAL transaction which includes paying the applicable fees on the new taxation process...

One more time, this is NOT about eBay...This has already been  taken to Amazion, Etsy and soon to follow will be other selling platforms...

[ricarmic]

There has been a fair bit of discussion regarding the ITCs (the tax you paid when you purchased the items for resale etc that you get "back" when you remit).

Today if you sell to someone in the US it is zero rated, ie no taxes are collected from the buyer, however the taxes you paid when purchasing it before selling to the person in the US you get back because the original taxes are ITCs.

After July 1st when we sell something on eBay it will likely work something like zero rated sales today, the ITCs are still there. How it gets reported appears to be up in the air. What will be interesting is how CRA reacts to situations where someone has 100% of their sales on eBay, and are getting a 100% refund of their ITCs.