Tax collection already started as of June 4th?!?!?

I have decided to make one big sale before eBay starts collecting taxes. I've received msgs that this would start on July 1st but when I look at my sales, I see that I have already been charged for both taxes on top of all the fees that eBay charges us. Why did it start before? Ain't that illegal???
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Re: Tax collection already started as of June 4th?!?!?

marnotom!
Community Member

Illegal?  I doubt it.  The legislation took effect last year and online marketplace facilitators have had up to 1 July 2022 to comply.

 

What province was the item being shipped to?  And are you sure you're not looking at the taxes that are applied to FVF (and have been for years)?  Remember, this legislation affects sales taxes being applied to the transaction price and are paid by the buyer.

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Re: Tax collection already started as of June 4th?!?!?

At the end of the day, in effect, if you're a small-supplier/personal seller, let's say you're in Ontario and sell your dad's old fishing rod to someone in Ontario for $100 and deliver it yourself.

 

You'll pay ebay ~13% ($13) in fees, and they'll charge you 13% on their fee in HST (another $1.69). Starting July 1st, ebay will charge the buyer 13% HST too, so they'll pay $113 for your $100 item, for which you'll get about $85.30. 

 

In total, that $100 transaction will generate $14.69 in HST that ebay will helpfully pay CRA for everyone involved. 

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