Tax not charged on sale

[flipistics]

I had a sale this morning where no tax was charged. The item was in the DVDs category (and was a movie). The listing was on eBay Canada. The item location is correctly set in Canada. I'm in Canada. The shipping address is to a Canadian address.

The only thing I can think of is that maybe the buyer has a tax exemption, but I was under the impression that eBay hadn't implemented that yet. Does anyone know if that has changed? Is there a new bug? I assume if a bug is responsible that eBay deals with it (I am HST registered, and filled out and received the countersigned election form)?

[lotzofuniquegoodies]

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@flipistics wrote:

I had a sale this morning where no tax was charged. The item was in the DVDs category (and was a movie). The listing was on eBay Canada. The item location is correctly set in Canada. I'm in Canada. The shipping address is to a Canadian address.

The only thing I can think of is that maybe the buyer has a tax exemption, but I was under the impression that eBay hadn't implemented that yet. Does anyone know if that has changed? Is there a new bug? I assume if a bug is responsible that eBay deals with it (I am HST registered, and filled out and received the countersigned election form)?

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@flipistics 

From a google search this came up for dot com. If that is the case it is not well known for buyers.

eBay's Buyer Exemption program for sales tax

If you are a tax-exempt buyer, we have a buyer exemption system that allows you to submit sales tax exemption certificates to eBay and make purchases without paying sales tax. Alternatively, you may be able to get a credit for sales tax paid to eBay directly from your state.

https://www.ebay.com/sellercenter/resources/tax-information

Page does not exist on ca that I could find.

Discussion from 2020 on ca on the subject thas is now closed.

https://community.ebay.ca/t5/Seller-Central/Tax-Exempt-Canadian-Buyers-Is-it-correct-that-they-need-...

-Lotz

[pjcdn2005]

I believe that is for US sellers who have a resellers certificate. If they are purchasing something for their business, they don't have to pay tax.    Canadian sellers can get their tax from the government so I doubt that ebay.ca will implement that here.

I had my own business for years and buyers who were tax exempt still paid tax and had to collect it from goverment.  I think that is the norm though perhaps there are exceptions.

[pjcdn2005]

Out of curiousity, which province are they in?   Was the listing on .com or .ca?  It should be charged on either but again, just curious.

[flipistics]

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@pjcdn2005 wrote:

Out of curiousity, which province are they in?   Was the listing on .com or .ca?  It should be charged on either but again, just curious.

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.ca, and they're in Newfoundland.

[darak10]

interesting...I noticed a few maritimers incl NF'lander buyers where it did the same, missed charging them part of the tax (but not all)....I think theirs is harmonized.  Not sure why, I concluded it was a glitch on their part. 

[darak10]

it likely doesnt exist on .ca as in Canada that GST any buyer pays who has a business reselling that has a GST number and/or who claims what they buy to resell uses the GST as a tax credit to write down what they need to remit in GST at the end of the year.  Its already technically its own 'tax exemption' program up here.