Taxable item

[coins.4.fun]

How eBay would know if a specific item is taxable?

I'm selling coins. Some of them GST/HST taxable, some  are not.  Some are taxable PST in some provences.

Thanks.

[canadacoinchest]

If eBay collects tax on precious metals or tax exempt metals, expect lawsuits.

[coins.4.fun]

Well, as long as I'm a spectator, I don't mind the lawsuits.

😀

[brettjet38]

ONLY Bullion is Tax Exempt.

...a gold coin is not exempt and will be taxed.

[coins.4.fun]

You're wrong in your both assumptions. There are 2 criteria to determine the GST/HST taxation for coins: being legal tender and purity of the final product.

On a side note, would be nice to have some insight on this matter from jasmen@ebay or velvet@ebay.

[marnotom!]

---

@coins.4.fun wrote:

How eBay would know if a specific item is taxable?

I'm selling coins. Some of them GST/HST taxable, some  are not.  Some are taxable PST in some provences.

---

Likely the same way the GSP  creates its import charge estimates: from the subcategory the seller uses for the coin.  A coin categorized as "bullion" would be treated differently by the tax bot than a coin categorized as "Coins: Canada."

[lotzofuniquegoodies]

---

@marnotom! wrote:

---

@coins.4.fun wrote:

How eBay would know if a specific item is taxable?

I'm selling coins. Some of them GST/HST taxable, some  are not.  Some are taxable PST in some provences.

---

Likely the same way the GSP  creates its import charge estimates: from the subcategory the seller uses for the coin.  A coin categorized as "bullion" would be treated differently by the tax bot than a coin categorized as "Coins: Canada."

---

This is similar to how they charge a uniform/the same tax rate to all items sold in particular state. In many states items can have varying rates or be tax exempt. 1 rate cross the board...Easier for eBay. 

-Lotz

[coins.4.fun]

Being catgorized as "bullion" has nothing to do with sales tax rate.

[marnotom!]

---

@lotzofuniquegoodies wrote:

---

---

This is similar to how they charge a uniform/the same tax rate to all items sold in particular state. In many states items can have varying rates or be tax exempt. 1 rate cross the board...Easier for eBay. 

---

That's not what I'm getting at all, but if you want to go there, don't forget that the bot would have the buyer's postal code to refer to and would use that to calculate the taxes to apply to the purchase. 

[marnotom!]

---

@coins.4.fun wrote:

Being catgorized as "bullion" has nothing to do with sales tax rate.

---

Please elaborate.  This isn't my area.

[coins.4.fun]

Please see my post above, where I explain briefly the way of how CRA defines tax rates on precious metals and coins made using such metals.

P. S. Still trying to get some info from eBay

velvet@ebay

jasmen@ebay

[marnotom!]

---

@coins.4.fun wrote:

P. S. Still trying to get some info from eBay

---

I think it's going to take a while for our eBay liasons to get back to us.  They're US-based, new to the Canadian discussion boards and the "questions" thread they started is going to be tough for them to navigate as there's more than just questions in it.  They're probably going to be busy for the next few weeks with a lot of back and forth between them, eBay HQ and CRA.

[lotzofuniquegoodies]

---

@marnotom! wrote:

---

@lotzofuniquegoodies wrote:

---

---

This is similar to how they charge a uniform/the same tax rate to all items sold in particular state. In many states items can have varying rates or be tax exempt. 1 rate cross the board...Easier for eBay. 

---

That's not what I'm getting at all, but if you want to go there, don't forget that the bot would have the buyer's postal code to refer to and would use that to calculate the taxes to apply to the purchase. 

---

That bot will do the same thing in Canada. Charge the associated tax rate(GST/HST/PST) for the particular province even if the item purchased at a B&M store was tax exempt or at a lower rate. Why isn't that wrong? And they seem to be unable to even show their math with including the tax rates. (as part of each line item)

-Lotz

[lotzofuniquegoodies]

---

@marnotom! wrote:

---

@coins.4.fun wrote:

P. S. Still trying to get some info from eBay

---

I think it's going to take a while for our eBay liasons to get back to us.  They're US-based, new to the Canadian discussion boards and the "questions" thread they started is going to be tough for them to navigate as there's more than just questions in it.  They're probably going to be busy for the next few weeks with a lot of back and forth between them, eBay HQ and CRA.

---

It took em a few months to figure out it was not called "VAT" in Canada and change the reporting.

-Lotz

[brettjet38]

 Most precious metals bullion in Canada is exempt from GST/HST. Provided the precious metals are defined as coins, bars, ingots, or wafers of gold, silver and platinum. Additionally, they must be refined to a minimum purity of 99.50% for Gold and Platinum, and 99.9% for silver. 

[coins.4.fun]

The proper term would be zero rated, not the exempt from GST/HST. 

And yes, you're right many of the coins made of precious metalls would be zero rated, but not all of them.

And that begs the question - how eBay would handle that?

[marnotom!]

Probably by using a combination of the coin’s subcategory, item specifics and buyer’s postal code.

[coins.4.fun]

Well, that means it would be up to the seller to decide if coin is taxable.

I have a feeling eBay would NOT like it.

🙂

[lotzofuniquegoodies]

---

@coins.4.fun wrote:

The proper term would be zero rated, not the exempt from GST/HST. 

And yes, you're right many of the coins made of precious metalls would be zero rated, but not all of them.

And that begs the question - how eBay would handle that?

---

To throw another wrench into this how does/will eBay address buyers that are tax exempt like religious organizations/Aboriginal and Northern Peoples?

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

https://turbotax.intuit.ca/tips/tax-exemptions-and-special-rules-for-aboriginal-and-northern-peoples...

https://www.thebalancesmb.com/what-goods-and-services-are-gst-hst-exempt-or-zero-rated-2948159

https://www.taxtips.ca/gst/gst-hst-taxable-and-exempt-goods-and-services.htm

-Lotz

[reallynicestamps]

@jasmen@ebay @ velvet@ebay

To throw another wrench into this how does/will eBay address buyers that are tax exempt like religious organizations/Aboriginal and Northern People

The same way we dealt with status or diplomatic clients in our shop, when we had one.

The client made a claim since we did not have the ability to fill in the forms.

This is also how returns are dealt with by CBSA.

You buy something and there are import fees. When you return it to the seller, you -the buyer- make a claim with the CBSA.

If eBay collects tax on precious metals or tax exempt metals, expect lawsuits.

Or the client makes a claim  with Revenue Canada and gets a tax refund.

This is cheaper and faster than hiring a lawyer and starting a suit.