What about businesses under the threshold who do NOT have to collect tax?

[Anonymous]

This news made me wonder how this is handled when a business is selling on ebay and their gross sales (ebay included) are under the 30 thousand threshold where gov says a business does not need to charge or collect GST?  Seems a disadvantage then to small business sellers here vs those selling from a physical location or storefront in the same gross sales bracket.

FYI I sell nothing as a business here, only my personal unused items but I'm still curious about this because it seems unfair.  5% may not be much on most items but on a big ticket item it is likely enough for a buyer to find it elsewhere to avoid the tax.  As a buyer myself I'll be keeping this in mind.

[mrdutch1001]

I should think by now, buyers are used to paying sales tax, GST, etc. since retail outlets having been charging these for years, whether it be new or used goods ...The internet is simply playing catch-up..

[velvet@ebay]

---

@Anonymous wrote:

This news made me wonder how this is handled when a business is selling on ebay and their gross sales (ebay included) are under the 30 thousand threshold where gov says a business does not need to charge or collect GST?  Seems a disadvantage then to small business sellers here vs those selling from a physical location or storefront in the same gross sales bracket.

FYI I sell nothing as a business here, only my personal unused items but I'm still curious about this because it seems unfair.  5% may not be much on most items but on a big ticket item it is likely enough for a buyer to find it elsewhere to avoid the tax.  As a buyer myself I'll be keeping this in mind.

---

HI @Anonymous! The tax team said:

After this change, there will be a level-playing field on eBay.ca/cafr.eBay.ca for all Canadian sellers as eBay will be collecting the tax from Canadian buyers on all purchases shipped intra-Canada. eBay is voluntarily making the change across the board to collect on behalf of all sellers – both registered or not. This change is intended to simplify tax collection for eBay sellers – and to provide one single point of contact for Canadian buyers who may have issues with tax collected.

Canadian buyers may be surprised to see the tax at first, but this requirement to collect the tax will apply across the board (for most e-commerce companies) and consumers should expect to see the tax on their purchases going forward.

[Anonymous]

And both responses missed the point...of course buyers are used to paying tax!  Yes, I'm sure business sellers are happy to see the 'level playing field' too.

My point is business sellers in Canada who make under 30 thousand a year gross are NOT required to collect GST tax and remit it to government.  Now once this policy goes into effect businesses will be effectively charging it whether they are over or under that threshold by eBay collecting and remitting it to government for all.  That may 'level the playing field' for business sellers against personal sellers but that doesn't make it fair, and certainly not to personal sellers who would not be required to collect it under any circumstance.

[marnotom!]

---

@Anonymous wrote:

Once this policy goes into effect businesses will be effectively charging it whether they are over or under that threshold by eBay collecting and remitting it to government for all.  That may 'level the playing field' for business sellers against personal sellers but that doesn't make it fair.

---

How so?

[marnotom!]

Also consider that for about three years now, US state and local taxes have been charged and collected on most sales to the US from not only US eBay sellers but eBay sellers from around the world, including Canada.

[lady.stark]

---

@marnotom! wrote:

---

@Anonymous wrote:

Once this policy goes into effect businesses will be effectively charging it whether they are over or under that threshold by eBay collecting and remitting it to government for all.  That may 'level the playing field' for business sellers against personal sellers but that doesn't make it fair.

---

How so?

---

By paying ebay fees on those taxes whereas we did not have to before since we are not registered and not required to do it.

That brings the question... would it be better to register, even if we do not have to, since registered sellers can deduct some "business expenses" like the cost of shipping materials and such.

[Anonymous]

That is what I would do if I were a business on eBay.  That way you can claim your GST expenses, otherwise you cannot.

[lotzofuniquegoodies]

---

velvet@ebay wrote:

---

@Anonymous wrote:

This news made me wonder how this is handled when a business is selling on ebay and their gross sales (ebay included) are under the 30 thousand threshold where gov says a business does not need to charge or collect GST?  Seems a disadvantage then to small business sellers here vs those selling from a physical location or storefront in the same gross sales bracket.

FYI I sell nothing as a business here, only my personal unused items but I'm still curious about this because it seems unfair.  5% may not be much on most items but on a big ticket item it is likely enough for a buyer to find it elsewhere to avoid the tax.  As a buyer myself I'll be keeping this in mind.

---

HI @Anonymous! The tax team said:

After this change, there will be a level-playing field on eBay.ca/cafr.eBay.ca for all Canadian sellers as eBay will be collecting the tax from Canadian buyers on all purchases shipped intra-Canada. eBay is voluntarily making the change across the board to collect on behalf of all sellers – both registered or not. This change is intended to simplify tax collection for eBay sellers – and to provide one single point of contact for Canadian buyers who may have issues with tax collected.

Canadian buyers may be surprised to see the tax at first, but this requirement to collect the tax will apply across the board (for most e-commerce companies) and consumers should expect to see the tax on their purchases going forward.

---

velvet@ebay 

jasmen@ebay 

I find this analogy of taxing everyone to "level the playing field" very interesting. Being under the 30,000.00 was one of the few benefits for smaller sellers selling to buyers who appreciated not having to pay tax. They probably were already doing it in other situations where they could like yardsales or buying from an ad.

Large sellers that were collecting the tax have the benefit of bulk buying (lower prices) and better discounts for shipping because of high volume selling. You can even throw in promotions. Something many small sellers can't do at the comparable rates larger sellers can.  Maybe it levels the playing field for large sellers but for small sellers its definitely not advantagous. In the end it just means eBay can collect fees on more transactions.

If you can show me how any of this is an advantage for small sellers, I'm happy to listen but to date it's got lost in translation.

-Lotz