With Managed Payments you will receive two invoices.
(1) The first invoice contains the store subscription fee. eBay has added GST = 5 % to this fee.
This amount is paid each month.
(2) The second invoice is a Tax summary for final value fees plus GST =5 %.
This amount , FVF + GST, was deducted from the total of Item price plus shipping cost for each transaction. You do not have to pay this amout because it has already been deducted. This invoice is for your records.... to indicate how much GST was charged on the FVF.
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If you are registered to collect GST/HST this total for GST, for the store subscription plus FVF, becomes a part of the Input Tax Credit (ITC). The ITC is deducted fom the total paid by buyers.
If you are not registered to collect GS/HST, this GST on the store subscription plus FVF becomes a cost for selling on eBay. Many sellers will register to collect GST/HST only to receive this ITC from Canada Revenue Agency.
If you are registered to collect GST/HST you must collect the tax even if your total of sales plus postage is less than $30,000. The total for GST/HST charged by eBay will be highest in HST Provinces, and registration to collect GST/HST may be a more important reality in HST provinces.
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If you have $20.000 in sales plus postage each year, with a FVF equal to 10 %, you will pay FVF equal to $2,000 and with GST = 5 % the GST charged by eBay would be $100.
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For HST provinces the amount charged on this FVF =$2000 would be $260 for sellers in Ontario where HST = 13 %, and for the four Atlantic provinces, where HST = 15 % , the total for HST charged by eBay would be $300.
When eBay established a physical location in Canada, as a Canadian company, they started to charge GST/HST on all fees paid by Canadian sellers on eBay.
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