eBay

33nhl · ‎11-21-2017

I have spent some time researching this subject and cant find proper answer for it

Sellers now have to pay so called gst/pst on the fees that Ebays takes from all sales and shipping

Since ebay says forced under government rules ect

Question then is how come PayPal is not charging tax on fees cause basically PayPal charges a % fee on the transactions just like Ebay charges a 10% fee on sales and shipping

How about major Credit Card Companies do they charge stores such as Walmart Canadian Tire ect tax on the fees that is charged to the store when ther costumers use ther credit cards,

Don't all of these services fees fall on the same category thus if all others are not charging so called gst/pst on the fees how come now Ebay is doing this.

Maybe someone has info on this subject

tobyshitzu · ‎11-21-2017

Financial services have always been exempt from gst

pierrelebel · ‎11-21-2017

Different services attract different level of taxes (exempt, GST or HST)

For more information: http://www.cpa.ca/cpasite/UserFiles/Documents/Practice_Page/HST.pdf

In summary, yes eBay fees are taxable, no PayPal fees are not taxable.

musicyouneed · ‎11-21-2017

Yesterday I called ebay and had them credit over $40 in shipping for a number of buyers for combined shipping. How does that work with the GST fees?

pierrelebel · ‎11-21-2017

When a fee is reversed by eBay, so is the tax attached to it.

33nhl · ‎11-21-2017

thanks for the link I look at every item in that pdf link and has no detail in respect to paying gst/pst on such type fee

if ebay fees were for membership or store monthly subscription yes can see that but nothing on as Ebay taking a cut from the sale of an item thus you pay tax on it Should it not be like under financial as banking thus as PayPal is exempt should Ebay fees be exmpt

Makes me wonder if it was to pay gst/pst on the sale fees portion and this was affected from 2010 how come now being charged rather then back from 2010 seems weird rules

pierrelebel · ‎11-22-2017

Contact a local auctioneer. Ask him what commission he charges to sell goods on your behalf. Then ask if he must collect GST or HST on those fees.

I have been paying GST (or HST) on auctioneers fees since 1991.

cumos55 · ‎11-22-2017

When someone buys at a local auction, the buyer pays GST or HST as per province.

As a seller registered to collect GST/HST....

I do not have to report GST/HST on the price of the item sold at auction ... and then also on the commission paid to the auctioneer....

Why not? It is because the buyer has already paid GST/HST on the price of the item they bought bought.... and your commission is included in that price paid by the buyer...

Charging GST/HST on the commission would be a double charge of GST/HST on the commission which is a part of the total price paid by the buyer

ypdc_dennis · ‎11-22-2017

@cumos55 wrote:
When someone buys at a local auction, the buyer pays GST or HST as per province.

As a seller registered to collect GST/HST....

I do not have to report GST/HST on the price of the item sold at auction ... and then also on the commission paid to the auctioneer....

Why not? It is because the buyer has already paid GST/HST on the price of the item they bought bought.... and your commission is included in that price paid by the buyer...

Charging GST/HST on the commission would be a double charge of GST/HST on the commission which is a part of the total price paid by the buyer

That is way too convoluted. No double charging involved.

If you need to report GST/HST on an auction sale, then the GST/HST portion of the auctioneer commission is an ITC to be subtracted.

Auctioneer fee either includes GST/HST or displays it separately.

-..-

cumos55 · ‎11-22-2017

From the CRA website.....Link to

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/gi-010/auctioneers....

and... Here is the first sentence.....

An auctioneer who has made a sale of goods by auction is considered (except in limited circumstances) not to have provided the owner with services related to the sale of the goods. The auctioneer does not charge or account for tax on related services, including those for which they charge a commission, such as calling the auction or providing a facility.

----------------------------------------------------------

Pay attention... carefully

The auctioneer sells something for me..... $100.00 is the final price.

Buyer pays GST of $5.00 on the total

Auctioneer takes 25 % as a commission.... That is $25.00

Buyer has paid 5 % on that $25.... GST = $1.25

GST has already been paid on the commission.....

Why should I pay GST on the auctioneer's commission???

I have never been charged GST on the auctioneer's commission... and... I have sold a lot at auction over the last 5 years...

gwrocen · ‎11-22-2017

@cumos55 wrote:
From the CRA website.....Link to

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/gi-010/auctioneers....

and... Here is the first sentence.....

An auctioneer who has made a sale of goods by auction is considered (except in limited circumstances) not to have provided the owner with services related to the sale of the goods. The auctioneer does not charge or account for tax on related services, including those for which they charge a commission, such as calling the auction or providing a facility.

----------------------------------------------------------
Pay attention... carefully

The auctioneer sells something for me..... $100.00 is the final price.
Buyer pays GST of $5.00 on the total
Auctioneer takes 25 % as a commission.... That is $25.00
Buyer has paid 5 % on that $25.... GST = $1.25
GST has already been paid on the commission.....

Why should I pay GST on the auctioneer's commission???

I have never been charged GST on the auctioneer's commission... and... I have sold a lot at auction over the last 5 years...

We agree. Never have paid gst on auctioneer's commission when we have consigned items

to an auction over the last number of years.

Two weeks ago we consigned about 50 used household and collectible items to an auction.

Total realized was $965.00

Auctioneer took his 25% commission ($241.00) and sent us a check for $724.00.

Nowhere did we have to pay any gst.

However, auctioneers statement notes :Taxes Submitted by Double D Auctions = GST: $48.25.

This is the GST paid by the BUYERS on their purchases of our sale items which totaled $965.00.

Now when eBay takes a commission on our shipping - there IS double gst charged.

Any shipping within Canada we pay GST/HST on the postage.

When eBay takes their commission they take 10% of the shipping cost which includes the gst paid on postage

because this is all included in the price that the buyer pays for shipping.

Then gst is paid on the eBay commission which includes the commission on the gst.

( I know ...hard to follow - but nevertheless - double gst no matter how little the amount.)

reallynicestamps · ‎11-23-2017

Basically, every time an item changes hands, there will be GST on the sale.

If the buyer is registered to remit GST himself, he can use the GST on that purchase as a credit against his remittance of the taxes he collects.

If he isn't - too bad, so sad.

pierrelebel · ‎11-23-2017

Different large auctioneers in Canada have either different interpretation of the rules or different rulings from CRA as to their business.

Looking at Waddington's, on of Canada's largest, they charge HST on fees to vendors:

http://www.waddingtons.ca/uploads/file/pdf/global/scheduleA.pdf

In any case, the question here relates to tax on fees collected by eBay: YES eBay fees are now taxable in Canada.

cumos55 · ‎11-23-2017

From Waddington's information sheet....

"Any packing, shipping, insurance and illustration expenses and other out of pocket disbursements reasonably incurred by us shall be for your account. This account will be subject to applicable HST and will be payable by you upon receipt of an invoice."

Consignor has an account where extra costs are placed and billed, with HST charged.

The consignor pays this invoice with HST included

No reference to the commission, and HST being charged on the commission.

The CRA page for auctioneers, and the charging of GST/HST, takes into consideration the extra costs, and the charging of GST/HST..