@rocketscollectibles wrote:
This is still awful that if i sell something $90 + $10 shipping, buyer pay taxes on the $10 shipping. Then i purchase the $10 label, and i'm charged taxes on that, to the buyer's province. I understand if i go to the office as the sales are not tracked, but here eBay clearly knows we paid taxes twice on the same amount. The label should be considered to be sold to the buyer, instead of being considered sold to seller, then resold to buyer. And the fact they charge taxes to seller based on buyer's province, instead here to give the taxes to quebec, coming from a quebec resident, buying in quebec, proves that they consider the purchase of the label coming from the buyer. No wonder why they hide the amount, we're actually scammed. The buyer's province receive twice the taxes for a single purchase. Seller gets charged taxes for something that taxes have already been paid for.
Anyway i purchased one label today for the first time. If it wasnt said previously. The label is a standard expedited parcel label, nothing different.
NOT A TAX PROFESSIONAL just trying to give a simple way to unerstand how it works
No your not being scammed, this is how taxation works in Canada. ebay is just not giving itemized reciepts like they should be which is the concerning issue with their label system.
If you were registed bussiness with a GST/HST number you would be able to get the tax you paid on shipping BACK from the government. At tax time you file GST/HST paid and colellcted and based on the 2 amounts you either owe more money or get money back
Taxation in Canada is meant for the END buyer to pay the tax, and all the people selling along they way get the tax they paid back, in simple terms.
1. Distributor sells and item to you and collects $5.00 tax from you. Distributor files taxes end of the year and SENDS that $5.00 tax that you paid them to the CRA
2. You sell the item again on ebay, you collect tax for the same item but this time you collect $10.00 tax from the ebay buyer as you sold the item for a higher price. ebay collects this $10.00 on your behalf and send it to the government. At tax time IF you were a registered business you would then claim the $5.00 tax you paid to the distributor and would get a refund for the $5.00, meaning you never paid tax on that item to sell it as you got a refund for the $5.00
3 In the end the government ends up with $10 from the END user (your ebay buyer) as you got the $5.00 back from the government that the distributor sent them. Its a bit of a roundabout process but it does work out in the end that only your ebay buyer paid the tax.
The same works for shipping and the tax, if you were a business ou could claim the tax from shipping.
Becasue you are not a registered business yes you are paying taxes again but you could be getting them back if you registered as a bussiness which you can do at anytime but must do if you sell more then 30K gross annually
