eBay

silverpinups · ‎07-01-2017

I know that GST/HST/QST will be charged on fees starting on July.1/17.

Just to clarify, will there be a tax breakdown shown on our Monthly Seller Fees Invoice? or will I have to deduct 5% from my monthly seller fees invoice?

pierrelebel · ‎07-01-2017

eBay has indicated that the GST/HST will be shown on invoices produced after July 1st.

For example, if your monthly fees are $1,000 and you live in MB the 5% GST will show a charge of $50.00 for a total invoice of $1,050.00

The $50.00 GST is eligible for Input Tax Credit (ITC).

View solution in original post

pierrelebel · ‎07-01-2017

eBay has indicated that the GST/HST will be shown on invoices produced after July 1st.

For example, if your monthly fees are $1,000 and you live in MB the 5% GST will show a charge of $50.00 for a total invoice of $1,050.00

The $50.00 GST is eligible for Input Tax Credit (ITC).

silverpinups · ‎07-01-2017

eBay has indicated that the GST/HST will be shown on invoices produced after July 1st

Thank you Pierre.

cumos55 · ‎07-01-2017

I have been working with eBay about a certain problem with respect to invoicing., and have learned when, and what gets invoiced

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If you are invoiced on the end of a month...such as June 30

Transaction fees... which includes listing fees and FVF will cover the June 1 to June 30 period and there will be no taxes applied.

The store subscription will be for July 1 to 31, and the appropriate percentage for tax will be applied

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If you are invoiced on the 15th of each month ... There will be a breakdown in relation to June 30 with no taxes charged June 30 and before, versus July 1 the first day for the application of the appropriate percentage for a calculation of tax.

If there is some confusion are perhaps errors..... the Tax charged will not be critical or those registered to collect GST/HST and QST... because it becomes an ITC

For those not registered, any problems could be critical.

silverpinups · ‎07-01-2017

I'm just glad the tax will be separated on the invoice... makes it more convenient for people when filing their GST/HST and QST for the year.

cumos55 · ‎07-01-2017

CRA Rules must be followed

There could also be a separation in relation to transaction fees and the store subscription fee...

as these costs are currently listed separately on an invoice.

silverpinups · ‎07-01-2017

It will interesting to see how eBay breaks down the tax on the invoice.

As I've said before, the GST/HST and QST should only be charged on the monthly Store Subscription and on any FVF's related to sales within Canada.

cumos55 · ‎07-01-2017

But ..... eBay Canada collects all of the transaction fees on all sales completed by Canadian sellers.

That includes fees on all sales... to buyers in Canada, US and Elsewhere

As a seller registered to collect GST/HST, I only collect tax on buyers that ... live in Canada.

The same applies to sellers that ... live in Canada

silverpinups · ‎07-01-2017

But ..... eBay Canada collects all of the transaction fees on all sales completed by Canadian sellers.

Yes, I know that's how eBay will have it set-up and I'm fine with that but technically they should only be collecting GST/HST and QST from Canadian related sales.

I'm no tax expert but that seems to make sense.... maybe I'm missing something?

The bottom-line is it becomes a ITC for me anyways....

reallynicestamps · ‎07-01-2017

The bottom-line is it becomes a ITC for me anyways....

That's where Revenue Canada makes the difference between your Canadian and foreign customers.

You get the ITC on the foreign sales.

And sometimes the ITCs are greater than the GST (etc) that you spent or remitted.

silverpinups · ‎07-01-2017

Thank you for the clarification.

cooltoycars · ‎07-02-2017

One more nail in the Ebay coffin!

silverpinups · ‎07-02-2017

I have no problem paying my fair share of taxes for the freedoms, healthcare and high quality of life that living in Canada offers me.

Look at the turmoil in the USA over Healthcare. I count my lucky stars that I was born in Canada.

pjcdn2005 · ‎07-02-2017

@reallynicestamps wrote:
The bottom-line is it becomes a ITC for me anyways....

That's where Revenue Canada makes the difference between your Canadian and foreign customers.
You get the ITC on the foreign sales.
And sometimes the ITCs are greater than the GST (etc) that you spent or remitted.

You don't get tax credits on sales regardless of where the buyer is located.The credits are for taxs that you have paid on business related expenses if you are gst registered.

For example, if you pay tax on merchandise that you purchased to sell or buy taxable supplies for your business, those taxes can be claimed as a credit on your ITC.

pierrelebel · ‎07-02-2017

" but technically they should only be collecting GST/HST and QST from Canadian related sales."

Not quite.

The fees are charged for services provided by eBay-Canada, regardless whether an item sells or not.

The tax (GST or HST) applies on those services - once again whether the items sell or not, if they sell, in Canada or elsewhere.

The same is true for tax you pay on your shipping supplies. You pay tax on the supplies regardless of what happens to them. If the envelopes/boxes/tape (whatever) are used for shipping within Canada or overseas does not change the nature or amount of the tax.

If you are GST/HST registered, you claim ITCs for ALL the tax paid, not just those sold outside Canada.

If you are not GST/HST registered, you absorb the tax paid on all items.

pierrelebel · ‎07-02-2017

reallynicestamps - "You get the ITC on the foreign sales."

We have discussed that subject before. Please talk to your husband, he is an expert on GST/HST and will confirm pj is correct.

If you are GST/HST registered, you claim ITCs for ALL (100%) of GST/HST paid on ALL your purchases for resale and ALL business related expenses (supplies, postage, etc...) regardless if the items were sold in Canada, outside Canada or not sold at all.