@pierrelebel wrote:Coming to Canada soon?
http://www.ecommercebytes.com/cab/abn/y15/m01/i07/s03
Probably not. Germany has a real dislike for the kind of tricks foreign companies use to dodge the VAT, I don't think the feds here care so much.
"Gst/Hst is already included in your fees"
As the poster is well aware, that subject was covered a few years ago and eBay-Canada clearly indicated that there is no GST or HST included in the fees they charge sellers, nor is GST or HST payable on those fees as the service is not taxable - being provided outside Canada.
The last time the subject was raised (by the same poster under an old User ID), the staff at eBay answered:
http://community.ebay.ca/t5/User-to-User-Help/Is-Ebay-ca-a-canadian-website/m-p/206213#M955
"Just to confirm, eBay.ca rolls up to eBay International AG in Switzerland, therefore, we do not collect or remit GST"
Hello everyone,
Just wanted to confirm that eBay Canada does not charge any sales tax on eBay fees. If you look at your monthly invoice, you will notice it comes from eBay International AG, a company based in Switzerland and which is not allowed to collect Canadian taxes.
Furthermore, if there were taxes applied to your eBay Canada invoice, these would need to be identified on separate lined along with the relevant tax numbers, all of which are not on there.
Hope this helps clarify your questions.
Hi Pierre I have a question for you related to GST/HST. Recently CRA insisted that I get registered to collect GST/HST which I did even though my Canadian sales are dismal and probably less than $15K a year. Although my USA sales are at least 3 times that number. My question to you is do I have to collect GST on all my sales from Canada even though I have never made more than 15K per year from Canadian customers over the last 14 years? Thanks for your help on this, I Know this question is not related to the topic, but the heading triggered me to ask.
" do I have to collect GST on all my sales from Canada even though I have never made more than 15K per year from Canadian customers "
The requirement to register with GST/HST is based on Cdn$30,000 worldwide revenue (sales and shipping charge). So, even with only $1,000 sales to Canada and $30,000 to the USA and overseas, a Canadian is required by law to register.
As far as sales to Canadians are concerned, sellers have basically two options:
1) They can collect GST or HST (rate varies from 5% to 15% depending on province where the goods are shipped) and remit it to the federal government on a regular basis.
2) They can absorb the GST/HST in their prices. However, they still need to remit GST/HST (rate varies from 5% to 15% depending on province where the goods are shipped) to the federal government on a regular basis (just as they would if they had collected the tax..
In most cases, a yearly GST/HST return is all that is required. For registrants with a larger sales volume, monthly or quarterly returns may be required.
Now, once registered, there is a requirement to provide all your Canadian customers with an invoice (or receipt) showing your Registration Number, even if you do not charge the tax extra but absorb it. Some of your customers, unknown to you, may be GST/HST registered and will claim ITC on their purchases from you.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/itc-cti/nvc-eng.html
A year from now, you may be very happy to be GST/HST registered as you may receive a refund from the federal government on all the tax you have paid on all your purchases and business related expenses. This is often the case for sellers experiencing a large percentage of their sales outside Canada (where no tax apply).
Pierre thanks so much for the quick and thorough reply. I appreciate it very much.........Linda
@anguscoinshop*ca wrote:This is a bad statement, stay tuned for news.
We've been waiting years for your "news"!
"I consider eBay as the "all-year round garage sale", we don't collect/charge any taxes"
As long as your annual worldwide revenues (including shipping charges) are below Cdn$ 30,000 there is no need to register with GST/HST.
Annual worldwide Revenues above Cdn$30,000 require GST/HST registration. This is not optional and it does not really matter if one consider the business "hobby" or "garage sale" or "small business"
Many Canadian sellers with revenues below Cdn$ 30,000 do find it beneficial to register in order to claim ITCs.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html
The reason why eBay does not charge GST/HST on its services is that:
1) it is foreign based
and
2) the service provided comes from their servers located in the USA, not in Canada.
