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re post 46 "with the key # of $150+ per month,"
What does $150 have to do with your eligibility for ITC on services where no tax was actually remitted to CRA by the supplier of service?
This post is addressed specifically to anguscoinshop and I would appreciate a reply from him.
"I already did."
I am sorry. I am getting older and my vision is not what it used to be. I reviewed this thread twice, from the beginning, and cannot find your reply on the subject. PJ asked the same question about the relevancy of $150 and that question also went unanswered by you.
What I found is:
From your first post on this thread (5): "Gst/Hst is already included in your fees, just use the wright formula to extract the tax, your monthly fees are $150 or more monthly and you pay your fees on a canadian credit card."
Could you please explain the importance (you called it "key") of $150 monthly fees
also what is the importance of being charged to a "Canadian credit card"? Why is the method of payment relevant to CRA when it comes to eligibility of ITC
@anguscoinshop wrote:
Raphael if you are posting on behalf of ebay you have to be very careful what you write. There's a tax # attached to ebay for the gsp it would be the same # across the board.
From what i'm reading on your post(s), ebay could be committing fraud.
Please don't twist my words. What I said was that eBay Canada and eBay International AG are 100% not committing fraud. eBay International AG does not have a registered GST number, otherwise it would be on your eBay invoice.
The tax collected on GSP items is something different entirely.
May I point out that you are the only person on this thread who allegedly has a paper on hand where the CRA asserts that there should be GST or HST charged on eBay fees. So, contrary to what Pierre said earlier in the thread, the question isn't whether people reading this should believe eBay or the CRA, it's really whether they should believe eBay or anguscoinshop.
With all due respect you have not answered my simple questions.
"It's crystal clear that ebay does not charge gst "
You are absolutely correct. Sorry it took me so long to return to this thread as CRA does not move very quickly and took longer than expected to discuss the subject!
It is also made more difficult by the fact that CRA, rightfully, will not discuss the tax affairs of anyone else. It is a question of privacy and applies to all, for our protection.
As posted by all members (but one) and eBay staffer, the service provided by eBay-Canada is not taxable, whether it is supplied by eBay.com, eBay.ca or by other eBay international sites. The same conclusion applies to the service provided by PayPal: it is non taxable although for other technical reasons.
The monthly invoice supplied by eBay.ca or eBay.com does not and has never included GST or HST for Canadian sellers. Any claim to the contrary is false.
There is no written "ruling" within CRA suggesting that GST/HST in included in the amounts charged for fees provided and eligible to ITCs.
Also, CRA confirmed it is illegal and fraudulent to make a claim for ITC when the applicant has knowledge that no tax (GST/HST) was in fact paid,
That said, it raises the question: how can a registered seller make a claim that GST/HST is included in the fees charged when no tax was charged or paid?
The answer I received was simple: it should not be done.
On the question of a "written ruling", the answer was simple: there is no such ruling. Period.
Managers at CRA would not speculate on that issue. However, it would be relatively easy for anyone to knowingly misrepresent the situation by contacting CRA and asking if "one could claim ITCs for payments made to a seller who has a GST registration number and monthly payments made by credit card averaging $125 month although not showing the GST registration number of the credit card statement".
The written reply would be yes, an applicant could make the calculation and claim the appropriate ITCs.
The misrepresentation here is that while eBay has a GST registration number it does not provide a taxable service to sellers and we all know that. At time of GST/HST audit, the registered seller could pull such letter and the auditor would most likely not investigate the matter any further.
At the end of the day, a seller claims a refund for taxes never paid and Canadian taxpayers all foot the bill.
End of saga.
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