eBay

mybacky-41 · ‎01-16-2023

I was charged 18% sellers fee but the eBay information site states 12%!

Every buyer had to pay tax

also, you are not required to charge and more importantly remit taxes on your sales until you sell a substantial amount (~$30,000) annually.

$560 is along way from $30,000

What is going on?

recped · ‎01-16-2023

@mybacky-41

Read the information in this announcement:

https://community.ebay.ca/t5/Announcements/Update-from-eBay-Canada-and-collecting-Canadian-sales-tax...

Come back if you still have questions.

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.

recped · ‎01-16-2023

About the 18%,

eBay fees in most Categories is 12.9% of the total sale amount (item+shipping+tax), there is also a 30 cent transaction fee. On a $10 sale the 30 cents equals an additional 3%, on a $100 sale .3% and on a $1000 sale .03%

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.

flipistics · ‎01-16-2023

In addition to what other people have said, the fees you paid also have taxes applied and included in the total you see.

femmefan1946 · ‎01-17-2023

The FVF is on the ENTIRE payment that is processed.

The ENTIRE payment includes the selling price,the shipping you charged, and the sales tax the buyer paid which was invoiced to him through your account.

Annoying as the last one is, it is Standard Practice in the industry, and has been to my certain knowledge since our B&M shop got a merchant credit card account in the 1980s. Probably earlier.

So look at what the customer paid you, and work out the percentage from there.

byto253 · ‎01-17-2023

It is government regulation now that eBay assesses GST/HST on all sales, even if the seller's total sales in a year are lower than $30,000 CDN.

marnotom! · ‎01-17-2023

. . . and it's eBay that's charging and remitting the tax, not the seller. CRA wants the taxes from eBay, not the seller.

recped · ‎01-17-2023

@marnotom! wrote:
. . . and it's eBay that's charging and remitting the tax, not the seller. CRA wants the taxes from eBay, not the seller.

On of the topics is GSH/HST on FEES, seller do pay for that.

A general comment on the issue, all the GST/HST [paid opn fee is recoverable if you register. Previously the advantage oif not registering was that you didn't have to charge your buyers either. Now that eBay collects GST/HST/PST on all sale that advantage is gone so being able to recover the GST/HST paid on fee is money just sitting there.

If you pay eBay $1000 in fees per year in Ontario that would be $130 in HST, 100% refundable for those who are GST registered and all you need to do is fill out one simple form annually or quarterly. You can generate $1000 in fees/year with only about $500/month in grosss sales

.

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.

flipistics · ‎01-18-2023

@recped wrote:
@marnotom! wrote:
. . . and it's eBay that's charging and remitting the tax, not the seller. CRA wants the taxes from eBay, not the seller.
On of the topics is GSH/HST on FEES, seller do pay for that.
A general comment on the issue, all the GST/HST [paid opn fee is recoverable if you register. Previously the advantage oif not registering was that you didn't have to charge your buyers either. Now that eBay collects GST/HST/PST on all sale that advantage is gone so being able to recover the GST/HST paid on fee is money just sitting there.
If you pay eBay $1000 in fees per year in Ontario that would be $130 in HST, 100% refundable for those who are GST registered and all you need to do is fill out one simple form annually or quarterly. You can generate $1000 in fees/year with only about $500/month in grosss sales
.

You can also recover the tax you pay on shipping, supplies, capital expenses, inventory (if applicable), etc. Keep in mind that if you register, you have to charge tax on all venues (you can eat the tax yourself, but it still has to be paid). That includes local sales like Facebook.

femmefan1946 · ‎01-24-2023

I understand that FaceBook Marketplace will no longer be free as of June 2023.

Is there any confirmation of that?

mrdutch1001 · ‎01-24-2023

Although I know nothing about any fees being implemented for individual sellers on Facebook Marketplace, there is currently this in place for businesses who conduct business on FB Marketplace:

"If you operate on Facebook Marketplace as a merchant, there is a 5% fee on all transactions, with a minimum charge of $0.40"

I do not know if that is Facebook Marketplace in general, if it varies from country to country and/or is for specific countries and/or if those fees only apply to non-local sales = may be applicable to those who ship their sold items - I sell as an individual & only do so locally...

flipistics · ‎01-24-2023

@femmefan1946 wrote:
I understand that FaceBook Marketplace will no longer be free as of June 2023.
Is there any confirmation of that?

As far as I can tell, that's just for businesses in the USA. We don't have any of the marketplace shipping and payments here (although it would be really helpful if they would do it)