Income Tax Question - Shipping and eBay Fees

[timestream_comics]

Hi there.

Not sure if anyone can answer this or not. With Income Tax coming up just wanted to see if anyone can clarify for me about Input Tax Credits in regards to Shipping Fees and eBay.

I have a GST #. If I get charged more by Canada Post for a shipping fee then I charge the customer (thus paying more in GST then I collected from the customer) does this work out as a credit on my end?

For example if Canada Post charged me $5 GST and I charged the customer $3 then I would enter $3 as the amount I collected and $5 as the GST paid (ITC)?

Also, does the tax that eBay charges on their fees count as GST Paid (ITC) as well?

Any help would be greatly appreciated as I've tried researching it online and just want to get some confirmation from someone that has done this in the past.

[recped · Accepted solution]

@timestream_comics 

Any GST/HST that you pay is an Input Tax Credit (for shipping, for eBay fees, for purchase of goods to sell, the GST/HST portion of ANY business expenses)

Any GST/HST you CHARGE customers is "tax collected"

When you fill out your GST/HST return you put the tax collected on one line and the tax paid on another line. The difference is either a refundable credit or an amount due.

There is almost no relationship between GST/HST and Income Tax, two completely separate things.

Link to GST info page:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html

[timestream_comics]

Thank you for the clear answer! I misspoke when I wrote Income Tax as I really just meant GST remittance.