Selling CDS and DVDs

[rosslandchunin]

Can I sell DVDs and CDs that I find at thift shops without putting taxes on them?

[ypdc_dennis]

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@rosslandchunin wrote:

Can I sell DVDs and CDs that I find at thrift shops without putting taxes on them?

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If you are not registered to collect tax you may not collect tax.

So no tax collection for sales inside Canada unless you are registered.

And no tax for sales outside Canada..

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[reallynicestamps]

The only advantage to registering to remit sales taxes is that you get a rebate on GST when the item you paid tax on is exported.

These are called export tax credits.  Your accountant can tell you all about them.

If you aren't making enough money to have an accountant, you probably aren't making enough to make registering to remit taxes worthwhile.

The value bandied about is usually $30,000 annually, but I forget if that is profit or gross.

So are you in the Kootenays? I have a child and a nephew there.

[pierrelebel]

"you get a rebate on GST when the item you paid tax on is exported....  These are called export tax credits."

Close but not quite.

Once a seller is GST/HST registered, every amount of tax (GST or HST) you pay on business related inventory or expenses becomes ITC (Input Tax Credit).

When you file your GST/HST report (usually annually unless your volume requires monthly or quarterly reporting), you add up the amount of tax payable on your taxable sales within Canada and subtract your ITCs.  It does not matter if the goods on which you have paid tax have been sold or not, have been exported or not.  That is irrelevant to the GST/HST calculation (it is relevant to income tax calculation - that is a totally different story).

For example, in one year you have paid $1,000 GST or HST on your purchases and business related expenses. Not all items purchased that year were sold by year end.

Your sales (including shipping charges) within Canada amounted to $7,000 on which $697 was collected in GST and/or HST (depending on residence of buyers).

When filing your GST/HST return you will need to remit $697, claim ITCs of $1,000 and the government will send you a refund cheque (or arrange direct deposit to your bank account) for $303,

By law, you must register with GST/HST if your gross worldwide annual business revenues (including shipping charges) is Cdn$30.000 or more.

Many eBay sellers would benefit from registering with GST/HST even if their annual worldwide revenues are well below $30,000 as long as most items are exported as no GST/HST is payable on exports.