eBay

bogdan.r · ‎04-06-2019

I saw there is a specific TAX field in the shipping invoice to be sent to buyers after purchase.

Do Canadian sellers suppose to charge tax from US buyers?

I am selling on eBay.com mostly rather than on ebay.ca

Thank you for all the answers

ypdc_dennis · ‎04-06-2019

If you are exporting to the USA then you do not need to worry about sales tax. Only if your business is based in the USA (you are importing and then reselling) do you worry about sales tax and income tax.

Some States require eBay to collect sales tax on internet purchases sent to their State -- but eBay handles the tax details for those -- not the seller.

-..-

femmefan1946 · ‎04-06-2019

And as you probably already know, but others newer to online selling may not, if you are not registered to collect sales taxes, do NOT collect sales taxes.

Revenue Canada has no sense of humour.

bogdan.r · ‎06-10-2019

Looks like one of my recent sales to a US address had asked me to charge fees again through the payment invoice . I have adjusted the invoice to 0 but Ebay had charged the buyer separatedly with tax. The buyer is extremely mad.
What is going on? Are there any settings I am unaware of that I could change in my profile?

ypdc_dennis · ‎06-10-2019

Marking zero is proper since you are not collecting the sales tax -- eBay is. The buyer can complain to their State government.

Since last year eBay collects sales tax for Australia (under $1000AU) and for a growing list of USA states. Collection by eBay is automatic (based on destination) and the Seller is not involved with the tax money (all handled by eBay). It applies to sales made by all Sellers.

The USA tax list:

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

reallynicestamps · ‎06-11-2019

For years there have been rumours of an "internet sales tax" working up the neo-cons, libertarians and "sovereign citizens" claiming that the internet should be free* and that nothing on the internet should be taxable.

The US states meanwhile were concerned that they were losing on the revenue stream from state sales taxes which finance state infrastructure from roads to police to flood and fire control.

At last their Supreme Court gave the states leave to charge sales taxes even when the seller was not registered to remit taxes in that state.

I believe there are now 14 states charging taxes to internet buyers and there will be some 21 before the year is out.

This has nothing to do with eBay sellers.

The states chose to make the venues (eBay, AZ, etsy, WalMart, Lands End, etc) charge the buyers, bypassing thousands of small sellers around the country and often around the world.

If your customer complains, you could try telling him it is the state sales tax, that he also pays in local stores, that it is collected by eBay( et al ) and sent directly to his state government.

Then google the contact information for his state governor and provide that to him.

If the governor is a Republican, all the better.

*Since these hysterics are adamantly unilingual, they don't understand the difference between "libre" and "gratuit".

bogdan.r · ‎06-11-2019

Thank you all. Valid points and concerning to buyers and sellers in the same time.
No buyer likes to pay 15 or 17 % additionally to any purchase. To my advantage I'd probably should start selling on Ebay Canada since buyers wont be charged tax this way .

ricarmic · ‎06-11-2019

Hi Bogd, it does not matter what eBay* site you sell from they will still pay the taxes if they buy from any eBay site, whether it be .COM, .CA, .AU etc......

*the thing that is a concern to eBay and us I'm sure, is that this may push buyers to "smaller" sites that have not yet been forced to charge the state taxes....yet

ypdc_dennis · ‎06-11-2019

@bogdan.r wrote:
... No buyer likes to pay 15 or 17 % additionally to any purchase. To my advantage I'd probably should start selling on Ebay Canada since buyers wont be charged tax this way .

Who pays 17% sales tax?

Canadian sales tax is in the 5% to 15% range.

Australian VAT is 10%.

USA State level taxes are in the 0% to 7.25% range.

However, additional city level taxes can push the combined total to 11%

It does not matter which ebay site you list on.

eBay will (where required) collect USA sales tax based on the Buyer's ship-to-location.

-..-

reallynicestamps · ‎06-11-2019

Maybe it's time for eBay to develop a standard boilerplate message we can print off and add to parcels that were charged sales taxes.

With an eBay logo and everything.

Perhaps even make it part of the shipping supplies Store owners can buy quarterly.

Something very official-looking.

I still use the boilerplate about customs they provided a few years ago, and I've seen it on other listings too.

bogdan.r · ‎06-11-2019

My bad, it was indeed 11 % from the total value of the item sold. I believe importing fees are different and they can be 14-15%

ypdc_dennis · ‎06-18-2019

It looks like the EU countries will get added to the eBay tax collection list by 2021 for VAT (value-added-tax). Most of these European countries currently have a 22 Euro exemption level for VAT (some are lower, some are higher).

a new VAT for e-commerce package will enter into force gradually to 2021 ...

... make large online marketplaces responsible for ensuring that VAT is collected on sales on their platforms that are made by companies in non-EU countries to EU consumers.

https://www.ipc.be/services/markets-and-regulations/e-commerce-market-insights/e-commerce-articles/d...

reallynicestamps · ‎06-18-2019

Import fees are made up of three parts.

Duty-- a percentage of the selling price/value of the item, based on what it is and where it was manufactured.

Sales taxes (GST/PST/HST/VAT) - whether there was duty charged or not and again a percentage of value.

Service Fee- from the carrier and as often a flat rate as a percentage.

The lower the value of the import, the higher the percentage if the service fee is a flat rate.

hlmacdon · ‎06-18-2019

@ypdc_dennis wrote:
It looks like the EU countries will get added to the eBay tax collection list by 2021 for VAT (value-added-tax). Most of these European countries currently have a 22 Euro exemption level for VAT (some are lower, some are higher).

That is sure to shift a lot of business away from China to independent retail sites for quite a few niches. No wonder ebay is busily trying to find new ways to monetize sellers.

t-vulture · ‎12-26-2019

Consider yourself fortunate in Canada. And Aussie's are really fortunate.

UK VAT is 20% and has been since 2011.
Germany is 19%
France is 20%
Denmark is 25%. So are Norway and Sweden.
Hungary is 27%.

As of today, ebay has to collect and remit State Sales Tax in 39 States.

I'm sure it will be all 50 in no time. https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

Some countries in Europe and elsewhere asses every single parcel that arrives by mail - regardless of value - with their own county's tax which must be paid by the buyer at their post office before they get their parcel. Fortunately for us, this eliminates arguments with the buyers if they were to see say 25% tax added to their paypal invoice as they clearly know it's their own government collecting it.

reallynicestamps · ‎12-26-2019

And Europeans are more accepting of taxes (pace Greece Italy) and those VAT taxes have been in place for many years.

Many US states don't have sales taxes at all because their citizens would vote the politicians out of office.

They'd rather have expensive private health care, poor roads, half trained police, pricey "charter" schools, privatised jails, weak public schools, and high cost state and community colleges.

Some Americans miss the connection between low taxes and high (often private) fees.

Canadian sales taxes (VAT) vary from 5% to 15% depending on province.

richardcm · ‎12-26-2019

From the internet

Only five US states do not have a sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. But this list is a little misleading because Alaska does allow localities to impose sales taxes and they average 1.76 percent – not huge, but it's not zero, either. Montana also allows local sales taxes.

thedressemporium · ‎04-13-2020

So if we are sending an item from Canada to the US, the system collects taxes on our behalf, which are then sent off to the corresponding state, correct? As Canadian sellers, we do not touch that tax money and we do nothing more?