Tax Exempt Canadian Buyers - Is it correct that they need to apply for the rebate on their own?

[ilikehockeyjerseys]

I've done some research and come across some "zombie" threads on this topic.

I want to verify I am handling things correctly, and best assisting the buyer.

If I am serving a buyer who claims tax exemption, because I give an invoice with my GST/HST information, they should be able to claim a rebate within 30 days? 

Because I cannot reasonably verify their tax exemption status, am I right that it would not be correct for me to remove the GST/HST from the sale? Even if a buyer offers to send me this information, it doesn't seem like something I am equipped to reasonably verify. 

I want to make sure I am doing the right thing here. I also don't want to alienate buyers by providing improper service. My research from other threads seemed to indicate that they have to apply for a rebate on their own, but I just want to be sure.

Thanks.

[recped]

The only situation I know of where a buyer can be "exempt" from GST/HST is for First Nations buyers and only if it is being delivered directly to a Reserve and the proper documentation is provided at time of purchase.

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

In any other case the person making the purchase and paying the GST must apply for a refund or use the tax paid as an ITC if they are registered to collect.

Exemptions apply to Provincial Sales tax, there isn't really an equivalent for GST.

[wbaupk_48]

Here in B.C. the exemption applies to ALL taxes ,as long as it  delivered to Reserve land. assuming the person has a valid Status card.

[mr.special-editions]

The buyer is responsible you only need to provide your GST/HST # which you are already doing.

[mcrlmn]

It is not your responisbility to determine who should or should not pay taxes.

If qualified, the buyer is entitled to submit an application for a rebate.

GST/HST rebate application

[femmefan1946]

Former Ottawa resident and retail worker-- another tax-exempt category is Diplomatic personnel.

We would ask for their Diplomtic ID (or Status card). If that was not presented, no exemption. One of my many nephews carries his Status Card everywhere as his basic ID.

Note that both groups can file for tax rebates without involving the merchant although they do need the merchant's tax number.

For us that was automatically printed on the cash register slip.

"Delivered to the Reserve" is the important point here once you have the card number. Google Maps would be your friend.

I also don't want to alienate buyers by providing improper service.

Some sales are not worth having.

The number of diplomatic staff who got snotty about this, when they did not actually have ID or very likely the appropriate status (eg Canadian staff at an Embassy) was amazing. Those with the ID were fine.

[mcrlmn]

It doesn't matter if the buyer claims to have 10 whatever tax exemption cards.

It is not the seller's responsibility to qualify legitimacy and/or determine who should or should not pay taxes on eBay.

At any rate, complicated to vaildate a photo online at eBay.

mr.special-editions pointed out the need to provide the GST/HST #, which is also stated in the listing.

The buyer should know that, and probably does.

If they don't, they will now.

Gotta give 'em credit for trying.

Wouldn't expect any less though.

Another consideration, though mute, is fake Covid documents are prevalent, as is every other card and document in demand.

Also, not the ebay seller's purview.

[reallynicestamps]

Sometimes a wholesaler will not charge tax to a known repeat customer who provides him with her own sales tax number.

Note the bold font.

[toro-2048]

First Nations Peoples are tax exempt at POINT of purchase.

if i  live OFF Reserve, and make an online purchase i am obligated to pay the GST Portion of the HST which is 5 %.. If i live on Reserve i am HST exempt at Point of Purchase.

So when i buy something on EBAY and i have it shipped to my OFF reserve address i  am obligated to pay 5 % only.

BUT apparently EBAY doesnt understand TAX EMEMPTIONS when it comes to First Nations Peoples, because

they are not honouring this.

Anthony Roach

[toro-2048]

NO

We are exempt at POINT OF PURCHASE

[byto253]

Old thread, but I wonder how exempt folks can apply when ebay is charging HST on sales from non-registered sellers who do not have a number.  Does ebay provide a number - can't really see that. 

[marnotom!]

@toro-2048, the word from the eBay "tax team" is that eBay will take responsibility for refunds of taxes charged in error, so if you've purchased something and have been charged tax inappropriately due to eBay's inability to exempt your purchase at the time you made payment, you need to take it up with eBay.

[kh-leslie]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.