eBay

cumos55 · ‎06-21-2018

The US Federal Government has just passed a regulation that relates to internet sales in the US.

Internet sellers ... specifically those without a B & M store.....must charge a sales tax..... A destination state tax.

If a Seller in a state sells to someone that lives in any of the other 49 states, this seller must charge a sale tax if the destination state has a sales tax.

This can be most difficult.... where in the US one must deal with a state tax, a regional tax, and a municipal tax.... The regulation most likely applies only to a state tax.

This might affect Canadian sellers. However, the tax would most likely be charged when a parcel crosses the border.. from the Canada to the US.

And everything below a certain value will not be taxed..... something similar to the tax levied on items travelling from the US to Canada.

hlmacdon · ‎06-22-2018

@reallynicestamps wrote:
(EBay is ) calling on the US Congress to step in and provide clear tax rules, with a strong small business exemption, to help small businesses

To put that in perspective, I believe the US definition of a small business is one with fewer than 400 employees.

One of the key aspects of the ruling was the SD tax exemption threshold. Essentially they looked at a cap of $100,000 in sales into the state or at least 200 transactions. While not every state would be bound by the same limitations, that was one of the key areas in the decision that would be looked at in determining what level of business one was conducting in a given jurisdiction. Depending on the price point of what one sells, 200 transactions is not a terribly large number for selling into larger states if that was an example to be used.

cumos55 · ‎06-22-2018

We should all remember that $30,000 amount .....to register to collect GST/HST

includes..... sales PLUS postage.

The buyer pays one total to the seller..... This is total business income before business costs are deducted

The cost of postage becomes a business cost to a seller.

ypdc_dennis · ‎06-22-2018

@reallynicestamps wrote:
(EBay is ) calling on the US Congress to step in and provide clear tax rules, with a strong small business exemption, to help small businesses

To put that in perspective, I believe the US definition of a small business is one with fewer than 400 employees.

Small depends on the industry. Some business categories can be small with 1500 employees, some can only have 100 employees. Some business categories are determined by annual income rather than employees and range from $750 thousand (farming) to $38.5 million.

PART 121—SMALL BUSINESS SIZE REGULATIONS USA
https://www.ecfr.gov/cgi-bin/text-idx?SID=b919ec8f32159d9edaaa36a7eaf6b695&mc=true&node=pt13.1.121&r...

By US standards, I think I'd qualify as a tiny mini-micro business...

bpl521_sell · ‎06-23-2018

@reallynicestamps wrote:
@bpl521_sell
if I recall correctly as a seller I am SUPPOSED to declare income from sales on my tax return after a said amount.

No.
You are supposed to declare all profit from sales when you purchased the goods with the intention of reselling, on your income tax.
You are also allowed to subtract the costs of selling (including the purchase of the goods) from your selling income.

I stand corrected, although I bet that 99.99% of low volume ebayers, craigslist, garage sales do not declare. I don't even think Revenue Canada cares, considering their attention should be focused on the 100 of millions if not billions of missing tax dollars that have been funneled offshore, i.e. the Panama papers.

cottagewoman · ‎06-24-2018

My concerns exactly - I ship within the US and 95 percent of my sales are to the US. Having to pay at the border will end my business which I'm just building.

canadian.tree · ‎06-29-2018

We already have that here . If anything this will help out Canadian sellers because we are already forced to charge an import tax to the US . Now either the people their keep the price the same and include tax so sell for more than before or drop the price of the item to a lower price to absorb the tax and make less money .

femmefan1946 · ‎06-29-2018

because we are already forced to charge an import tax to the US .

This is news to me.

Canadian sales taxes are not charged on exports. In fact, if the seller is registered to remit GST,she can claim tax credits for GST paid on purchases that were later exported.

pierrelebel · ‎06-29-2018

canadian.tree: "If anything this will help out Canadian sellers because we are already forced to charge an import tax to the US "

Confused?

Canadian sellers DO NOT pay any " USA import tax" when a buyer located in the USA buys a product from a Canadian seller. The recent American "internet tax" legislation has nothing to do with eBay Canadian sellers.

Nothing.

blackranda2 · ‎04-14-2019

Actually now it appears it does have to do with Canadian sellers. I have sold a few items to US buyers in Washington and they had to pay the internet sales tax at checkout on their purchases from me. Which totally baffles me. A US buyer paying taxes on Canadian items? I can't help wondering if US buyers think the Canadian seller is collecting the tax and remitting it to our government or if they realize it is their government who the tax is being collected for. I am somewhat afraid this could cause conflict issues between US buyers and Canadian sellers and put a huge damper on our sales to the US. I for one can verify my sales to US buyers has dropped on considerably since January of this year. Whether this is the reason or not the timing is definitely right.

ypdc_dennis · ‎04-15-2019

@blackranda2 wrote:
Actually now it appears it does have to do with Canadian sellers. I have sold a few items to US buyers in Washington and they had to pay the internet sales tax at checkout on their purchases from me. ...

Still has nothing to do with the Seller -- eBay collects the sales tax from the Buyer -- the Seller is not involved.

ebay collects the sales tax money (currently for Australia and some USA states) and forwards it to the tax authorities. You are not involved.

The total show what the buyer paid, the details what portion you actually got paid.

Current sales tax list of USA states where eBay collects:

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

https://community.ebay.ca/t5/Announcements/How-US-Internet-Sales-Tax-changes-may-impact-your-busines...

tyler@ebay · ‎04-15-2019

Hi everyone,

Due to the length of time that has passed since this thread began I have locked it from future replies. If this is still an issue that warrants discussion, don't hesitate to begin a new thread!

Tyler,