Wy I have to pay the taxes on shipping when I had already paid at Canada Post on stamps & envelope ?

[albeu0]

Wy EBay charge me a taxes on shipping When I had already paid on the stamps & envelope to Canada Post.? I Don't charge any taxe on the shipping to my customer. It's mean I'm loosing some money again. Fisrt I have to change the currency with new politics of EBay Canada, then this taxe on shipping It's doesn't pay any more when I sell some item at 0.99 Can$ .

[femmefan1946 · Accepted solution]

There are two possible questions here.

You pay eBay a fee of 10% on your shipping charges to your customer.

EBay introduced this a couple of years ago to stop sellers who would charge $1 for an item but $100 for shipping. This meant they paid eBay fees only on the asking price and not on the $101 they actually received.

Also eBay was copying Amazon which charges their sellers on shipping costs (and also severely restricts how much AZ sellers can charge for shipping.)

EBay now collects GST on the fees you pay to eBay for selling here, including the fee on shipping.

This was their agreement with Revenue Canada after years of tax avoidance.

when I sell some item at 0.99 Can$ .

Don't sell anything for 99 cents unless most of your sales will be multiples totalling at least $10.

That's a good way to go broke fast.

In some categories, the FVF on sales is lower than on shipping.

Since (like me) you are selling philatelic material, why not include your shipping cost in your asking price?

Which is cheaper ?

A $2.99 item with $2.00 shipping?

Or a $4.99 item with Free Shipping?

Which is more likely to annoy your customer?

A 99 cent item with $1.75 shipping?

Or a $2.75 item with Free Shipping?

Which will appeal more to your customer?

Mine love "Free" shipping, although they are smart enough to know that they are paying for shipping somewhere.

[pierrelebel]

"Why EBay charge me a taxes on shipping?"

That question has been asked several times.  The answer is always the same:  eBay does not charge you tax.  The federal government does.

The tax (GST or HST) charged on eBay fees goes to the federal government.

All fees are taxable: listing fees, final value fees, store fees (if you have a store), fees on shipping charge, fees on options (such as bold, etc...)

In summary: eBay charges fees and the government charges tax on the fees.

The only way to avoid double taxation is to register with GST/HST.  You will need to remit tax payable on your Canadian sales but will get credit (ITC) for all tax paid by you.

[albeu0]

Thank you for your answer. It's right the way you show. I just want be transparent as possible but you are right you have the best answer. Have a wonderful day.
Regards
Alain B.

[albeu0]

Merci beaucoup pour votre réponse. Je ne suis pas un gros vendeur pour me permettre de m'enregistrer, donc un gros vendeur peut ne pas payer de taxes ou du moins se les faire rembourser, alors qu'un moindre vendeur moins en moyen ne le peut, toujours la même histoire. Ce qui me choque c'est ce dédoublement de taxes. Car je les paye déjà sur le timbre et l'enveloppe, le scotch tape et autres. Pourquoi dois-je les repayer c'est cela que je ne digère pas. Mais merci pour les conseils. Bonne journée.
Amicalement.
Alain B.

[reallynicestamps]

Car je les paye déjà sur le timbre et l'enveloppe, le scotch tape et autres.

Yes, that's a tax on the goods that you purchased.

And the store you bought them in also paid taxes when they purchased from its supplier.

EBay collects a tax only on the fees they charge you.

So if you bought $10 in stamps, you would pay $5 in GST.

If you used those stamps to mail to a customer and charged him $10, eBay would charge you a Shipping FVF of $1 and collect GST of 5 cents.

I left out PST, HST and QST because they confuse me too much.