taxes for usa

[leisurecycle]

when I sell an item from Canada to the usa, are there any taxes that I must include in the shippment

[pjcdn2005]

No. If there are taxes or fees due they will add those on at U.S. customs.

You are probably aware as well that you do not charge gst/hst to buyers in Canada unless you are registered with the government to do so.

[cumos55 · Accepted solution]

If a seller is registered to collect taxes, that is GST/HST,  on sold items\

The following applies to sellers that live in Canada, and the item is to be mailed to a destination outside of Canada

There is no tax applied if the total price per transaction is $5.00 or more.

If the total price per transaction is less than $5.00, it is 

GST and QST  if mailed from QC

HST if mailed from  ON, NB, NS, NL and PE

GST if mailed from the other provinces...

If the total for postage is  less than $5.00 to the US then the appropriate taxes will be charged... 

$5.00 is the magic number...

Mailing one letter  with postage at $3.00 to the US... tax is applied to the cost.

Mail two letters as a single transaction, with postage at $3.00 for each letter,  total = $6.00, and there is no tax applied.

The key words are per transaction

[cumos55]

Only if a seller has sales plus postage that adds up to to greater than $30,000 annually, does a seller have to register with Revenue Canada, and collect GST/HST.

The total is for sales worldwide, and not just Canada.... and it is for sales through eBay and all other venues, both on and off the internet...

Postage is included in the total  because it is the buyer that pays for postage and item purchased as a single value,  for a single transaction

and it is the seller that selects the method for delivery, and pays for delivery,  of a purchased item to the buyer...

[brandeentertainment]

Previous comment

Only if a seller has sales plus postage that adds up to to greater than $30,000 annually

When I started my business and I called Revenue Canada they said in Total ... SO if I sold $10,000 a year for 3 year after the 3rd year I would reach the $30,000 at which point I would have to register and charge taxes ...

Was the Revenue agency wrong and maybe I am just ready it wrong .. I am pretty tired right now 😉

[pierrelebel · Accepted solution]

apples and oranges.

The original question refers to charging tax when shipping to the USA.  The answer is NO.  Always NO.

The comment about tax on postage costing more than $5 has nothing to do with charging tax when shipping to the USA.  It has to do with paying tax on postage. A totally different subject.

Now, let's do a quick refresher on GST/HST, a confusing subject for many eBay sellers.

1) Only GST/HST registered sellers can charge GST/HST.  If you are not GST/HST registered, you cannot charge the tax, regardless where you ship. To do so is a criminal offence in Canada. It does not matter if you paid tax or not.  You cannot charge it.

2) If your annual worldwide revenue (including shipping and handling charges) reaches $30,000 you must register for GST/HST and remit the tax on your sales of taxable products and services within Canada.  Sales outside Canada are considered "zero rated" and no tax is chargeable or needs to be remitted. GST/HST for sales of taxable products must be remitted when filing your GST/HST report.  Many sellers absorb the tax in their selling price and do not charge GST/HST to their Canadian buyers; they still have the legal obligation to remit the tax to the government as if it had been charged.

3) Many Canadian sellers may find it financially advantageous to register for GST/HST even if their annual worldwide revenues are below $30,000.  Why?  Because once registered you get a full refund of all the GST/HST paid on your purchases and business related expenses through Input Tax Credits (ITCs).  This would be attractive to sellers of taxable products where the majority of purchases attract tax and the majority of sales are exported.

[brandeentertainment]

Thanks for PM Pierre .. Appreciate it ... It's only a good day if I learn something new everyday

Thanks Pierre

[jonesrj8691]

eBay itself is now in violation of international laws with new policy. This is being reported to rev Canada and other agencies. It’s one thing to think they are “customs” when actually they are not and items still have to go Through customs and may in deed be charged again. It’s quite the opposite to be collecting taxes on untaxable items. Where’s the money going? I’d bet into ceos pockets. This is THEFT if not fraud on a huge scale. Some things are not taxable through customs agreements betweeen countries. eBay is taxing them tho and pocketing illegal funds. I see 2020 as a crippling blow to this all ready struggling platform. May as well sell elsewhere folks.

[pjcdn2005]

You are commenting on a 5 year old thread. The laws and rules on eBay have changed since then.

[brettjet38]

Zombie Thread from 2014...

[kh-leslie]

Hello Everyone,

Due to the age of the 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.

Thanks for understanding!