eBay

moy64 · ‎05-09-2017

As a Canadian seller on eBay will I have to pay sales tax on items being exported?

Anonymous · ‎05-09-2017

@moy64 wrote:

As a Canadian seller on eBay will I have to pay sales tax on items being exported?

When the changes take effect, you'll pay Canadian sales taxes on all your eBay seller fees.

Whether those fees are insertion, feature, subscription or final value fees doesn't matter. Nor does it matter which site you listed on, which site your listing was purchased on, or where you shipped it.

So no, you won't pays sales tax on items being exported, but you'll pay sales tax on the resulting eBay seller fees.

deeeight · ‎05-10-2017

Ebay provides a service... services are subject to sales taxes generally... I myself never understood how ebay got away with not charging sales taxes on their user fees. Presumably some accountant and the CRA doing the audit of Ebay Canada thought the same thing....

cumos55 · ‎05-10-2017

We used to pay our eBay fees to a business located outside of Canada.

We will now have an eBay Canada Limited located in Canada, and as a Canadian business this corporation will now charge taxes on all of eBay fees paid to this eBay Canada Limited.

pierrelebel · ‎05-10-2017

cumos55 - "We used to pay our eBay fees to a business located outside of Canada."

I know but this had nothing to do with the taxable nature of the service.

Where is company is located or where its owner is located does not affect the taxable nature of the service provided. Tax laws in Canada are very clear on the subject: if taxable, GST/HST must be remitted by the provider of the service IF THE SERVICE IS PROVIDED IN CANADA.

Until now and since 2000, CRA had agreed with eBay-Canada that the service (listing, stores, etc...) was provided in California where the servers are located and eBay had no real business in Canada other than a marketing office. As such, the fees for the service were not taxable.

It never had anything to do with ownership in Switzerland or USA. That was a big misunderstand that was never corrected because there was no point in correcting it.

Jordan Banks, a lawyer by training and the first manager of eBay-Canada, was instrumental in the arrangement with CRA, saving small Canadian sellers millions of dollars in taxes over the years.