Will Canadian Sellers be OVERPAYING rates & fees after July 1 (eBay.ca double-tap on FVFS taxes)

[*playitagain*]

Just got the update on eBay Canada changing their contracting party. As of July 1 "The new contracting entity, eBay Canada Limited, is subject to Canadian tax law. As a result, sales tax (GST/HST/QST) will be charged on eBay fees starting July 1st, 2017. "

As all sellers know .... eBay charges a Final Value Fee on Shipping (FVFS) in addition to the Final Value Sale of an item.

Judging from the content above, this means they will also be charging taxes on the FVFS portion of their fee. IS IT LEGAL to double-tap us on taxes? We already pay taxes for shipments INSIDE Canada. On a Federal level, shipping to other countries (exports) are tax exempt.

Is eBay is proposing to tax Canadians on top of tax -- as well as tax us on export that even the Federal government does not tax? For most of us, the amount a customer pays to have their item(s) shipped IS NOT INCOME. In Ontario, will we be paying taxes 13% on non-income?

Is this legal?

[chiditta]

Probably not but they seem to do whatever they want. This will make it almost impossible to sell on eBay for me at an additional 15%

very sad what this has become

[femmefan1946]

pierrelebel , who is a tax accountant by trade, has responded to this question on another thread.

[Anonymous]

---

@femmefan1946 wrote:

pierrelebel , who is a tax accountant by trade, has responded to this question on another thread.

---

Here's the thread femmefan1946 was referring to.

We've also started a thread to discuss today's seller release news here. 

[msmaggie060]

Think playitagain is asking about something else, the taxes we have already paid to Canada Post when we purchased our postage.

[Anonymous]

---

@msmaggie060 wrote:

Think playitagain is asking about something else, the taxes we have already paid to Canada Post when we purchased our postage.

---

Thanks. As you know, eBay final value fees apply to the item price as well as the shipping price, when shipping is not bundled into the item price. 

Our fees will become subject to Canadian taxes in the near future, as announced today. 

If you think about it, you might also pay sales tax on the computer you bought to create your listings, the smartphone you use to keep in touch with things, the packing material you bought to ship your items, the items themselves, or the raw materials you used to create them, on the ISP fees for your Internet access...and yes, you may also pay taxes to your shipping carrier. 

That doesn't have any legal bearing on the fees eBay collects for our services, or on eBay's obligation to collect and remit taxes on those fees.

If you're a registered business, the taxes you will pay on your eBay fees can fold into your input tax credits. 

Hope that helps. 

[tyler@ebay]

---

@Anonymous wrote:

---

@femmefan1946 wrote:

pierrelebel , who is a tax accountant by trade, has responded to this question on another thread.

---

Here's the thread femmefan1946 was referring to.

We've also started a thread to discuss today's seller release news here. 

---

Hey all -

To consolidate conversations into a more manageable area I've blocked replies on this thread. If you have further questions or concerns please raise them on the threads Russ mentions. Thanks!