Ebay and Canadian taxes

[billt005]

Can Ebay charge GST to buyers and remit on behalf of sellers as it does with PST? I have set up a tax table but that only applies to PST. How do I set my Ebay account so that Ebay will collect GST from buyers?

[ypdc_dennis · Accepted solution]

eBay only collects & remits sales tax for most US states, Australia (under 1000AU$) and Norway (under 3000NOK). It does not remit Canadian sales tax on your behalf (ebay can collect for you).

You set up a sales tax table. eBay adds the sales tax using your tax table when the item sells. Ebay gives you the sales tax. You file the paperwork and sales tax money with the government(s). 

How to:

https://www.ebay.ca/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section2

From your listing I assume you want sales tax for Saskatchewan, Manitoba and GST/HST for the rest.

Tax table: BC, QC would be 5%, SK 11%, MB 12% and the rest would use their GST/HST rate.

https://www.retailcouncil.org/resources/quick-facts/sales-tax-rates-by-province/

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[billt005 · Accepted solution]

Thank you, I hadn't thought of lumping GST in with PST for each province but since Ebay only collects the tax for me, it's up to me to whom I pay how much and in that manner such a scheme should work. Great idea.

[reallynicestamps]

Are you registered to remit PST and GST?

In most provinces registering for either automatically registers you for both.

If you already have a B&M business the same permit applies to both.

Also you get 200 Free Listings without a Store subscription, so at this point, as a new or occasional seller, the number and value of your listings are going to be restricted for some months until you have a selling track record.'
If you signed up for a Store without knowing that, try calling Customer Service and get your money back, even if it is as a credit.

The cheapest Canadian store costs you $24.95 a month.

[billt005]

Unfortunately, we don't have HST in Saskatchewan so the GST and PST are separate and require separate regisstration, however, as another pseron has explained, Ebay only collects the tax for me, so I can lump GST in with PST by adding percentages for each province. I only collect PST in SK and MB so for the other provinces I would only collect GST. Thank you for your help and your suggestions!

[femmefan1946]

Same situation in BC. I always ask that question because many new sellers seem to think they have to collect taxes and then don't know what to do next with the money. Most provinces don't want to know about businesses with a gross of less than $30,000 a year. The work to process the taxes submitted is less than the cost of processing them.