Ebay sa;es tax collection

[rpstuff28]

I am confused about the ebay sales tax collection for sales to certain states. As a Canadian seller with annual sales of less than 10 thousand, I am not required to charge sales tax. Ebay states that they are collecting and submitting the sales tax on behalf of the seller, so does that mean they are submitting the tax to Revenue Canada or are my sales providing tax revenue to the state of the buyer. I have been unable to find a clear answer on this.

[ypdc_dennis · Accepted solution]

Nothing to do with Canadian HST, GST, QST or PST.

eBay is now required to collect sales tax on purchases for a large number of American States. The sales tax collected is based on the destination (not where the Seller is located). The tax collected is paid to the destination State.

eBay does the collection and payment on behalf of all eBay Sellers.  Sellers do nothing, as it is not part of their money flow, so no accounting work is required for Canadian Sellers.

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[rpstuff28 · Accepted solution]

very helpful, Thank-you

[terence427427]

l had the same thing happen to me, l shipped a coin to OK, USA and my customer was charged 5.99% sales tax..... never seen that before and l have been selling coins for 2 years, many to USA. I am a coin collector, not in it for a profit, they are all my own coins and l buy coins with the money l make. how come the USA charges tax on demonitized coins? no other country does.

[reallynicestamps]

If your customers ask about it, just tell them that eBay is collecting their state sales tax and not you.

Tell them to contact the Office of the Governor of their state, or their state representative for more information.

And tell them that all online venues, including Amazon, LL Bean, WalMart, Target, Poshmark, and AliBaba are required to collect and remit these taxes, although some are hiding the tax in various "service fees".