Can the taxes applied to the final value fee be deducted from the income tax?

[vitvol]

I don't seem to understand this one, and don't want to deduct what i am not allowed to. So i am selling as a small business owner, and ebay charges the gst/hst/qst (i am in Quebec) on the total fees of an item sold. In the example below, the total fees of the item that i am paying to Ebay is $39. Then, they add up the gst/hst/qst tax on the fee, which is $5.84, increasing the total to $44.85. My question is: can those $5.84 be deducted from the income taxes or this is something you're supposed to absorb?

[marnotom!]

 Are you registered to collect QST and GST/HST for sales made outside of eBay?

[vitvol]

I am not registered, no.

[marnotom!]

You should consider registering.  Here's some information on Input Tax Credits. Sorry I can't find the French page; Google directed me to the English one:

https://www.revenuquebec.ca/en/businesses/consumption-taxes/gsthst-and-qst/itcs-and-itrs/

[vitvol]

So from my understanding, if i do register, i will be able to deduct that $5.84 that ebay has charged me for the qst/gst/hst?

[marnotom!]

That's my understanding, but I would double-check with an accountant to make sure.  The tax system in Quebec works a bit differently than it does in other provinces.

[flipistics]

You need to consult a professional, but unless Quebec does something weird you should be able to claim them if you register. More than deducting them though, you actually claim them as input tax credits (meaning you get the full amount back). You also get back other taxes related to your business such as on shipping, packing materials, etc. There are some downsides too, but getting the taxes back as well as being able to write off a lot of things is well worth it imo.

[vitvol]

What would be the downsides? I hear you had to charge the tax on sales, but now that ebay charges canadian buyers, you wouldn't be in charging the tax anymore, no?