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

vitvol
Community Member

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? Inkedsdsdgdf.jpg

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@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?

 

EBay sellers who are registered to collect Canadian sales taxes no longer have to do that for their eBay sales.

EBay is doing it for them.

But the fee eBay/MP charges for payment processing, which includes the sales taxes paid by the buyer, is deductible.

And then there are Input Tax Credits, which I understand you can continue to deduct.

 

But seriously.

 

The free advice you get on the internet is worth every penny you pay for it.

Talk to you accountant.

Give her advance warning so she can read up on the new "internet" sales taxes.