When you say "But the fee eBay/MP charges for payment processing, which includes the sales taxes paid by the buyer, is deductible.", is this the $5.85 that i've mentioned in my original post? I know that Ebay charges all Canadian buyers a sales tax, and the fees on my end are even bigger now. Want to deduct everything, but so lost in all these taxes and fees.
EBay "processes" a sales tax , which is charged by the federal and provincial governments.
The sales tax is part of the buyer's payment.
We pay our fees on the whole of the buyer's payment.
Because eBay /Managed Payments processed the entire payment no matter why it was paid by the buyer.
And that fee on the payment is a tax deduction as a cost of doing business.
Let's use a sale to an Alberta buyer as an example.
The item sells for $100.
The shipping cost is $10.
The buyer is charged GST of 5% or $5.50.
The buyer pays $105.50.
You pay eBay FVF of 12.9% or $13.60 plus a non-refundable service fee of 30c.
That $13.90 is a cost of doing business and is deductible.
You receive $91.60 and use $10 of that to buy a shipping label.
And Managed Payments transfers $81.60 to your bank account.
