Sold https://www.ebay.ca/itm/276399503918 from Canada to USA. Who pays sales tax?

[radio-antiks]

EBay charged my buyer for sales tax and announced to charge me too for PST/HST. IMHO selling and exporting to USA is free from Canadian sales tax. Please clarify

[femmefan1946]

The HS tariff code is 8523.80 (phonoghraph record). Canada and USA are NAFTA. Accordingly the seller is exempt from taxation in Canada, since the article is exported and the buyer pays sales and import taxes.. The buyer

Yes. The buyer pays applicable duty and sales taxes for their purchase.

But the seller pays Canadian tax on their own fees which is the "service " part of Goods and Services Tax. Provincial taxes are all over the place on what is a "service".

[radio-antiks]

I pay Canadian tax for " ... my own fees"? The sales price ($6500)? Fees for PST or GST or PST? Every normal auction house that stages an on-line auction cannot and does not charge sales tax if the winning bidder requires shipping out of the country.

[marnotom!]

@radio-antiks, eBay is considered a “digital marketplace” by CBSA and a “marketplace facilitator” in the United States, not an auction house.  As such, for a cross-border sale, eBay USA will collect and remit state and local sales taxes on the transaction value from a US buyer and eBay Canada will collect and remit applicable federal and provincial service and sales taxes from eBay's Final Value Fees (i.e. commission) charged to the seller for that sale.

Note that auctions make up a pretty small proportion of eBay sales now.  I believe the percentage being bandied about is 15% or so.