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.

[marnotom!]

Your US buyer pays state and local taxes on the item, you are charged GST/PST/HST as applicable on your selling fees.

Some US buyers may know that anything they purchase from an online marketplace such as eBay are subject to applicable state and local taxes, even items from outside of the United States.

[femmefan1946]

Some US buyers may know ...anything

Fixed that.

Sorry about that.

[radio-antiks]

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

[marnotom!]

Actually, @femmefan1946 , the crux of my goof was that it should have read, “Some US buyers may not know. . .” 😂

[clemowbooks]

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.

We actually have a B&M (and online) auction house.

https://sparks-auctions.com/auction-49/

We charge GST /etc on fees to both buyers and sellers.

Consignor and buyers fees are normal at auctions, at least the kind with catalogues and a billing department.

Perhaps not at outcry country auctions.

We're not talking about the buyer here.

They pay tax to their own country.

We are talking about the fees you pay to eBay for their services.

[marnotom!]

We should also make the point that NAFTA (now CUSMA) just reduces or eliminates duties, not taxes. An item made in the United States shouldn't incur duties if reimported into the US anyway, though.

[brettjet38]

If you already did not know 

This TAX collection system was planned by your elected Canadian Government, not eBay!

It was in the 2021 Canadian Budget, you did read it right, as a voter you should always read what is going through the system in the pork rind, CBC and most mainstream media only tells you the "things" the GOV wants to be publicized...

Also, it applies to all "online marketplaces" Amazon, Etsy, and all others. 

Any marketplace "Facilitator" that makes over $30,000.00CDN in sales has no choice other than to charge and collect the tax, this is not an eBay thing, it's a Government thing, put in place by the people you elected and put into office...

If you have an issue you can contact your local MP.

BTW - This is actually a worldwide thing, the UK, USA, Australia, and a whole slew of others already have a similar tax and many more shortly will.

And, yes it applies to USED GOODS sold through a "marketplace facilitator"

And the TAXES you paying on the entire amount of the transaction you conduct on eBay, that's the Goods & Services bit...

[radio-antiks]

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 tro USA and the buyer pays sales and import taxes.

[marnotom!]

@radio-antiks, did you send the record by FedEx International Ground (or Standard), by any chance?

[radio-antiks]

No, I shipped it with CanadaPost