do i need to be a business to sell on ebay?

canturk0
Community Member

I just made my first sale, im freaking out about what to do.

1. im selling from Qc, Canada to USA, do i write a customs declaration?

2. Should i send it as a gift instead? (at least for the first time)

and yes i will be selling on ebay from now on.

 

3. what kind of company should i be to sell online?

4. what do i do about taxes and etc...

 

any help is much appreciated

ty

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The rules for the collection of PST are different for each province where HST is not collected.

 

HST includes GST plus PST..... PST is Provincial Sales Tax.

 

Quebec is unique with respect to GST/HST....... Consult the local Quebec tax authority.

 

As soon as you buy items locally to sell on eBay, you are a business ... self employed.  I am registered with a business name and a business number in the province of Manitoba...  When I registered to collect GST/HST that business number was used...

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If a Canadian seller sells more than $20,000 value on eBay in one year.. that seller gets reported to the Canada Revenue Agency (CRA).....  eBay must do this.

 

Many sellers will try to fly... under the radar of CRA... Never try to do this.

 

Everything can make one scared of the consequences.... Follow the rules  and nothing will go against you.

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eBay now charges  GST/HST on fees.... This is known as an Input Tax Credit (ITC)....

 

If you buy inventory in Canada, you may get charged GST/HST. ... This is part of the ITC.

 

Some Canadian sellers find that they sell a high number of items to buyers in the US and other  countries..  They may choose to register to collect GST/HST  even if their sales plus postage is less that $30,000, if only to get a refund on the ITC paid.... on items sold to buyers outside of Canada, and on GST/HST paid on eBay fees...

 

All of this can make one feel that you are climbing a very steep mountain....  

 

Take everything one step at a time....and learn the reality of selling on eBay