Charging Sales taxes - Greed

[aanormandin]

I just sold something used at less than 40% than the original price.  Yeah for me.  I was shocked to see the charges after the sale and there is a confusion with the Canadian Tax Law.  It state theat If the item is sell at a lower price than the original and is not for profit (you are not a business) no taxes should be charge.  Ebay collect taxes from us on used goods no matter what, than charge fees on the transaction and taxes the fees as well.  The fees are also charged on the sold item, the total taxes and fees.  This add unnecessary tax fee to everyone. The other thing that many of you do not know is that Ebay is also allowed to keep 1% of all GST collected.  GREED   

[marnotom!]

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@aanormandin wrote:

I just sold something used at less than 40% than the original price.  Yeah for me.  I was shocked to see the charges after the sale and there is a confusion with the Canadian Tax Law.  It state theat If the item is sell at a lower price than the original and is not for profit (you are not a business) no taxes should be charge. 

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Sure, if you're selling it yourself and you're not registered to collect GST/HST.  But you sold your item through a digital marketplace, and digital marketplaces have been required by law for the past couple of years or so to collect and remit GST/HST (and provincial sales taxes where applicable) on transactions made through the platform.

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@aanormandin wrote:

Ebay collect taxes from us on used goods no matter what, than charge fees on the transaction and taxes the fees as well.  The fees are also charged on the sold item, the total taxes and fees.  This add unnecessary tax fee to everyone. The other thing that many of you do not know is that Ebay is also allowed to keep 1% of all GST collected.  GREED   

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I don't know if eBay is allowed to do this by CRA or not, but so what if it is?  What would you do if you were registered to collect GST/HST and CRA offered to give you a stipend like that for doing so?  Would you politely decline and ensure the goverment gets that stipend along with the rest of the taxes you're collecting for the feds and provinces?

[mrdutch1001]

and it did not occur to you that you need to "be in the know"...that if you are going to list and sell items on Marketplace Facilliator sites such as eBay, that you are going to need to know the costs/expenses/fees BEFORE listing? eBay is required by law to collect these taxes and yes, taxes are applicable to used goods when selling on eBay and similar selling sites. and while it may seem like "GREED" to you; it just so happens to be the law of the land!  BTW, eBay is entitled to its 1% whether or not you agree is irrelevant..and BTW, you do agree to all these rules, policies, fees,etc when you agree to list and sell on this site! Want to avoid such fees? Advertise your items LOCALLY on the local sites of your choice.

[flipistics]

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@aanormandin wrote:

The other thing that many of you do not know is that Ebay is also allowed to keep 1% of all GST collected.  GREED   

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I keep seeing people saying this. I'm pretty sure that only applies to the quick method of accounting, and that method cannot be used by businesses with total revenue in excess of 400k. eBay probably does that much in a day.

[brettjet38]

If you already did not know & evidently you do NOT...

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 are paying are based on the entire amount of the transaction you conducted on eBay, that's the Goods & Services bit...

This is the same thing I post every time I see this USED TAX nonsense, the issue is not eBay it is YOU for not reading about what your government plans and not reading eBay policy about fees charged...