The Canadian Guitar Forum banner

1 - 18 of 18 Posts

·
Premium Member
Joined
·
278 Posts
Discussion Starter #1
Hi all,

Is it true, that as of July 1st, if we sell a used item on eBay we have to pay GST or HST from our selling price? !!!!
 

·
Registered
Joined
·
662 Posts
I can't verify 100%, as I don't sell on eBay, but I've seen it mentioned on different forums. I guess there is some plausibility to it.
 

·
Premium Member
Joined
·
2,023 Posts
Canadian sellers to be charged GST/HST/QST on all fees effective July 1 2017?
[ New ]

Options

‎05-09-2017 02:15 PM - edited ‎05-09-2017 02:17 PM

As part of the Summer 2017 update, eBay has announced the following. You will see all updates in the email they are sending.







Today, eBay announced changes that will impact Canadian residents and businesses who use eBay.

To better reflect how we manage and operate our platform in Canada, on July 1st, 2017 we will be changing the contracting party for Canadian residents and businesses from eBay International AG to eBay Canada Limited, a Canadian corporation.



As a result, eBay users residing in Canada will begin contracting with eBay Canada Limited. This change will impact these users' User Agreement, User Privacy Notice, Billing Agreement, and other agreements with eBay.



The new contracting entity, eBay Canada Limited, is subject to Canadian tax law. As a result, sales tax (GST/HST/QST) will be charged on eBay fees starting July 1st, 2017. The applicable sales tax rate will vary by province, which we will determined based on your registered eBay address. You should confirm that your registered address is correct. The current applicable tax rates are:











Province Rate
Alberta (AB): 5.00%
British Columbia (BC): 5.00%
Manitoba (MB): 5.00%
New Brunswick (NB): 15.00%
Newfoundland and Labrador (NL): 15.00%
Northwest Territories (NT): 5.00%
Nova Scotia (NS): 15.00%
Nunavut (NU): 5.00%
Ontario (ON): 13.00%
Prince Edward Island (PE): 15.00%
Quebec (QC): 14.75%
Saskatchewan (SK): 5.00%
Yukon (YT): 5.00%




While the addition of GST/HST/QST on fees is new, eBay's prices will not change as a results of this legal entity change. Furthermore, you should see no interruption in your service as a result of this change, and you will not need to make any updates to your listings.



If you are a business user, we recommend that you consult with your tax advisor to understand your eligibility and the process for claiming an input tax credit on tax paid for services provided to your business.
 

·
Premium Member
Joined
·
3,068 Posts
Not surprised, CRA was chasing after people making a living selling crap on eBay and not claiming anything. Been a few years since I'd read anything on it. I'm assuming it was a necessary change to keep operating in Canada.
 

·
Premium Member
Joined
·
8,549 Posts
So, I didn't go look at the terms, but it looks like just fees on ebay charges, so unless you're selling a yacht or something you're just talking about nickels and dimes.
 

·
Premium Member
Joined
·
278 Posts
Discussion Starter #7
So, I didn't go look at the terms, but it looks like just fees on ebay charges, so unless you're selling a yacht or something you're just talking about nickels and dimes.
Oh cool. I think you may be right. It's not taxes on the selling price of an item - just the ebay fees.
That's a relief!
 

·
Premium Member
Joined
·
3,233 Posts
So, I didn't go look at the terms, but it looks like just fees on ebay charges, so unless you're selling a yacht or something you're just talking about nickels and dimes.
I read the same from above. It appears that it is the fees that are subject to GST/HST. If you are not a business member, it is roughly 10% of the item sold (including shipping) subject to GST/HST.
 

·
Premium Member
Joined
·
2,006 Posts
I read the same from above. It appears that it is the fees that are subject to GST/HST. If you are not a business member, it is roughly 10% of the item sold (including shipping) subject to GST/HST.
Actually, on sales of music equipment, ebay recently lowered their final valuation fee from 10% to just 3.5%, in an obvious attempt to lure sellers from Reverb. The new GST/HST tax would be on that smaller % then.

So, to sell & ship a guitar for $1K from ON, the total cost would be ~$40 i.e. final valuation fee of 3.5% ($35) plus 13% tax on that fee ($4.55).
 

·
Premium Member
Joined
·
3,233 Posts
Actually, on sales of music equipment, ebay recently lowered their final valuation fee from 10% to just 3.5%, in an obvious attempt to lure sellers from Reverb. The new GST/HST tax would be on that smaller % then.

So, to sell & ship a guitar for $1K from ON, the total cost would be ~$40 i.e. final valuation fee of 3.5% ($35) plus 13% tax on that fee ($4.55).
That's good to hear.
 

·
Premium Member
Joined
·
4,474 Posts
Thank god it's just the fees. Holy crap, I've sold lots on ebay and If i had to pay GST and PST on it I'll go back to kijiji
 

·
Registered
Joined
·
3,298 Posts
Ahem. (RE: the East carrying the West).

Always convenient how these charts never list the various subsidies, guaranteed loans, tax breaks, research grants etc. that help generate the oil-cash that is then partially transferred. That and the fact that we are one country, rather than autonomous neighbours, and that the equalization payments are actually enshrined in the constitution. They are also historically selective and "forget" that Ontario floated the West for decades.

When I lived in the west I grew incredibly sick of hearing people who would complain about indigenous land claims immediately turn around and complain about others taking/laying claim to "their oil."

Wait, how did we go from ebay fees to all this? :) LOL
 

·
Mad Strappier
Joined
·
470 Posts
No tax breaks/handouts Bombarding eastern companies, not at all nosiree...
Tired of paying for cheap beer and smokes in quebec, and I don't even smoke.
Fact remains, see chart above.
 
  • Like
Reactions: High/Deaf

·
Registered
Joined
·
3,298 Posts
No tax breaks/handouts Bombarding eastern companies, not at all nosiree...
Tired of paying for cheap beer and smokes in quebec, and I don't even smoke.
Fact remains, see chart above.
I think we will just end this here as I fear you will always have exclusive access to 'facts'.
 
1 - 18 of 18 Posts
Top