eBay Canada collecting Canadian Sales Tax as of July 1, 2022

[Canadian Kid]

Dear eBay Canada Seller,

Pursuant to the guidelines announced in Canada’s 2021 Federal Budget and recent provincial sales tax amendments, eBay Canada Limited (“eBay”) will be required to collect Canadian sales taxes (GST/HST/QST/PST) on applicable sales to Canada-based buyers.

Effective July 1, 2022, for all sales of tangible goods sold within Canada, eBay will be collecting the Canadian sales taxes (GST/HST/QST/ PST) from Canada-based buyers on behalf of Canada-based sellers (irrespective of registration status) and remitting the tax to the appropriate tax authorities.

For sellers not registered to collect tax with the CRA and provinces, there is no action necessary. You will begin to see sales taxes charged and collected by eBay on buyer purchases beginning in July. eBay collected taxes will also be displayed in your seller reporting as of that date.

For GST/HST and/or QST registered sellers, eBay will be appointed as a billing agent for collection and remittance of Canadian sales taxes where the sales tax laws do not automatically require it. As such, eBay will require completion of billing agent authorization forms. A separate communication for GST/HST and QST-registered sellers will be forthcoming.

With this change in sales tax collection responsibilities, eBay aims to alleviate our sellers of the administrative burden to accurately charge and collect sales taxes on taxable sales made through the platform. eBay is taking over this responsibility for all sellers – not just those that are not registered – in an effort to simplify the experience for our community. Any questions or concerns about tax collection will be handled by eBay Customer Service.

eBay will also be responsible for collection of the Canadian sales taxes on supplies to Canada-based buyers of digitally downloaded goods, including sales from non-Canadian sellers.

eBay’s Terms & Conditions and vendor agreements will be updated to implement these changes and provide for compliance with applicable laws.

Additional information about the federal measures can be found at the CRA site or by calling their hotline: Notification and information reporting: GST/HST for digital economy businesses - Canada.ca

Please consult with your tax advisor if you have specific questions or concerns about these changes.

If you have any questions or comments, please post them on our Community forum here.

As always, thank you for selling on eBay.

The eBay Canada Team

[cjb]

I guess they need money that badly

[KingKuba]

No more buying on Ebay. Thanks Liberals.

[RGM81]

I suppose that was inevitably going to happen.

[mooneyes]

I hope the hobby doesn't turn into a complicated business.
Unless...I make a small fortune! Just joking...

[30ranfordfan]

They've been doing this for the USA for a year (or two?) now. Not the whole country, but some (most?) states. No surprise that we changed the rules here too.

Now wait for the government to also start asking us to pay income taxes on those sales, if they're over a set threshold.

[odjickfan]

Great news for places like here. Let's enjoy trading without taxes.

[RGM81]

They've been doing this for the USA for a year (or two?) now. Not the whole country, but some (most?) states. No surprise that we changed the rules here too.

Now wait for the government to also start asking us to pay income taxes on those sales, if they're over a set threshold.

At some point, it does cross the balance between a "side hustle" and something approximating a job.

[RGM81]

Great news for places like here. Let's enjoy trading without taxes.

I guess now's not the best time to announce the SCF Tax, in which 1 card from every trade gets sent to the Hockey Team Manager. LOL

[doniceage]

Sorry to see you guys and gals getting hit with this as well. I know it slowed my buying from ebay over the past year or two. I wonder how much the sales will decline with folks having to pay sales tax on those high end purchases?

P.s. What are your sale tax rate as in the U.S. it varies big time from state to state?

Thanks for posting this information. Much appreciated.

DON