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Welcome to NEW TAXES 2019 Canucks!!
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56D500boy
Posted 2019-01-03 1:21 AM (#576175)
Subject: Welcome to NEW TAXES 2019 Canucks!!



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I bought three things for my 56 Dodge on eBay today. The first one showed a line for "Tax" and I said "Huh, the seller must be in Washington State (where I get my eBay stuff sent). It was only a couple of bucks so I let it slide. Later in the day, when the second purchase also showed a tax, I got annoyed, checked where the seller was (NOT in Washington State) and contacted him saying "WTH Dude! I'm not in your state, don't charge me tax!!". When it happened a third time, I was getting concerned and contacted eBay customer service. I also contacted the last seller and complained to him too.

I spent about half an hour with a young woman with eBay customer service trying to explain the problem and that it hadn't happened last week. Initially she said it was the sellers' fault, that they had done something to trigger the tax. By this time, I had responses from the last two sellers and they both said that they hadn't done anything, it wasn't them. I told the customer service woman this and she said that she would have to talk to somebody above her pay grade to figure this out and get back to me. So we hung up.

She phoned back about 10 minutes later and told me "Sorry, sir, it's your Canadian government. As of January 1st, they have imposed a tax on all internet sales that eBay has to charge and collect on their behalf."

I was livid.

I've tried to find out more about this new tax but so far no luck. Justin, your days are numbered.

So, in the meantime, be aware. The tax seems to be about 10% so between that and the Canadian dollar tanking, I might have found a way to wean myself off buying on line.



Edited by 56D500boy 2019-01-03 1:24 AM
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Old Ray
Posted 2019-01-03 8:52 AM (#576184 - in reply to #576175)
Subject: RE: Welcome to NEW TAXES 2019 Canucks!!



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Dave, At a first very quick read (with a head cold) of the enclosed info it might seem that this is only applicable to Quebec purchasers?
Please see if you can make sense of it? Thanks. 

https://www.bdo.ca/en-ca/insights/tax/tax-articles/charging-canadian-sales-tax-online-sales/

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56D500boy
Posted 2019-01-03 9:47 AM (#576189 - in reply to #576184)
Subject: RE: Welcome to NEW TAXES 2019 Canucks!!



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Old Ray - 2019-01-03 8:52 AM

Dave, At a first very quick read (with a head cold) of the enclosed info it might seem that this is only applicable to Quebec purchasers?
Please see if you can make sense of it? Thanks. 

https://www.bdo.ca/en-ca/insights/tax/tax-articles/charging-canadian-sales-tax-online-sales/




Several provinces beside Quebec are listed, including BC:

"British Columbia PST

BC PST applies at a rate of 7% on goods, software and certain services that are purchased or used in the province. Online retailers are required to register to charge and collect PST if they carry on a business through an establishment in BC and make taxable sales in BC. Businesses located in Canada but outside BC need to register if they meet all of the following conditions:

*sell taxable goods to customers in BC;
*solicit orders for sale to purchasers in BC by advertising (specifically targeted for the BC market) or other mean
*accept purchase orders (including over the internet) for taxable goods from customers located in BC; and
*deliver goods into BC, whether physically or electronically, or through a third-party courier.

Small sellers are not required to register for PST in BC provided certain conditions are met. Generally, a small seller is defined to be a person who is located in BC but does not make retail sales in an established business location and has $10,000 or less in retail sales per year."
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miquelonbrad
Posted 2019-01-06 12:39 AM (#576331 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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Was it a part made of steel or aluminum? Sounds like the "tax" you are referring to could be the tariff being charged on steel/aluminum goods from the U.S., thanks to good ol' Mr Trump. I think it is around 10%...
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56D500boy
Posted 2019-01-06 2:16 AM (#576332 - in reply to #576331)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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miquelonbrad - 2019-01-06 12:39 AM

Was it a part made of steel or aluminum? Sounds like the "tax" you are referring to could be the tariff being charged on steel/aluminum goods from the U.S., thanks to good ol' Mr Trump. I think it is around 10%...


Don't think so

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56D500boy
Posted 2019-01-08 2:30 PM (#576500 - in reply to #576332)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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UPDATE:

I went down to pick-up the stuff that I had bought on January 2nd(the arrived sometime yesterday). When I came back into Canada, I asked the Customs guy "So what's the deal with the sales tax?". He was all deer in the headlights as I explained to him that I had paid says tax even though none of the packages came from Washtington state. He replied with something like "Well,it's not us, and it's not British Columbia. I think the US government passed a law that requires states to collect sales tax for all internet sales, regardless of origin or destination".

Hmm...

I guess I will try to order out of Oregon (no state sales tax) then.
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Powerflite
Posted 2019-01-08 7:55 PM (#576510 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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It's not a US law. Federal government doesn't get involved with sales tax. That is purely up to the states in question. I don't currently pay sales tax on interstate stuff. It could be a Washington State thing, but you should be able to track it down somehow. If someone is charging you money, it should state where that money is going - and you should be able to find out what it is for. The federal government would charge only for customs duties, but inbound goods typically are charged by the country that they are going into - i.e. a Canadian customs tax.

Edited by Powerflite 2019-01-08 7:59 PM
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56D500boy
Posted 2019-01-08 8:00 PM (#576511 - in reply to #576510)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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Powerflite - 2019-01-08 7:55 PM

It's not a US law. Federal government doesn't get involved with sales tax.


Maybe not the US Federal government but as of June 21, 2018, the United States Supreme Court apparently got involved:

https://www.nolo.com/legal-encyclopedia/50-state-guide-internet-sale...



Edited by 56D500boy 2019-01-08 8:01 PM
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Chrycoman
Posted 2019-01-11 7:17 AM (#576583 - in reply to #576175)
Subject: RE: Welcome to NEW TAXES 2019 Canucks!!



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I "purchased" a 1962 Acadian brochure from a seller in New York state. The costs -
Brochure - US$7.49
Shipping - US$4.95
Total - US$12.44
Tax - US$1.06

The tax works out to 8.5%

Sales tax is generally computed based on where the buyer lives, not the seller. The New York state tax came out to 8.5%, but as he is the seller, he does not count.

My shipping address is in Point Roberts, WA. The base sales tax in Washington is 6.5%, but municipalities can add to the 6.5% to a maximum of 8.5%. And Point Roberts has their sales tax at set at 8.5%.

So, it's not Justin's doing. He has no say on what taxes are charged south of the 49th.

It looks like someone somewhere in eBay got notified that their sellers are responsible for collecting sales taxes. The checkout process was set up by eBay as the program is their responsibility. And it works for purchases in Canada and Europe as well.

I have shipping addresses on file for Ontario, BC and Washington. The sales taxes for each worked out to 13% in ON (HST), 5% in BC (GST, not PST) and 8.5% in WA. So they now collect US state taxes plus Canadian GST and HST. They don't collect PST in BC, but not sure about SA and MB. They also collect for the EU.

Did some more digging and eBay has the system set up that they take the moneys collected for state/provincial/GST taxes and forward the needed funds to the various governments. They record the state, amount of sale and tax collected.
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hemidenis
Posted 2019-01-11 5:05 PM (#576599 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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This thread should be flagged as a political issue! Ha

Well this is the moment when politics (according to some, got nothing to do with the hobby) join together to bite you in the botox.. Government appreciate your help, they got to get the money from somewhere to pay social services ...

I got taxed very often now, form guys in different states, even from guys from China.
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Chrycoman
Posted 2019-01-12 2:30 AM (#576626 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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Sadly, all this is due to the various levels of government trying to catch up to the world of the internet.

When eBay first started you won/purchased an item and the seller advised you of the costs, including sales tax, where applicable. You, the buyer, mailed your payment to the seller. The seller then recorded your payment received and mailed your item to you. If mailed in the US to Canada, US Post mailed the parcel to Canada, where Canada Customs took the parcel and advised you of the import duties on the parcel. You paid the duties, you got your parcel.

Can remember living in Winnipeg forty years ago and having to take my Customs notice down to the Canada Customs office in the Canada Post Office Building, declaring the item as mine, and paying the outstanding duties. Then heading home with my loot. This was before eBay and instead you mailed letters to sellers to find out if they had what you were looking for. And checking the For Sale section of various old car magazines was another way how you found out what was for sale.

With the rise of the internet and the use of credit cards to cover payment, the various Customs departments and sales tax staff were circumvented. And free trade agreements eliminated many customs duties.

So, we are now faced with various levels of governments trying to collect what is due to them. Nothing new, just trying to claim back what was rightly theirs. And in the case of eBay, the governments include the U.S.A., Canada, and the European Union. The list is bound to expand.


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gradford
Posted 2019-01-25 3:41 AM (#577364 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!


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Regardless of who's fault the new WA tax is, it's still time to get rid of Justin.
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mikes2nd
Posted 2019-01-25 9:36 AM (#577368 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!


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most of the stuff were buying now online is collecting taxes from that local state... Small sellers are still not paying taxes, out state says we should be paying it voluntarilly.
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56D500boy
Posted 2019-03-25 8:02 PM (#579914 - in reply to #577368)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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Slight Update:

This morning I bought a 1955 Dodge showroom album (book) from Jan in Germany. Except I didn't notice that he was in Germany, so assuming that the seller was in the US, I used my US shipping address. Got dinged the "eBay Tax". Oh well, hate it, but whatchagonnado?

After talking to my NOS parts guy (who has a 55 Custom Royal Convertible) this AM, I bought a second copy of the book for him. However, this time I noticed that the seller was in Germany and used my Canadian address for the shipping. Magically, no "eBay Tax". SO I can conclude that as long as the seller and the receiver are not in the US, eBay doesn't add the tax. Hope that stays true.

"Your Mileage may vary" (YMMV)

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mikes2nd
Posted 2019-03-26 12:52 AM (#579922 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!


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yeah taxes on ebay coming soon... amazon getting us more and more...
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56D500boy
Posted 2019-03-26 2:06 AM (#579924 - in reply to #579922)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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mikes2nd - 2019-03-25 9:52 PM

yeah taxes on ebay coming soon... amazon getting us more and more...


Umm...Taxes on eBay purchases are already here, at least for me when I buy something and have it shipped to Point Roberts WA

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Chrycoman
Posted 2019-03-26 3:40 AM (#579926 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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It's not an "e-Bay tax" nor an "Amazon tax" nor a "Justin tax". E-Bay and others are collecting sales taxes for various levels of government (US state, CDN GST/HST, and EU) and passing the funds along to the governments involved. E-Bay is recording the taxes as they are charged and collecting the moneys when the item is paid for. Check your receipt on your next purchase from e-Bay. Also, the tax to be collected is based on your shipping address. If you use a US shipping address, the tax collected will be for the state to which the item was shipped. For Canada, they supposedly collect the GST or HST applicable for the province involved. No mention of collecting PST.

Last week I picked up six items purchased from six different e-Bay sellers and shipped to me at an address in Point Roberts. Each of the six items had issued a receipt that included the cost of the items, shipping costs, and state tax. The cost of the items, shipping and Washington taxes was paid when I purchased to items on e-Bay, and no further charges were levied by e-Bay or any government. The firm that agreed to accept my shipments charged a small handling fee. And when I went through Customs back into Canada, no taxes were charged, not even GST.

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Powerflite
Posted 2019-03-26 10:16 AM (#579933 - in reply to #576175)
Subject: Re: Welcome to NEW TAXES 2019 Canucks!!



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It's strange that you are charged a tax by Washington because I have never been charged a tax from an inter-state purchase. The only time I pay a tax is if the company has a residence within my own state. Individual Ebay sellers never charge a sales tax, even if they are within my own state because the sales volume is too low for states to bother with. But if they sell a lot, they have to charge a sales tax to those people within their state. So, I would expect that Canadians with shipping boxes within Washington wouldn't have to pay a sales tax for purchases outside of Washington, but that doesn't seem to be the case. That is definitely different than how things work for US citizens. So it seems that Ebay knows your true address and is charging you a customs fee, whether it is shipped to Canada or not.
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