eBay Tax Question:

[samosa4u]

Originally Posted by BobC

Did you say you are paying the tax as a seller, not as a buyer?

Yes, sir. I am paying 13% tax on my eBay seller fees. Here is more on this below:

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:

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): 14.975%
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 result 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.

Anyways, I was just curious to see if you Americans were also paying tax on your eBay seller fees, but you aren't. For years our contracting party was eBay International AG, which is located in Switzerland I believe, and we didn't have to pay any tax because of that. I think you Americans are contracting with eBay Inc., right?