21 September, 2006 | 16:44
Over the next few days, we will be introducing sales tax support for Canadian sellers on the eBay platform. Sales Tax is a free, optional feature that enables sellers to specify a sales tax rate for each Province or Territory.
How will eBay.ca's Sales Tax work?
You can use the eBay tax table to specify a unique, blended sales tax rate for each Canadian Province or Territory in which you are required to charge sales taxes.
When a prospective buyer views your items, your tax rates will be disclosed. When your buyer goes through eBay Checkout after purchasing one of your items, the system will automatically calculate the correct sales tax amount based on the buyer's shipping address and the rates that you specified in your tax table. The sales tax amount will be included in the total amount requested from the buyer during eBay Checkout.
How can I set up a Tax Table?
You'll be able to manage your Canadian tax table from within the "Preferences" area within My eBay.
Note: You must use eBay.ca to manage your Canadian tax table. It cannot be accessed from eBay.com or other eBay sites.
How can I manage Sales Tax from the Sell Your Item form?
If you've never modified your Sales Tax table within My eBay, you can still enter a tax rate for a single Province or Territory in-line within the Sell Your Item flow.
If you've set up values in your Sales Tax table in My eBay, you'll be able to either charge tax according to your Sales Tax table settings (the default), or to turn off sales tax for that item only.
Where does Sales Tax appear in the Sell Your Item form?
You can add Sales Tax to your view of our new Sell Your Item form, by clicking Show/Hide options and selecting "Other".
On the old Sell Your Item form, Sales Tax appears on the Payment and Shipping page, below the shipping area.
What if I don't need to collect sales tax?
If you aren't required to collect and remit sales tax in Canada, then you don't need to do anything. Sales Tax rates are initially set to zero as a default for all sellers.
Can I set up more than one tax rate for a single Province or Territory?
Only one tax rate can be applied for any given Province or Territory (this tax rate will be exposed to the buyer as a single line item labeled "Sales Tax"). Accordingly, sellers who must collect more than one sales tax for a given region must enter a blended or total tax rate in their tax table.
Example 1. Suppose a seller needs to collect 8% PST and 6% GST from Ontario residents. This seller would enter a combined tax rate of 14% for Ontario residents.
Example 2. Suppose a seller needs to collect 6% GST and 7.5% QST from Quebec residents. Since QST is applied to both the item price and the GST amount, the applicable effective rate works out to 13.95%.
Can I charge sales tax on shipping and handling as well?
If a specific Province or Territory requires that you charge sales tax on shipping and handling charges, select the "Also charge sales tax on S & H" check box next to the rate. If you do not select this check box, sales tax will be charged on the item price only.
When do changes take effect?
Changes that you make in your tax table do not affect your live listings. Only items that you list, relist, or revise after submitting your changes will be affected.
Do I have to list my item on eBay.ca in order for my Sales Tax preferences to be applied?
No. Although your tax table can only be set up on eBay.ca, these settings will be applied to any listings created on either eBay.ca or eBay.com.
Does my buyer have to enter checkout on eBay.ca in order for sales tax to be properly applied?
No. Sales tax will be applied according to your settings, regardless of whether your Canadian buyer happens to be using eBay.ca or eBay.com.
Will my Sales Tax settings show up on my listings?
On eBay.ca, your Canadian Sales Tax rates(s) will be displayed on the item page.
On eBay.com, your Canadian Sales Tax rate(s) will be displayed on the item page only when viewed by a member with a Canadian shipping address.
What if some of my listings are taxable and some are not?
Once you've set up a tax table in My eBay, you can override the tax settings for any given item during the Sell Your Item flow on an item-by-item basis.
Note: In order to override sales tax on an item, you must list that item on eBay.ca. Items listed on eBay.com will always have sales tax applied to them, according to your eBay.ca tax table settings.
How do I know if I should charge Sales Tax?
As a condition of using the eBay Web site, sellers agree to comply with all applicable domestic and international laws, statutes, ordinances and regulations regarding their own listings. If you're not sure whether or not you should be collecting and remitting Sales Tax, please consult a tax professional.
There's a related member discussion pinned to our "Selling on eBay board" available at http://forums.ebay.ca/thread.jspa?threadID=100027819&tstart=0&mod=1156989260426
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