eBay sellers hiding taxes

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hederman

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This instance isn't hobby related, but it can certainly apply to the hobby.

I recently bought an item off eBay and upon receiving the invoice I noticed the seller had added 13% tax to it. I found this strange for two reasons:

1) The item location is in Washington state.
2) Absolutely nowhere in the listing does it state the seller applies tax to purchases. Not in the description, not in the payment info, he doesn't even have an eBay store.

Now I did notice on the invoice the seller actually lives in BC. So I thought, "OK, if he's in Canada maybe he has a legitimate reason for taxing", but I was also charged international shipping, a $15 difference from domestic.

I fired off a message asking why, if the item is in the US, is tax being applied or why, if he is in Canada, am I being charged international shipping.

His response:

Hi There
Your (item) will be shipped from US thats why you been charged international shipping.Sales tax applies cause i pay tax like any other business if you any other questions please feel free to ask

Needless to say I've already asked for his CRA Business Number and we'll see where it goes from there. For me it's not about avoiding tax, I'll pay it, but if I had known he was going to apply it I would have factored that into my bid. The whole thing just feels shady to me.

Anyone have similar experiences?

EDIT: I should also mention the guy has 69 (six nine) feedback as a seller over 3.5 (three and a half) years. So it's not like he's a regular seller.
 
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that is annoying... I do not mind paying tax on items if you list it on the description.. as I know all ebay buys within NY state for most businesses has to charge tax... but there is a few sellers who do you even put it down to the invoice.... needless to say I wasn't happy with them :banned:
 
Report him for excessive shipping charges - if he refuses to ship from Canada, yet applies tax to your purchase - there is the tack there. Hammer him on his DSR that way.
 
Sounds to me like hes trying to recover his Ebay and Paypal fees and also take a little extra for himself on the side. I would ask to cancel the transaction and block that douche.
 
Any time someone offers to apply tax to one of my purchases, I ask for a receipt and mention the fact that a good friend of mine works for CRA (which is true). Only once have I received a receipt and in all other instances, they "offered" to remove the taxes from the purchase. If I come across as a douche, oh well.

I like the fee recovery theory. I think that's where your 13% is going.
 
A number of Canadian shops sell on eBay. I ask for their tax number, and it is furnished to me without argument.

A cross-border sale is ineligible for taxation by the vendor. The authority to whom he remits taxes is NOT the authority who ultimately will be collecting taxes on the sale - if he's a Yank, the Canadian fed will be taxing the sale, and vice versa. If he's charging you his income taxes? Report the prick.
 
Something doesn't add up.

Even if he were a Canadian seller, selling you American based goods - and could actually back up the International Shipping / CRA number..... as an Ontairo resident (vs him being a BC resident) I would expect that you'd only be paying the GST, not the full 13% HST.

Something isn't right.
 
I've done several online deals within New York State. Those would be eligible for sales tax. I've never had to pay extra for that tax, because it has always been understood as included in final sale price.

It is the same when I go to local card / memorabilia shows. Those vendors all have sales tax IDs, and are responsible for collecting NYS sales tax. I've never been charged above the sticker price because, again, the price quoted is the total price.

I think I have to agree, sounds like the seller is just trying to squeeze more profit out of the sale.
 
He's screwing you, plain and simple. If items are being shipped from the US, you do not pay HIM tax. You might get charged duties and taxes when your item arrives
 
You can't charge Canadian sales tax if he is reporting the card is being shipped from the USA.....
I once ( probably not the same guy ), bought a card off him, US seller, nailed me for HST ( which he clearly stated in the invoice. When I replied he told me he lives in the US, but works in Canada where he mails the items from. Just like you his shipping charge was $6 dollars more.
When I questioned him he changed his story to say " I have to recoup my fees as you got the card for nothing "
Copy/Paste send to Ebay and the seller was removed
 
Well no surprise here. Got a message from him saying he couldn't provide the CRA information (in other words he has none), but he would drop the taxes as they weren't listed in the auction.

I consider it a minor victory, although I'll probably still get dinged when it crosses the border. And so help him if he declares the customs value even 1 cent over what I paid.
 
I do find it really odd that you were charged the 13% sales tax, when the our states sale tax is only 8.2%
 
Amsfan said:
I do find it really odd that you were charged the 13% sales tax, when the our states sale tax is only 8.2%
Click to expand...
If the seller had been a legitimate business operating out of Canada he would have been justified charging the 13% to me. Since Ontario moved to the Harmonized Sales Tax (HST) there is no longer a separation between GST (5%) and PST (8%), except on very specific things.

Basically, the guy wasn't happy with the price and he tried this scheme to get some extra money out of me. I don't mind paying taxes to the government, but I'll be damned if I'm going to let some douchebag weasel an extra $40 out of me.
 

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