eBay Sellers Who Charge GST...

geerhed19

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Bought an item the other day and the listing stated that GST was mandatory. Not a problem, I have no issue paying tax on items. However, I happened to notice that the seller was also charging GST on the shipping/handling. I'm sure this has probably happened to me before and I just never caught it. My question is, are they allowed to charge GST on shipping? I would have thought it was only for the goods. If anyone has some insight on the matter I'd appreciate it.
 
I am not sure about the right answer.But I would say that yes they can.If Canada Post can charge them(the eBay seller) GST on shipping.Than they should be allowed to as well.After all it is a Good & Service tax.But again I am not 100% sure either.
 
Yes. The entire transaction is GST eligible. To put it another way - when he goes to mail it, he's gotta pay GST on the postage he buys. That is a cost borne by YOU.
 
I am a seller on eBay and I charge tax in Canada. Shipping is subject to all taxes. GST, HST or both PST & GST depending on where you live.
 
Shipping is a service. Services are taxable under the Excise Tax Act (GST Portions) unless exempted, which the one in question is not.
 
I guess I should clarify-I would expect that GST charged on postage gets included in the S/H, I include it when I sell something. I just don`t understand why it wouldn`t already be worked into the shipping and handling, that`s what I do.
 

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