Sales tax on shipping?

X-Head

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So I recently won an item on ebay and today the seller invoiced me. However theres a charge of sales tax on the total including shipping. Is this allowed? I won the item quite inexpensively and the tax is more than the cost of the card.
 
Jon,when we mail items out,the post office charges sales tax on every item sent within Canada.If it is going to the U.S.A. or overseas than they tax all postage under $5.00 and if it is over than there is no tax.So I would say if they are a business and they are providing a service they should be able to charge tax.We seem to be taxed on just about every service you can imagine of. Hopefully they are submitting their tax and not just using it to collect a bit more on the sale.Good luck with that.Thanks,Winston.
 
If they're charging tax they have to be registered with the CRA. Ask them for their business number.

Also, tax is charged on the TOTAL amount (price+shipping) so they would be in the right there.
 
What confuses me here is that I've been charged tax from sellers before, but it was only on the cost of the card itself, not the shipping. I was unaware sellers were allowed to do so.
 
What confuses me here is that I've been charged tax from sellers before, but it was only on the cost of the card itself, not the shipping. I was unaware sellers were allowed to do so.

Jon,

I have charged tax before, but on the good only. I have never charged tax on the shipping/handling. I would hit them in the DSR portion of the feedback.

Shawn

Woo Hoo Post #1700
 
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