Taxes? What Taxes

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rookjunkie

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So I won a card on ebay and at a very good price too I think.

Went to checkout and the guy wants to charged 10.90 shipping for a $33.88 card. I went to re read the item description and sure enough he did write at the bottom for any item ending over $30 he will have to charge additional $7 for tracking.l Fair enough I missed it so no problem although I do think he did set the amount quite low ($30?), but he did state it up front, so my mistake for overlooking it.

but on top of that he also wants to charge taxes. 13% on the card as well on the shipping. Should the sellar be charging tax on the shipping and handling (since it is kind of an arbitrary figure anyway)?

I am always suspicious of people who want to charge taxes. If it is a registered business and they report their income for taxation purposes then fine, but not if they are only doing it to line their own pocket. In this case I asked for his GST number (that's what I should ask for, right?) before making payment.

also is shipping and handling fees subject to taxation? I really am not sure. Can anybody clarify?
 
I know if for example, I buy a card from someone in new york state, and I live in new york state, I am subject to new york state sales tax (7%), but that is for the sale itself, as for shipping Im unsure
 
I used to charge tax on all sales within Canada. I had a registered business but shut it down a few years back. Asking for the GST number is your right and if he declines to provide it you can refuse to pay the taxes. As for the shipping being taxable, I'm not sure. However, you'll be arguing over 80 cents or so...
 
frankiefives said:
I used to charge tax on all sales within Canada. I had a registered business but shut it down a few years back. Asking for the GST number is your right and if he declines to provide it you can refuse to pay the taxes. As for the shipping being taxable, I'm not sure. However, you'll be arguing over 80 cents or so...
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yeah I know what you mean. I am more concern about paying legitimate taxes.

If it is a legit business, no problem, otherwise, I have an issue with it.
 
If he is Ontario (you are in Ontario), he can charge you 13% (5% GST and 8% PST). If he is in another province, he can only charge you GST.
 
LT21Titans27 said:
I know if for example, I buy a card from someone in new york state, and I live in new york state, I am subject to new york state sales tax (7%), but that is for the sale itself, as for shipping Im unsure
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I know that eBay has started doing this to same state sales, but for New York it isn't this way for everything! There is only tax on RETAIL items sold in NYS to NYS buyers. There is no tax on secondhand items but people do not understand this and charge you anyways.

For example, if you are selling an unopened box of cards, depending on how it was purchased, you can charge tax. However if you have opened a box of cards or packs and opened them, the singles cannot be taxed because they are not retail products at that point. Or think of it this way, you buy some card from a garage sale or flea market for $5, but then sell it on Ebay and you charge tax?

What ends up happening is that tax is collected by the seller in the Paypal payment (or other form) and since the seller isn't selling a retail product, cannot claim that tax as being collected on their taxes. That basically equates to fraud without the person knowing it.

Sorry for the rant. Things may have changed, but that is how I know things to be.
 
I have a Tax ID for New York.Anytime I sell cards whether it is a box of cards or singles to anyone who resides in New York state I must collect 8% sales tax.This is what my accountant told me.
 
Stadium Sports said:
If he is Ontario (you are in Ontario), he can charge you 13% (5% GST and 8% PST). If he is in another province, he can only charge you GST.
Click to expand...

Not entirely true.

Here's how it works up to June 30, 2010:
Any GST registered vendor in Canada must charge GST.

Any HST (Harmonized Sales tax) registered vendor in Canada (this only includes those in Nova Scotia, New Brunswick, and Newfoundland and Labrador), must charge GST (5%) to purchasers outside of those provinces. They must charge HST (13%) to purchasers in those four provinces.

After June 30, 2010:

On July 1, 2010, Ontario and BC adopt the HST, which is simply a combined PST/GST. The same rules as above apply. A registered vendor in B.C./Ontario will charge GST only on sales made to residents of Alberta, Sask, Manitoba and Quebec. They will charge HST (12% in BC and 13% in Ontario) on sales made within their own provinces or those made to other HST provinces (due to the "Place of Consumption" rules).

The GST and HST will apply to both the cost of the item and the shipping. This is because the GST is a goods and services tax. The card is the good, the shipping is the service. HST is exigible on the same base of goods and services as GST.
 
Revenue Canada has won the right to go after anyone on Ebay who is a power seller. (For three straight months I think) for taxes if they so choose.
 
Kehfee said:
Revenue Canada has won the right to go after anyone on Ebay who is a power seller. (For three straight months I think) for taxes if they so choose.
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CRA has always had that right, they just didn't have an easy way to do it. What they won was the ability to access information (sales data and contact info) from ebay about its powersellers located in Canada. This makes much simpler for them to pick who they want to audit.

But, this is related to a completely different tax - the income tax. This thread is about sales tax.
 
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Yeah I looked it up. Check NYS Publication 750 from 2/08, it lists everything that is applicable for sales tax. Of those listed, the one that would pertain to sports cards is:

"Retail sales of tangible personal property"

Either way, I suppose the state isn't going to complain if you collect the tax, as long as they get all of it. Unfortunately, sports cards or sports memorabilia is not something that is cited anywhere, closest maybe would be "photos" but that is concerning photographers that sell *their* photos. However, this document has the some better information:
http://www.tax.state.ny.us/pdf/advisory_opinions/sales/a97_07s.pdf

Section 1101(b)(4) of the Tax Law defines the term "retail sale", in part, to mean "(i) A sale of tangible personal property to any person for any purpose, other than (A) for resale as such or as a physical component part of tangible personal property . . ."
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Even more interesting:
http://www.tax.state.ny.us/pdf/publications/sales/pub843.pdf

Sales made at the remote auction event are not subject to tax.
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Which ebay would likely be a place like this? This document states that a person using an online auction site (the example is not ebay, but another) does not make them a vendor, and do not have to collect sales tax.
http://www.tax.state.ny.us/pdf/advisory_opinions/sales/a99_49s.pdf

But then, form IT-201 says this:
Most tangible personal property is subject
to tax. Some examples are: cigarettes and
other tobacco products; alcohol; candy;
clothing; books; electronic equipment;
furniture; collectibles (for example, stamps,
coins, etc., bought for collections);
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Hmm another thing says that NYS tax is not calculated by the cost of the item, but the cost + shipping! Egads.

The sales tax is generally computed on the price you paid for an item or
service, including any shipping or handling charges made by the seller.
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Well that's about all I can find. Either way, it still only talks about retail products, not second-hand with the exception of items that sell for over $600 at garage sales. I hope I didn't OT this too much.
 
Tripredacus said:
Yeah I looked it up. Check NYS Publication 750 from 2/08, it lists everything that is applicable for sales tax. Of those listed, the one that would pertain to sports cards is:

Well that's about all I can find. Either way, it still only talks about retail products, not second-hand with the exception of items that sell for over $600 at garage sales. I hope I didn't OT this too much.
Click to expand...


Interesting, but not applicable to the original post. This thread started out with respect to Canadian Sales Tax. Any reference to State sales tax, while interesting, could very easily be misleading.
 
I'll chime in to say this: Jeremy is absolutely correct with regard to Canadian sales taxes.

It is also reasonable to ask for the GST number. If he refuses, you can refuse to pay the taxes.
 
It should be noted that singles are taxable as they are not deemed to be a second hand item by CRA. The local rev canada collector once pointed out the info but be damned if I'm looking through the site for it lol.

Darren
 
gomaz said:
Not entirely true.

Here's how it works up to June 30, 2010:
Any GST registered vendor in Canada must charge GST.

Any HST (Harmonized Sales tax) registered vendor in Canada (this only includes those in Nova Scotia, New Brunswick, and Newfoundland and Labrador), must charge GST (5%) to purchasers outside of those provinces. They must charge HST (13%) to purchasers in those four provinces.

After June 30, 2010:

On July 1, 2010, Ontario and BC adopt the HST, which is simply a combined PST/GST. The same rules as above apply. A registered vendor in B.C./Ontario will charge GST only on sales made to residents of Alberta, Sask, Manitoba and Quebec. They will charge HST (12% in BC and 13% in Ontario) on sales made within their own provinces or those made to other HST provinces (due to the "Place of Consumption" rules).

The GST and HST will apply to both the cost of the item and the shipping. This is because the GST is a goods and services tax. The card is the good, the shipping is the service. HST is exigible on the same base of goods and services as GST.
Click to expand...

I checked my calendar - it's March 17th. The post was correct.

If you want to get into the nitty-gritty - even after July 1st, only Ontario businesses that obtain a GST number can charge the tax because as you know, there is an exception (Under $30K).
 
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Stadium Sports said:
I checked my calendar - it's March 17th. The post was correct.

If you want to get into the nitty-gritty - even after July 1st, only Ontario businesses that obtain a GST number can charge the tax because as you know, there is an exception (Under $30K).
Click to expand...

You are right, it was.

I interpreted your comment: "If he is in another province, he can only charge you GST." to mean that vendors in others provinces only charge GST. So I added the Maritime provinces to the discussion.

Thanks for reminding me about the current date....I wondered how missed Spring :rolleyes:

With respect to your nitty-gritty comment, that is why you will notice that I said "registered vendors".
 
Sorry - since the OP asking the question was from Ontario, I was answering his question as if he was from Ontario.

As you are clearly in the tax business, you already know that you can still be a "registered vendor" and exempt for GST (see federal web-site). If you have one employee - you have to register with the feds and can still be exempt from GST requirements. Regardless, all businesses in Ontario still require a Vendor's Permit - the business/retail licencing/registration requirement in Ontario.


Happy Spring.
 
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