Shopping Discussion

HST on ebay purchases from Canada

  • Last Updated:
  • Feb 28th, 2018 3:25 pm
[OP]
Deal Addict
Sep 19, 2009
2074 posts
872 upvotes
Toronto

HST on ebay purchases from Canada

I noticed that many Canadian sellers on ebay are charging HST now. I believe the policy has changed on July 1 2017.

Of course, I can buy the same item form international sellers, usually far cheaper than a Canadian seller would list it. With the introduction of HST, those items become even less competitive.

Are there any real reasons to prefer a Canadian seller under these circumstances? I mean excepting a faster shipping time.
7 replies
Deal Addict
Jan 16, 2016
1464 posts
1123 upvotes
Hamilton, ON
Technically you are supposed to report on your income tax return you purchased products that were not subject to HST so you can be taxed HST... iirc... but then again does anyone actually do this?
[OP]
Deal Addict
Sep 19, 2009
2074 posts
872 upvotes
Toronto
Altera wrote: Technically you are supposed to report on your income tax return you purchased products that were not subject to HST so you can be taxed HST... iirc... but then again does anyone actually do this?
I doubt it but anyway can you point us at CRA's income tax interpretation bulletin you are referring to?
Deal Addict
Jul 3, 2017
3860 posts
2787 upvotes
HST applies to all goods purchased in or imported to Ontario. If a seller in another country does not charge the HST, it is supposed to be applied by the CBSA on import. If they miss it, you are are supposed to self-report (I think one person almost did that once, but then they forgot). So in theory there is no tax difference between Canadian sellers and U.S. sellers.

If a company in another province that doesn't have HST sells you something, they are supposed to charge you Ontario HST. In the distant past before GST, out-of-province companies had the advantage of not having to charge PST. But since GST now applies to the whole country, and all companies have to report it to the CRA, there is no escaping the requirement to charge HST when shipping to Ontario.

You are allowed to import goods by mail or private shipper up to $20 free of HST, and of course you have higher limits if you purchased the goods in person on an out-of-country trip.
[OP]
Deal Addict
Sep 19, 2009
2074 posts
872 upvotes
Toronto
Exp315 wrote: If they miss it, you are are supposed to self-report (I think one person almost did that once, but then they forgot). So in theory there is no tax difference between Canadian sellers and U.S. sellers.
Same question as before, can you point us at CRA's income tax interpretation bulletin you are referring to?
Deal Addict
Jul 3, 2017
3860 posts
2787 upvotes
andrew4321 wrote: Same question as before, can you point us at CRA's income tax interpretation bulletin you are referring to?
Yes I can. As can anyone who is not too lazy to type "HST self assessment" into a Google search box.
Jr. Member
Aug 29, 2011
193 posts
148 upvotes
GTA
Just because they are collecting HST doesn’t mean it is being remitted to the government. It’s another price scouge. Much like a flea market vendor asking for HST. Pure profit for the them as they have no HST account or intention of remitting it.
The Duke
Deal Addict
User avatar
Mar 9, 2012
3562 posts
2229 upvotes
Kitchener
Exp315 wrote: Yes I can. As can anyone who is not too lazy to type "HST self assessment" into a Google search box.
Right...but obviously the reason for the changes are because 1) very few know about having to fill in a return within a month after a purchase and 2) very few, even if they know, are not going to bother filling in a return and 3) it's not a simple matter of easily discerning what would be taxed or not. Exception might be a motor vehicle.

And googling "HST self assessment" doesn't come up with a clear answer to the typical Joe that doesn't understand taxation in this country. A link would be nice to the point you're trying to make.

Like, how many are going to pay tax for clothing purchased when they visited a different province?
Why can't we all just get along?

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