eBay is Collecting Canadian Sales taxes from eBay Canada-based Buyers
Due to legislative changes in Canada’s tax laws, eBay will be required to charge and collect Canadian GST/HST, QST, and PST on applicable sales to Canada-based buyers, effective July 1, 2022. Please note that these changes will affect most e-commerce companies that operate in Canada.
Starting on July 1, 2022, for all sales of tangible goods sold within Canada, eBay will be collecting the Canadian sales taxes (GST/HST/QST/ PST) from Canada-based buyers on behalf of Canada-based sellers (irrespective of their tax registration status) and remitting the tax to the appropriate tax authorities. eBay will also be responsible for collection of the Canadian sales taxes on supplies to Canada-based buyers of digitally downloaded goods, including sales from non-Canadian sellers.
To ensure that the correct amount of tax is applied on your eBay purchases, please confirm that your account information is up to date. Upon the launch of this sales tax implementation, eBay won’t be able to support and accept exemptions for buyers who qualify for exemptions, including resale exemptions, provincial government entities, First Nations or others. Buyers who qualify for exemptions can apply for a rebate from the respective tax authorities for taxes on their exempt purchases.
eBay’s Terms & Conditions will be updated to implement these changes and provide for compliance with applicable laws.
Additional information about the federal measures can be found at the CRA site or by calling their hotline: Contact us: GST/HST for digital economy businesses - Canada.ca
Please consult with your tax advisor if you have specific questions or concerns about these changes.