Overview
When you sell on eBay, you’re responsible for complying with all applicable tax laws.
The Canadian Federal government has enacted legislation mandating that ecommerce marketplaces collect and remit sales tax for any purchases in Canada. Effective July 1, 2022, for all sales of tangible goods sold within Canada, eBay will be collecting the Canadian sales taxes (GST/HST, QST and PST) from Canada-based buyers on behalf of Canada-based sellers (irrespective of 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 on sales from non-Canadian sellers. eBay's terms and conditions and vendor agreements will be updated to implement this change and provide for compliance with applicable laws.
Sellers’ tax responsibilities
You are responsible for paying all fees and taxes associated with using eBay as an eBay seller. For more information on eBay’s tax policy and your obligations, see our Tax policy and User Agreement.
Your tax-related responsibilities may include:
- Paying income tax on eBay sales
- Informing overseas buyers about import charges
For more information:
- Visit our Community forum on this topic here.
- Email your questions to: CanadaPST/GST@ebay.com
- Click here to download the Billing Agent Authorization Tax form if it applies to you.
Collecting Sales Taxes on Sales Made Through a Digital Platform in Canada
If you sell to buyers in Canada, eBay will be responsible for the collection and remittance of the federal sales tax (GST/HST) and provincial sales tax (PST or QST) on your behalf on your sales made through our platform. As of July 1, 2022, eBay is responsible for collecting Canadian sales taxes on all transactions within Canada and also on sales to Canada-based buyers of digitally downloaded goods, including from global sellers.
Learn more about sales taxes from your tax advisor.
Starting on July 1, 2022, the way taxable transactions are processed and how taxes are collected for remittance are as follows:
- In jurisdictions where eBay is required to collect sales tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.
- Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.
- A record of the sales tax portion of the order will be available on the Seller Hub Order details page and through our Download order report.
Refunds to a Buyer
If the buyer requires a refund—cancellation, full refund, or partial refund, eBay will refund the sales tax to the buyer in these cases since we collected the sales tax on the original transaction.
Digital Platform Sales Tax Collection FAQs
In which provinces does eBay have sales tax collection obligations?
- Alberta: 5% GST
- British Columbia: 5% GST, 7% PST
- Manitoba: 5% GST, 7% PST
- New Brunswick: 15% HST
- Newfoundland and Labrador: 15% HST
- Northwest Territories: 5% GST
- Nova Scotia: 15% HST
- Nunavut: 5% GST
- Ontario: 13% HST
- Prince Edward Island: 15% HST
- Quebec: 5% GST, 9.975% QST
- Saskatchewan: 5% GST, 6% PST
- Yukon: 5% GST
As of July 1, 2022, eBay will be responsible for collecting Canadian sales taxes (GST/HST, QST and PST) on all taxable transactions for Canada-based buyers, in all 13 provinces and territories.
Sales of tangible goods shipped from within Canada to Canadian buyers, and sales of digitally downloaded goods to Canadian buyers from any sellers, including global sellers, are subject to sales tax at the following rates:
Why does eBay have a tax policy?
There may be legal implications, fees and tax obligations associated with using eBay. Remember that it’s your responsibility to understand and comply with relevant laws and regulations, and that you have to pay relevant fees and taxes. Our full policy explains how and when eBay charges applicable taxes, and provides additional guidance on your tax obligations, but we recommend you talk with a tax professional if you have any questions.
Can eBay give me advice on my tax scenario?
If you are selling on eBay as a business, we strongly recommend seeking professional advice about your tax obligations. You can also review the eBay Tax policy in the Help Hub.
What if my buyer has questions about the tax?
You can refer them to the eBay Tax policy in the Help Hub. Our full policy explains how and when eBay charges applicable taxes.
Is there a way for tax-exempt buyers (e.g., charitable entities, resellers, etc.) to provide an exemption certificate and make purchases without paying tax?
eBay currently doesn’t support a buyer exemption system for Canada-based buyers. First Nations buyers can apply for a rebate to the CRA on exempt purchases. For provincial exemptions, buyers can go to the respective tax authority for a refund.
Will eBay be providing tools to help sellers with their tax obligations?
We’re developing reporting and exploring partnerships with tax service providers to help sellers with their sales tax obligations. For more information on these new tax requirements, we recommend consulting with your tax advisor.
How does eBay determine how much sales tax should be applied to each state/sale?
Each jurisdiction has different sales tax rates. eBay determines the tax rate based on the buyer’s delivery address and the items purchased.
Are shipping and handling taxed as well?
Each jurisdiction’s legislation dictates whether shipping and handling are taxable or not. In jurisdictions where eBay is collecting tax, we will collect tax on shipping and handling where applicable.
Where can I find more information about eBay collecting sales tax and in which jurisdictions eBay collects?
Please visit our Help page and look for updates on Seller News.
If a seller discounts the invoice, will the sales tax amount adjust as well? If not, is there anything in the works that will solve this?
If a seller provides the buyer with a discount, the tax will adjust accordingly. The tax will be calculated on the discounted price provided by the seller.
Does eBay charge final value fees on the final amount including sales tax?
Final value fees are calculated on the total amount of the sale. Please refer to our fees pages for more information.
Does eBay collect sales tax from the seller or the buyer?
For sales in Canada, sales taxes are collected from the buyer.