We're changing the contracting party for
Canadian residents and businesses.
Today, eBay announced changes that will impact Canadian residents and businesses who use eBay.
To better reflect how we manage and operate our platform in Canada, on July 1st, 2017 we will be changing the contracting party for Canadian residents and businesses from eBay International AG to eBay Canada Limited, a Canadian corporation.
As a result, eBay users residing in Canada will begin contracting with eBay Canada Limited. This change will impact these users' User Agreement, User Privacy Notice, Billing Agreement, and other agreements with eBay.
The new contracting entity, eBay Canada Limited, is subject to Canadian tax law. As a result, sales tax (GST/HST/QST) will be charged on eBay fees starting July 1st, 2017. The applicable sales tax rate will vary by province, which we will determined based on your registered eBay address. You should confirm that your registered address is correct. The current applicable tax rates are:
|British Columbia (BC):||5.00%|
|New Brunswick (NB):||15.00%|
|Newfoundland and Labrador (NL):||15.00%|
|Northwest Territories (NT):||5.00%|
|Nova Scotia (NS):||15.00%|
|Prince Edward Island (PE):||15.00%|
While the addition of GST/HST/QST on fees is new, eBay's prices will not change as a result of this legal entity change. Furthermore, you should see no interruption in your service as a result of this change, and you will not need to make any updates to your listings.
If you are a business user, we recommend that you consult with your tax advisor to understand your eligibility and the process for claiming an input tax credit on tax paid for services provided to your business.
eBay Canada Limited FAQs
What is changing?
As of July 1st, 2017 we are changing the eBay contracting entity for Canadian residents and businesses. This means that as of that date, eBay users residing in Canada will cease to contract with eBay International AG, and will begin contracting with eBay Canada Limited, 500 King Street West, Suite 200, Toronto, ON M5V 1L9, Canada. This change will apply to your user Agreement, User Privacy Notice, Billing Agreements, and other agreements with eBay.
Why are you making this change now?
In 2016, we began the process of realigning our legal structure, subsequent to the distribution of PayPal Holdings, Inc. to better reflect how we manage and operate our platforms. In 2017, we are changing the contracting entity for eBay users located in Canada.
When does this change take effect?
The effective date for these changes will be July 1st, 2017 for Canadian residents and businesses.
You are changing the eBay entity and bank account that receives my fees; do I need to do anything to ensure my fee payments are received and processed on time?
No, you do not need to take any action. You can continue to use any payment method you have on file with eBay. Your billing cycle will not change.
Why am I now being charged tax when I was not previously?
Effective July 1st, 2017, your services will be provided by eBay Canada Limited, which is required to collect and remit applicable taxes on services provided in accordance with Canadian tax laws. On that date, eBay will start to collect and remit GST/HST/QST on fees provided by eBay to Canadian residents and businesses.
How will GST/HST/QST be collected?
Sellers will see the applicable taxes detailed on their eBay invoices, which will be issued by eBay Canada Limited after July 1st, 2017. Sellers will pay the applicable taxes, along with their fees, using the normal fee payment procedures. Your billing cycle will not change.
The applicable tax rate will vary by province and be determined based on my registered eBay address. Where can I find my registered address?
You can confirm and edit your registration address from the Addresses section of My eBay:
- Go to My eBay > Account.
- Select Addresses.
- Next to Registration Address, select Change to view or change your registered address.
This will cost me more!
It's important to understand that eBay's fees have not changed. The new contracting entity, eBay Canada Limited, is required by law to collect and remit to the government any applicable taxes on the services we provide.
I run a business. What should I do?
If you are a business user, we recommend that you consult with your tax advisor to understand your eligibility and the process for claiming an input tax credit on taxes paid for the services provided to your business.