Final Value Fee overcharging? 11.3% instead of 10%.

[2756anderson]

Fees for final value are supposed to be 10%.  But mine come out to 11.3%.  Why would that be?

Example:  Item sold for $99.00 U.S. (after conversion to Can by Ebay, $128.30) and the fee was $14.51 (Can).  That's 11.3%.  Where is the extra 1.3% coming from?

There are no penalties being charged to my Top Seller account.

[slippinjimmy]

Fees for Canadian sellers include GST/HST, if you are in Ontario with a 13% HST rate that's where the extra 1.3% comes from.

If you are registered for HST/GST then you can claim that amount as an Input Tax Credit and get it all back.

The Tax will show as a separate line item on your monthly invoice/statement, for some reason eBay adds it to the each individual fee and then at the end of the month backs that out and includes it in the statement on it's own line.

eBay started collecting GST/HST on July 1st 2017 as required by the Feds when they changed the billing location from Luxembourg to Canada.

[nawlinsron2]

Does that include the 10% fee on shipping charge?

[slippinjimmy]

In Canada and other countries with a Value Added Tax it applies to ALL fees, listing, FVF, Store subscriptions etc.

[femmefan1946]

GST -- Goods AND SERVICES Tax. Five percent on all transactions.

PST-- Provincial Sales Tax mostly of goods with exceptions.

HST- Harmonized Sales Tax (both GST and PST charged together).

[jonathankirkland]

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@femmefan1946 wrote:

GST -- Goods AND SERVICES Tax. Five percent on all transactions.

PST-- Provincial Sales Tax mostly of goods with exceptions.

HST- Harmonized Sales Tax (both GST and PST charged together).

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And I thought we had it bad here in the US with the frivilous taxes, good grief.

[insanestickerz]

Canadians forget to tell you about this sort of nonsense when bragging about their "free" healthcare.

[alawrenc1952]

Canadian sellers should not have to pay the GST/HST on goods going out of the country, according to the GST employee at the Canada Revenue website!  Just the fact of not making $30,000 a year, means businesses do not have to collect it either.  The fact that ebay is charging it in US funds to boot, is not fair and likely means they are making money on the exchange currency, since ebay claims to be sending this tax money to the Canadian government (who will squander it as usual!).  Go to the CRA and check for yourself and when you find out that I am telling the truth, everyone should bug ebay about the unlawful collection of this tax!!!

[sin-n-dex]

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@2756anderson wrote:

Fees for final value are supposed to be 10%.  But mine come out to 11.3%.  Why would that be?

Example:  Item sold for $99.00 U.S. (after conversion to Can by Ebay, $128.30) and the fee was $14.51 (Can).  That's 11.3%.  Where is the extra 1.3% coming from?

There are no penalties being charged to my Top Seller account.

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You're in Canada, you're subject to 13% HST (pending on where you live, but I think eBay Canada is in Ontario, which is 13% tax).

If you don't like it, go to CRA site and register for HST. You will need to remit all HST collected on Canadian sales (and you will need to collect it, or calculate it as part of the total paid), and then all this HST you're paying for business stuff in Canada including FVF will be returned to you when you file your HST return.

I registered for HST (I actually had to, there's a threshold of what you can earn before you need to register), and since all my business is International (with minimal exception), I am collecting $20 in HST to remit, submitting $200 in input tax credits every month, and they put $180 in my bank account after I file.

You will need a receipt that specifies you have paid HST/GST. If it's not on the receipt, it didn't happen.

Cheers, C.

[sin-n-dex]

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@nawlinsron2 wrote:
Does that include the 10% fee on shipping charge?

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Yes, all fees paid to eBay (through eBay Canada) are subject to 13% HST.

Cheers, C.

[sin-n-dex]

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@insanestickerz wrote:

Canadians forget to tell you about this sort of nonsense when bragging about their "free" healthcare.

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I'm in a 29% tax bracket to pay for this "free healthcare" everyone is talking about.

But I am having a great deal of difficulty getting a mortgage because most houses here are half a million dollars to purchase.

Cheers, C.

[sin-n-dex]

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@alawrenc1952 wrote:

Canadian sellers should not have to pay the GST/HST on goods going out of the country, according to the GST employee at the Canada Revenue website!  Just the fact of not making $30,000 a year, means businesses do not have to collect it either.  The fact that ebay is charging it in US funds to boot, is not fair and likely means they are making money on the exchange currency, since ebay claims to be sending this tax money to the Canadian government (who will squander it as usual!).  Go to the CRA and check for yourself and when you find out that I am telling the truth, everyone should bug ebay about the unlawful collection of this tax!!!

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You are not correct on this.

eBay Canada can charge HST because THEY are a Canadian business and earn over 30K a year.

If your business earns less than 30K a year, you can voluntarily register, collect the taxes on your Canadian sales, submit a claim for all HST paid relating to your business, and get money back (that will happen if you're registered but sell mostly internationally). If you're business earns over 30K, you have no choice.

Private citizens pay HST on all their purchases, so why would you think it would be different for a casual eBay seller to pay HST on their fees? Do you not pay HST when you buy things in Canada?

Cheers, C.

[reallynicestamps]

By the way, when you remit sales taxes, you actually get a small refund on the amount your remit as a sort of fee for doing the arithmetic and filling in the form.

I remember those late night dashes to the tax office in Orleans when we still had our store in Ottawa. So romantic just DH and I and the pouring rain. It was always raining. Sympathetic fallacy.

@insanestickerz

BTW- while most provinces put our "Free" healthcare fees into payroll taxes, here in BC we pay directly.

For DH and I that's $75Cdn ($60US) a month for a couple. 

And when I called the doctor's office for an appointment on Wednesday, I was given a choice of later that afternoon or today at 11:30am.

Seems reasonable to me.

[sin-n-dex]

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@reallynicestamps wrote:

BTW- while most provinces put our "Free" healthcare fees into payroll taxes, here in BC we pay directly.

For DH and I that's $75Cdn ($60US) a month for a couple. 

And when I called the doctor's office for an appointment on Wednesday, I was given a choice of later that afternoon or today at 11:30am.

Seems reasonable to me.

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OHIP (Ontario Health Insurance Plan) adds an amount to your Ontario tax when you file at year end. For someone earning $20K a year, it's a very small amount, but once you reach the threshold, you could be paying $300 or $450. I find the OHIP premium messes with my ability to get a refund (in other words it looks really good until I get to that line item).

As for appointments, if you have a family doctor, you can get in same day. But in Ontario if you have a family doctor you are not allowed to see other GPs, or go to clinics, not even if your doctor's office is closed and he can't get you in. You need to go to an emergency room at the hospital. That could be 8 hours in chairs overnight waiting to be seen. (I went to the hospital one morning and there was a guy who needed stitches for a work injury and he had been waiting 10 hours. It's not like your family doctor can do that sort of thing...)

The last time I went to the hospital, after triage I was admitted immediately. They didn't even give me a chance to register. The end result was 5 days on IV antibiotics. So if you're really sick you can be taken care of quickly.

Cheers, C.