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Taxes and import charges

When you sell on eBay, you're responsible for complying with all applicable tax laws. If you're selling to buyers outside of Canada, you should inform them about the potential import charges they'll need to pay when they receive their item.

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 sales tax on eBay sales
  • Paying income tax on eBay sales
  • Informing overseas buyers about import charges

Charging sales tax on eBay sales

If you're required to charge sales tax, you can set up a tax table and apply it to your listings. We'll then add the tax to the buyer's total at checkout. You're responsible for paying the sales tax to the appropriate authority.

Contact a tax professional to determine whether you need to charge sales tax on your eBay sales, or if you have questions about any other taxes. We can't provide tax advice or guarantee that our sales tax features meet all tax requirements.

Setting up a tax table

You can specify a sales tax rate for each province in which you're required to charge sales tax. You can also charge tax on shipping and handling, if it's required by law.

Buyers see your tax rates on the listing page. Once they confirm their shipping address at checkout, we automatically calculate the sales tax amount and add it to their order total.

Here's how to set up your tax table:

  1. Go to Site Preferences in the Account section of My eBay.
  2. In the Payments from buyers section, select Show.
  3. Select Edit in the Use sales tax table section.
  4. Fill in the sales tax rate for any province where you want to charge sales tax. If you're also required to tax shipping and handling in that province, select the Also charge sales tax on S&H check box.
  5. Select Save.

Important things to keep in mind when setting up a tax table:

  • When you list your item you need to indicate that you charge sales tax in the listing form and associate your tax table with the listing.
  • Changes that you make to your tax table won't be reflected in your live listings. You will need to revise any current active listings in order for your tax table changes to apply to those listings. Listing created after you have saved your tax table changes will reflect your tax table updates.

Once you've created your tax table, you need to specify in your listing that you are charging sales tax. Here's how:

  1. On the listing form, check the box beside Charge sales tax according to the sales tax table.
  2. You can open and make changes to your tax table by selecting View sales tax table.
  3. Complete your listing and select Preview listing or Save and continue later.

Items delivered to a United States address

Tax laws vary between states, and sales tax - opens in new window or tab may be required to be collected by the seller, collected by eBay, or paid directly by the buyer. If your delivery address is in one of the US states where either the seller or eBay is required to charge sales tax, the tax will be included in the order total at checkout.

Informing overseas buyers about import charges

When you sell to buyers outside of Canada, import fees (including taxes and customs charges) may apply for the country you're sending the item to.

The fees are usually based on the item's price, shipping weight, dimensions, and country of origin, plus any taxes, duties, and fees from the country you're sending the item to.

Buyers are responsible for paying import fees, usually as part of clearing their parcel through customs or when they receive their item. If you offer international shipping, you can't include these costs in the item's purchase and shipping price. Make sure to let international buyers know this in your listings.

Some countries and jurisdictions require eBay to collect import tax from the buyer when they pay for their order. You'll find more details in our Tax policy.

When you list your item you need to indicate that you charge sales tax in the listing form. It's up to you to pay applicable taxes on eBay sales.

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