Understand tax obligations that may affect you in Canada.
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
Collecting sales taxes
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. 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 tax 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.
Digital Platform Sales Tax Collection FAQs
In which provinces does eBay have sales tax collection obligations?
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:
- 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
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 state and jurisdiction have different sales tax rates. eBay determines the tax rate based on the delivery address and the items purchased.
Are shipping and handling taxed as well?
Each state’s legislation dictates whether shipping and handling are taxable or not. In those states 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 in which jurisdictions eBay collects?
Please visit our Help page and look for updates on Seller News.
Is there a way to enter different percentages for different jurisdictions within a state?
We’re in the process of updating the Tax Table to provide this functionality for our sellers.
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.
Refunds to a Buyer
If the buyer requires a refund—cancellation, full refund, less than 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.
How can I check how much Internet Sales Tax was collected by eBay?
Our Orders Report itemizes how much tax we collected and remitted for transactions in marketplace responsibility states. You can download your orders in a CSV (comma-separated) file from the “Manage all orders” page in Seller Hub.
Value Added Tax in the EU or UK
If you sell to buyers in the EU or UK, you may be required to charge and remit Value Added Tax. Value Added Tax is similar to a sales tax. For example, any eBay seller making sales to UK buyers and fulfilling those orders from UK-based inventory may be obligated to register for, charge and remit Value Added Tax in the UK. Speak with a tax advisor to better understand how Value Added Tax applies to your eBay business in the EU, UK and other countries outside the US.
Note that eBay will collect VAT on your sales in the following cases:
- If your shipments have a value up to EUR150 and are sent from outside of the EU to consumer buyers within the EU
- If your shipments have a value up to GBP135 and are sent from outside of the UK to consumer buyers within the UK
- If your shipments are within the UK or EU, and you are established in a different jurisdiction
Do I need to register for Value Added Tax in the EU or UK?
eBay wants sellers to be successful and legally protected, wherever you do business.
Registering for Value Added Tax in the EU or UK may help you do both those things.
Whether you need to register for Value Added Tax in an EU member state, or in the UK depends on the way you conduct your business.
The key factors that determine if you have an obligation to register for Value Added Tax are
- Your business’s country of establishment.
- The location of your inventory.
It’s each seller’s responsibility to ensure they are Value Added Tax-compliant.
Complete the following steps to ensure you are Value Added Tax-compliant and to avoid potential selling restrictions.
- Register with the local tax authority in each country where you’ve determined you have a Value Added Tax obligation. For example in the UK, register with HM Revenue & Customs (HMRC), the UK’s tax authority.
- Provide eBay with your Value Added Tax ID number, and we’ll automatically add it to all your eligible new listings.
Value-Added Tax resources
HMRC Value-Added Tax guidance for overseas, online retailers
HMRC Value-Added Tax registration
HMRC Guidance on VAT and overseas goods sold to buyers in the UK via online marketplaces: https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces
EU eCommerce VAT Package: https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en
I live in Europe, but I sell on ebay.ca (Canada) and most of my customers are out of European Union. Must I pay VAT to ebay.ca as an additional tax?
Since you are doing business in Europe, you are required to comply with EU laws and regulations, as well as those in your own country. The eBay sites in Europe (such as ebay.sp, ebay.co.uk, ebay.de, etc.) are set up with the correct processes to help sellers meet these requirements. Learn more.
Do I need to inform a buyer overseas about import charges?
Yes. 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.
Do I need to do anything in cases where eBay collects UK or EU VAT on my sales?
Where eBay collects VAT on a transaction, we will provide you with a document to confirm that eBay has taken responsibility for VAT. You should consult with your tax advisor how this document is required for your tax reporting.
* Except in Vermont and Massachusetts where the threshold is lower irrespective of the number of transactions.