GST Tax

[james8547]

I bought something on eBay. It's going to ship from Canada to NJ. My question is:

Why am I getting charged a 7% GST Tax when I live in New Jersey, USA? How can Canada charge me tax? I am not even Canadian. Does the seller even have the right to charge me the GST tax?

It's my fault. I didn't read the fine print. I was too excited. I actually read it but I didn't know what was GST. I am a bit upset because I thought I was going to save some money...actually, I'm still saving about $10. But for $10 bucks, I'd rather have bought directly from the mfg.

[Trent Steel]

Could you post a link to the ebay auction? You shoulden't be charged for GST, you are not purchasing the item in Canada. The individual you are buying from is charging you the GST, and he in turn is supposed to turn that over to the government (which he may or may not be doing). I know for a fact that if you are making purchases here in Canada as a non-Canadian you will be charged with GST, but as long as you keep all your reciepts you can apply to the Canadian government to get you GST money back. But in your situation you should not be charged the GST in the first place, contact the seller and state that you shouldn't have to pay the GST and likewise he does not need to pass any GST to the Canadian government for that sale.

[HAL9000]

Even if you are legitimately being charged the GST (Goods and Services Tax), you can fill out a form to reclaim it.

[james8547]

The seller told me that he was charged with GST. This is why he is charging me also. He told me that I can apply for reimbursement. He is mistaken because I can only apply for a tax refund if I physically went to Canada and bought the item. I am not even supposed to be charged with GST in the 1st place.

According to the Canada Revenue Agency, “Goods (other than excisable goods such as beer and tobacco) ordinarily taxable at 7% GST or 15% HST may be taxed at 0% if they are exported from Canada. This means that you do not charge GST/HST on taxable sales if you deliver the goods or make them available to a purchaser outside Canada.” I got the information directly from their website (http://www.cra-arc.gc.ca/tax/business/topics/gsthst/taxable/import/ex_good-e.html).

[Trent Steel]

Good find james8547, knew the information was somewhere on that site but couldn't find it myself. You are not being legitamitely charged that tax, its going straight to the sellers pocket. You can either refuse to pay the added expense, and deal with the possible consequences, or at least inform Canada Revenue Agency that he is collecting these taxes. Could you post a link to the ebay auction so the wording of the auction can be revued?

[james8547]

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&rd=1&item=5716478194&ssPageName=STRK:MEWA:IT

I think I'll just try to collect a refund from Canada. I don't want to back out. I want to preserve my 100% feedback. If the refund fails, then I report him. It's my fault for jumping the gun too quickly. I really shouldn't go shopping at 2a.m. :D

[glc]

Seller's payment instructions & return policy:
Please contact within 3 days of auction ending or the item will be relisted and a NPB will be filed. Buyer is to pay within 5 days. Buyer is to pay via paypal Please apply GST to final total worldwide. (7% Tax) If located in British Columbia please add PST

Doesn't sound legal to me, but it is specified upfront.

[Trent Steel]

Don't count on getting that tax back. He does not specify that the GST is a Canadian Tax, just that you have to pay 7% tax. I would pay, then give a neutral feedback stating that he is improperly collecting taxes.

[HAL9000]

I would think to get the tax back, you would need a receipt with their GST number listed on it.

[compusport]

If he's charging GST, he has to have a GST registration number, which I really doubt he has. I say send him an email telling him to adjust your cost or offer to turn it over to Revenue Canada.