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 Replies: 57 / Views: 7,033 |
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Pillar of the Community
Canada
2845 Posts |
Kuh_85 thank you for starting this thread.
As a non-seller, I've found it very informative and learned a few new things:-)
Edited by wildflowerAB
09/03/2015 5:47 pm
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Valued Member
Canada
109 Posts |
Thanks but both threads posted give 2 different amounts; one for $20k another for $30k. Hence the original question which one is it? JW
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Pillar of the Community
Canada
2019 Posts |
If you take the time to read in that other thread. Basically if you had over $20k sales within a taxation year you will be on their list for an audit, how far down the list is anyones guess. The $30k is for Gst/Hst not gross income. http://community.ebay.ca/t5/Seller-...3?rmvSB=trueQuote:Reporting to CRA ... Canada Revenue Agency ......$20,000 in ebay sales... reported by ebay compared to the US.. IRA... reporting by Paypal.... $20,000 and that includes the cost of shipping. That $30,000 in total sales worldwide with respect to GST/HST registration... includes the cost of shipping. The buyer pays the seller and then the seller decides who will delivery the purchase to the buyer. Quote:
Here is something no-one in Canada comprehends. EVERYONE is audited every year through a CRA computer program. I worked for them, many years ago, when they were Revenue Canada.
I do not remember specifically, heck, hardly even generally, but eBay/Paypal was supposed to be handing over records of anyone that grossed in excess of $20K per year. This is from 4-5 years ago. Quote:"I am asking at what point is ebay required by law to submit your info to CRA" When the first case went to court - fiscal 2004 - the decision eventually was made by the Court on the basis of being a "PowerSeller", the original request by CRA. However, it seems things have changed since then and I understand ebay is now cooperating with CRA instead of fighting them. In addition to the annual report, ebay will respond with the information whenever CRA asks for a specific seller. CRA often gets information from sources outside ebay leading to a request for information. It could be something as simple as a buyer claiming a deduction for an ebay purchase, etc... Edited by Northerncoins
09/03/2015 7:34 pm
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Valued Member
Canada
109 Posts |
Northerncoins <-Thanks for the clarification! Seeing as these posts are a decade old, does anyone know if the policies have remained unchanged since or if anyone has experienced an audit for sales over $20k? PM if need be.
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Pillar of the Community
Canada
2019 Posts |
The posts where made on 11-14-2013 , not quite a decade. I think its safe to say these policies are still in effect today.
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Pillar of the Community
 Canada
5404 Posts |
The threshold for GST / HST is 30 K. That said the provinces that have GST and. PST have a lower threshold in the case of my province it is 10 K. Also the CRA states that an undertaking of any kind is essentially a business and income from that venture MUST be declared irregardless of your sales amounts. My personal feeling is that any seller not reporting their income and or NOT collecting the appropriate sales taxes is committing a criminal act that should not be supported or tolerated. Also any buyers that deal with sellers that don't charge taxes are just enabling that act.
Also there are some states and some provinces that will collect the non remitted taxes from the buyer if they audit the seller and they can't pay what is owed.
Edited by Pacificoin
09/03/2015 9:32 pm
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Pillar of the Community
 Canada
2366 Posts |
For any who are unclear on this, you don't have to declare the total revenue of your ebay sales on your personal tax form. You just declare any Profit you earned as income. So if you sell a coin you purchased 5 years ago for $100 and you only get $90 for it there is no profit and no income to declare. If you sold 2 of those coins for $90 and a 3rd for $130 then your total profit would be -10 * 2 + 30 = 10 which you would declare. Sorry, you're not allowed to use a negative total to decrease your income. Unless you're a registered business of course. Income tax is done separately from GST/HST/PST so is declared no matter how small the profit is as long is it's greater than zero and regardless of the amount of revenue that profit was earned on. GST/HST you only need to worry about if your revenue is $30k or more regardless of whether you're making a profit or not. It is generally financially advantageous to register for GST/HST because you get an immediate credit of $300/year for the trouble of having to deal with it. If you aren't profitable then you also get reimbursed for the difference between the GST/HST you paid on the items you sell and the GST/HST you collect. If you're selling for less than you purchased then the GST/HST will be less as well so you will get a refund. Not much but better than nothing. If you are profitable then look at using the Quick Method of Accounting. It is simpler than having to keep track of each transaction. You keep a fixed portion of the GST/HST you collect and remit the remainder to the government. Depending on your cost of what you're selling etc you may get to keep more money one way than the other so do the math. For example, we use Quick Method for our consulting business since we have very low costs (internet connection, phone bills etc) but high revenues. On our ebay business we use the regular method because our costs are higher than our revenues. You can only use the Quick Method if your revenues are below $400k annually. There's some other fine print relevant to exemptions for charities, universities etc but most of us don't need to worry about that. Hope some of you have found this thread useful in understanding how things work!  |
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Pillar of the Community
Canada
5404 Posts |
KUH You are absolutely wrong! You must declare your total revenue from all ebay and other coin sales. It is called the cost of goods section on your personal income tax form that pertain to business income ( unless you are a limited company, where taxes are filed as if a different person). Of course you declare your TOTAL sales ,purchases and expenses as well as your starting and ending inventory figures as well. The result of this is your net profit or loss as it may be. If you have a loss on business income indeed it can absolutely be used to reduce other taxable sources of income. Also the CRA will look very closely at a business that shows no profit after an acceptable period of time. My advice for what it is worth run it clean, have a good accountant and keep track of every single invoice , purchase order , every single receipt no matter how small, and a mileage book for auto expenses. Also if you are importing coins make sure you have an import number for commercial goods and declare everything on a B3 form when bringing it in to Canada. If exporting on a regular basis , make sure you are sure of the US customs regulations and the proper use of the various export forms required by the US Border Services. |
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Pillar of the Community
Canada
2366 Posts |
@Pacificoin - Wow. Just wow. There simply is no " cost of goods section on your personal income tax form ". It doesn't exist. All they want to know is your INCOME (Profit). See screenshot. Maybe you're confused with the HST form which I dealt with in the second paragraph? What's your beef with me anyway? I could understand it if you had some valid points but I've debunked everything you've wildly accused me of so far haven't I?  p.s. I can see WHY you need an accountant!  |
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Pillar of the Community
Canada
5404 Posts |
Wow is right!! You better look at what is necessary to complete Business income (162) for a business. I have no beef with you at all. I do not need to see your screen shot. I am not confused at all KUH as to what is required for GST/HST and what is required for income tax. Have you even prepared expense reports or done a P and L statement in your life? I do not need to be told by an obvious rank amateur how to run a successful coin business , because by your postings of your own figures you have no clue how it is properly done and / or how to make a profit. Been doing this for well over 40 years with excellent results. I will leave it with this though, Mark Twain once said words to the effect of ............"never argue with a fool as they will bring you down to their level and beat you with their expertise". Have a great day and continued success. I certainly wish you no ill will at all. I do however have a very clear question for you as you say you are registered as a business for GST/HST/ If I buy lets say a 1937 Nickel or the like off of you , Do I get a completed invoice clearly showing the 1) Purchase price 2) shipping cost 3) GST charged 4)your business number ? PS your comment on the accountant is a good one .........................look into it. Nothing personal and I am certain you might figure all this out one day.  Edited by Pacificoin
09/05/2015 8:16 pm
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Pillar of the Community
Canada
2366 Posts |
Yet another mistake in your previous post is "Also the CRA will look very closely at a business that shows no profit after an acceptable period of time". If you are a registered business and claiming all the associated business expenses and carrying over business losses etc etc then you are correct. To be a registered business you have to have a reasonable expectation of profit. That is why we haven't bothered to register our ebay store as a business and don't bother claiming all those additional deductions. You don't need to be a registered business to get an HST number and HST has no expectation of profitability. The two (income and HST) are pretty much separate things. IMHO as the OP, this thread is for collectors who are selling some coins on ebay to be aware of how some sellers overcharge HST on some listings for whatever reason. Seems to have gotten high jacked somewhere along the way.... Anyway, I'm done with this conversation unless somebody else has something to ask? If so, PM me and let me know. |
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Pillar of the Community
Canada
2366 Posts |
LOL Gotta love selectively reading! |
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Pillar of the Community
Canada
2366 Posts |
Hmmmm, just a thought. Are you in some way connected with capitalcoinsnfld? Is that what this is all about?
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Pillar of the Community
Canada
5404 Posts |
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Rest in Peace
Canada
1360 Posts |
Back to the original post. What did the Mint charge their customers (or the post office) for these sets. Seems to me, if they sold this as a set (Wood box, with coin and stamps)... it negates the 'bullion' aspect of this entirely and becomes a commodity - and as such, your whole purchase should be subject to HST. If you were purchasing the coin alone - then no HST.... if with the coin and stamp only - no box - then the stamp, as a separate item, would be taxable, but not the 99.99% silver coin. Just mho.... However, after saying this, I stopped by Canadian Coin and Currency web-site, and filled my basket with the Maj Moose Coin and stamp set... put in my Ontario postal code... and HST was NOT applicable on this purcahse. Not saying CC&C is right or wrong... but there it is.  Edited by Dcadon
09/06/2015 6:37 pm
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Posted 09/03/2015 6:40 pm
