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 Replies: 57 / Views: 7,023 |
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Pillar of the Community
Canada
2366 Posts |
Poll Question
*** Moved by Staff to a more appropriate forum. ***Just had this happen to us (again) on ebay. Usually it happens with a single coin or two mixed in with a larger order or sometimes the seller just has 'Charge applicable sales tax to buyers' enabled on all items so is kind of understandable but in this case it's a single item. Our first purchase from this seller. And seller sent an updated invoice with HST added when the coin is .9999 silver and HST exempt. The initial default invoice had no HST. Haven't yet received a reply to the following message so I won't provide details on the item/seller yet. "It's always annoying when a seller changes the default HST free invoice to add HST for a .9999 silver HST exempt coin. Please put it back the way it was." However seller's profile states, "I Have been involved in coin collecting and selling for over 30 years. Specialize in Newfoundland , Canadian and U S coins." so I'm not inclined to give the benefit of the doubt this time around. What do you think?
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Pillar of the Community
Canada
1192 Posts |
If you're a registered business, you can claim the HST paid as an Input Tax Credit (ITC), which basically means when you collector HST on other sales, it balances out. And makes cases like this work themselves out with no issue.
I recently bought a .999 gold bullion coin from the USA and was incorrectly charged GST on it. Before I became a business it would have been a big headache to fix it and get a refund from UPS. As a business it ends up being a wash, as I deduct that amount as an ITC using HST collected on my sales.
With the amount you (or your "wife") have sold and currently have for sale, I would strongly recommend looking into becoming a business. Sales above $30,000 in a calendar year bumps a person from hobby to business. CRA probably won't come after you, but it would be a huge PITA if they decide to.
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Pillar of the Community
Canada
3049 Posts |
I love how after you vote you can see the results!
I'm sure it's just a bit of an error... though I'm interested in who the seller is as I'd like to gawk at some Newfie coins for a bit.
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Pillar of the Community
 Canada
2366 Posts |
@Pokermandude. We are a business and do pay HST. We just don't add it to the items we're selling as an additional charge to make things easier/simpler for buyers. I've got a spreadsheet done up for her that calculates it all out so she just has to plug the numbers into the HST return at the end of the year. :-)
EDIT
p.s. IMHO doing it that way also levels the playing field somewhat between US and CDN buyers; debatably at our expense but we're not really in this for the profit.
Edited by kuh_85
09/01/2015 8:18 pm
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Pillar of the Community
 Canada
5393 Posts |
721 items listed close to five thousand positive feedbacks and you are not in this to make money. Come on Kuh who are you kidding.
Not being transparent and adding on the GST HST is not really a smart move as far as we are concerned. We charge it as we are a GST and BC PST registered company. Every Canadian buyer we sell to receives a proper invoice with our GST number clearly shown on the invoice.
In fact for any BC sellers if you sell 10 K you have to be registered anyways. That is Provincial law and your BC business number is the same as your GST registration number. It really stinks having to charge taxes to Canadians on coins considering that 37 out of 50 states in the U.S. do not. That said certainly do not need the CRA on the phone or at the front door.
Edited by Pacificoin
09/01/2015 10:26 pm
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Pillar of the Community
Canada
2366 Posts |
@pacificcoin - CRA says you are 'allowed' to charge HST, not that you have to. BC may have different rules for PST of course. Last year we had a gross loss of $1,660.09 on total sales of $99,738.35 (not including shipping). 2013 was a gross loss of $193.92 on sales of $32,340.70. 2013 was my wife's first year running the store. For us it's about building the best collection we can. That means we're frequently selling coins at a loss after we've upgraded them. As you yourself have previously said, (words to the effect of) you can't be a collector and a profitable seller at the same time! ;-) The store is Business # 826753972 if you're interested. Business name is my wife's full name which I'd rather not post here but PM me if you want it to confirm. Not sure what you mean about not being transparent though?
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Pillar of the Community
Canada
2366 Posts |
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Pillar of the Community
United States
536 Posts |
I'm sure the seller loved being told his actions were "annoying".
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Pillar of the Community
Canada
4227 Posts |
l300e is one of my definite favourite sellers on ebay.  |
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Pillar of the Community
710 Posts |
Quote:
Last year we had a gross loss of $1,660.09 on total sales of $99,738.35 (not including shipping). 2013 was a gross loss of $193.92 on sales of $32,340.70. Very interesting. How much of this goes to fees, shipping, and so on, versus the actual price of the coin? |
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Pillar of the Community
Canada
2366 Posts |
Here is the reply Dear l300e, The items being sold contains stamps, not hst exempt.I operate a business and follow revenue canada guidelines.The listing states Canadian buyers please wait for an invoice as we have to collect and submit hst as per regulations.My business number is 85417 3945 RT0001. ebay has my registered business information as well.Check it out.I get annoyed when people read the listing and dont want to pay taxes and revenue canada audits me. - capitalcoinsnfld |
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Pillar of the Community
Canada
2366 Posts |
@Alex A - Gross loss is after fees and shipping. For 2014 the #s were: Cost of coins $90,230.36 Total sales $99,738.35 Shipping charged $7,303.51 ebay insertion fees $70.85 ebay Final fees $6392.86 Paypal fees $3,752.29 Shipping $8,255.59 |
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Pillar of the Community
Canada
2366 Posts |
Seller has refused to accept Cancelling the purchase.
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Pillar of the Community
Canada
2366 Posts |
Had to talk to 3 people at ebay before they'd accept a report. FYI, you have to wait until the seller opens an Unpaid Item Case and the case closes. ebay can not (so they say) cancel a purchase and can not pro-actively prevent a UIC. Just gave me a reference # to call them up afterwards and get it removed. |
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Pillar of the Community
Canada
2366 Posts |
Seller is either a) unaware that buyers can not request the Cancellation of a purchase "through ebay" more than 1 hour after purchase or b) is playing stupid and deliberately waited until the one hour limit expired to send their invoice. In any case the seller convinced us to escalate this to ebay. Message thread is as follows. Dear capitalcoinsnfld, Will do. And while I'm on the phone I will explain WHY I'm cancelling. L. - l300e From: capitalcoinsnfld To: l300e Subject: Re: Request to change an order: l300e sent a message about CANADA 2004 FIVE DOLLAR MAJESTIC MOOSE AND STAMP SET # 221860557764Sent Date: 02-Sep-15 13:40:30 EDT Dear l300e, You have to request through ebay if you want to cancel an agreement to purchase. - capitalcoinsnfld From: l300e To: capitalcoinsnfld Subject: Request to change an order: l300e sent a message about CANADA 2004 FIVE DOLLAR MAJESTIC MOOSE AND STAMP SET # 221860557764Sent Date: 02-Sep-15 13:29:28 EDT Dear capitalcoinsnfld, Cancel this purchase. L. - l300e |
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Pillar of the Community
Canada
2366 Posts |
Dear capitalcoinsnfld, LOL! :-) L. - l300e From: capitalcoinsnfld To: l300e Subject: Re: Request to change an order: l300e sent a message about CANADA 2004 FIVE DOLLAR MAJESTIC MOOSE AND STAMP SET # 221860557764Sent Date: 02-Sep-15 14:58:11 EDT Dear l300e, Your neg feedback was removed by ebay and I opened a case against you as a non paying buyer.Your attempt at malicious feedback was not tolerated after my refusal to operate outside tax regulations.I will always protect ebay community by doing things the right and legal way. - capitalcoinsnfld Edited by kuh_85
09/02/2015 3:02 pm
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Replies: 57 / Views: 7,023 |
Posted 09/01/2015 8:10 pm
