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 Replies: 57 / Views: 7,028 |
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Bedrock of the Community
Canada
21630 Posts |
kuh_85
For what it's worth, I have over the years obtained the
complete series from different sellers and have never been charged tax on any of them.
In fact Universal Coins in your hometown has a set for sale and states it is tax exempt.
His statement "because they contain stamps" makes no difference. If he wants, tell him to
charge tax on one $5.00 stamp because the other one is cancelled.
You are right in this case.
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Pillar of the Community
 Canada
2366 Posts |
@JimmyD - Thanks! Yes we did send the following msg but didn't get a reply.
Well, I would have to say you are the only HST registered coin seller I've ever met (including myself) who thinks this way. L.
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Pillar of the Community
 Canada
9865 Posts |
Coin and stamp set is subject to GST.
"Dipping" is not considered cleaning...
-from PCGS website
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Pillar of the Community
Canada
2366 Posts |
@DBM - Not according to any of these sellers. Dear capitalcoinsnfld, See item # 261651563707 - Gateway coins - Tax exempt Item # 131579107574 - monnaiesherbrookecoin - No Tax Item # 131367282509 - lcc.on.ca.coins - Canadian customers pay no tax FYI. All of these are legitimate, HST registered businesses who disagree with you. L. - l300e |
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Pillar of the Community
 Canada
5400 Posts |
Dbm is correct the set is subject to both PST and GST. In fact in both BC and Manitoba even a .999 or finer coin sold at a BIG premium over its bullion value ,even though GST exempt is TAXABLE provincially . The reasoning is that it is a collector piece and not a true bullion coin.
Besides if the seller charges you GST HST and should not have, you can still use the amount charged as an ITC as long as the seller provides an invoice. Not really a monetary issue here.
Bigger point is that collector coins should all be non taxable anyways. As I stated earlier 37 out of fifty states exempt them. Considered an alternative investment.
Edited by Pacificoin
09/02/2015 5:46 pm
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Pillar of the Community
Canada
2366 Posts |
Precious metals
Definition of precious metal
ss 123(1)
27. A "precious metal" is a bar, ingot, coin or wafer of gold, platinum or silver that is refined to a purity level of at least
a) 99.5% in the case of gold and platinum, and
b) 99.9% in the case of silver.
Policy statement
P-192, Supplies of Precious Metals
28. A precious metal in the form of a bar, ingot or wafer at the required purity levels must generally be recognized and accepted for trading on Canadian financial markets. Ordinarily, these will bear markings indicating their purity level. They will also have an identification mark of the issuing financial institution or refinery. With respect to coins, only those metals at the required purity levels that have been issued by a government authority and that may be used as currency will qualify.
29. Any supply of a precious metal (i.e., gold, platinum or silver) meeting the purity requirements, as set out in the definition of precious metal in subsection 123(1), is a supply of a financial service and generally exempt. Metals of this quality are normally investment-related and are usually bought and sold on international exchanges that establish world-wide precious metal prices.
30. The sale or purchase of a precious metal, in the course of a commercial activity, that does not comply with the defined requirements is not considered a supply of a financial instrument, but rather a supply of property. Generally, the sale of gold, platinum or silver in bar, ingot, coin or wafer form with a purity level of less than 99.5% for gold and platinum, and less than 99.9% for silver is taxable at 7% or 15%. The sale of gold, platinum or silver at the defined purity levels, but not in the form of a bar, ingot, coin or wafer (e.g., in granular form), is taxable at 7% or 15%.
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Pillar of the Community
Canada
1192 Posts |
Really, this is a complete non-issue if you're collecting+remitting HST to the government.
You pay $x more in HST than you should on this set, then you get to offset that by keeping $x in HST collected in other taxable sales. It's a total wash and not even worth fighting over it with the seller...
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Pillar of the Community
Canada
2366 Posts |
@Pokermandud - If you're using the Quick Method of Accounting you get to keep a portion of the HST collected. So certain sellers have a financial incentive to charge HST where they shouldn't and it's not necessarily a "total wash". In our case, you are correct that it would be "total wash" but only if we resold it for that additional amount which means it would come out of the next buyer's pocket.
On a separate note, I'm not claiming this guy is being out and out fraudulent but if he was he could be charging the HST and NOT remitting it in which case he can keep the full amount.
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Pillar of the Community
Canada
2366 Posts |
@DBM & @PacificCoin - Sorry, didn't actually post the link to the listing earlier. Here it is. If you were thinking it was the full set with the wooden box, COA etc as issued by CP you might have a bit more of a leg to stand on. But it isn't. http://www.ebay.ca/itm/221860557764...RK:MEBIDX:IT |
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Pillar of the Community
Canada
2366 Posts |
I wanted to send the following message but my wife wouldn't let me.  Basically what you told me was that if I walked into your store and bought a .9999 silver coin (tax exempt) and a stamp (taxable) you are legally obligated to charge me tax on the .9999 silver coin so what you're doing isn't fraudulent. I'm still laughing! Well, whatever lets you sleep at night I guess.  |
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Pillar of the Community
Canada
5400 Posts |
Sorry Kuh but the item sold like it is in the listing in the box with the pair of stamps is a taxable item . The five dollar moose is a collectors coin and would attract BC sales tax for sure and as a set GST as well. This is one of those areas where it is just best to collect it . I can see where the fellow in NL is coming from on this. You get a credit anyways so it is a wash for you. Question though why would you use the quick method of GST HST accounting ? We would get killed financially doing it that way . We do ours quarterly to the penny and it is really advantageous as we often generate a rebate due to our 75 to 80 per cent export rate. Also as you are growing your ebay business, as the numbers you supplied indicate, I think you need to find a wholesale place to buy stuff from. Your margins look desperately thin. Look around and see if you can find someone or somewhere to acquire wholesale lots to resell. Good luck as you are obviously working hard at it . |
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Pillar of the Community
Canada
2366 Posts |
@Pacificoin - I've provided the documentation that supports my position. Please provide the support for yours. Maybe you've been doing it wrong all these years? As I said, I don't use the Quick Method of Accounting for this business. Just pointing out the financial incentive to charge HST for those profit-driven sellers who do.
And again, I don't do this for profit. ;-)
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Pillar of the Community
Canada
5400 Posts |
Kuh I do not have the time to dig out the provincial tax act right now as we are listing stuff and do this to make a living . All I will say is that the original incident as you described is not hurting you in any way as to losing money on a transaction. As another example, here in BC even though we have a provincial resale exemption number, many stores and sellers refuse to accept it as too much paperwork to deal with. Solution we pay the BC sales tax and claim it as a paid credit on our quarterly BC PST report as prepaid sales tax backed by documentation. Just do the same with the guy in NL no sense escalating something for no loss. You know very well how ebay works as far as sellers defects and your ability to sell with too many. Nobody wants that. Good Luck |
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Pillar of the Community
Canada
2366 Posts |
@Pacificcoin - This conversation isn't about the provincial tax act. It's about GST/HST. Different rules. The transaction I describe hurts my buyers which is something I care about.
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Pillar of the Community
Canada
2366 Posts |
@Pacificoin - Apologies if this sounds a bit undiplomatic; it is not meant that way. I am genuinely curious? Since you ARE profit driven, why wouldn't you look at this question as a chance to improve your competitiveness? Why do you think Gatewest etc that I listed above are wrong? So far your argument sums up as either "The BC provincial tax is that way so the federal GST/HST must be", "because I've always done it that way" or "because I believe it to be true so it must be"; none of which are particularly convincing in the face of tangible evidence such as Gatewest et al and the HST info on CRA's website.  |
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Replies: 57 / Views: 7,028 |
First Page
Posted 09/02/2015 5:05 pm
