HST Tax ( Canada ) Am I responsible to collect the HST in this instance?

by admin on March 8, 2010

I live in Atlantic Canada where the HST applies.

I am getting into selling on eBay and will be selling World Wide and including Canadians.

I understand that under no circumstance do I have to collect HST for Items exported out of the country.

But I am not selling my own items on eBay, I am basically brokering sales for a drop shipping company
and keeping a portion of the sales proceeds.

So I am curious … If I do not stock or ship the items that I list on eBay, and simply hand the sale over to a
drop shipping company which is NOT located in Canada, then am I responsible to collect HST, or is the actual company Stocking, supplying and shipping the product responsible for collecting taxes.

So my question is … can anyone tell me in the above instance whether I would be responsible to collect the HST if I were to list items for sale to Canadians even though I was not the actual supplier?

Can anyone point me to a web page on the CCRA website that deals with Selling on eBay through Foreign Drop Shipping Companies.

I can not find a thing on it, nor can I get a straight answer out of our bookkeeper.

Any help will be appreciated and I will give a best answer.

Wow. What a tangle. You’re a resident of Canada, selling goods online to residents and non-residents, acting as an agent for a foreign company.

You might not find an actual web page giving an exact answer for this. There are two government agencies you should consult on this. The first is the CRA. The second would be the border services agency, who also collect GST/HST on occasion. Pose the question to both of them. If you get a conflicting answer, apply for a CRA ruling.

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{ 1 comment… read it below or add one }

Sparky March 8, 2010 at 10:38 am

Wow. What a tangle. You’re a resident of Canada, selling goods online to residents and non-residents, acting as an agent for a foreign company.

You might not find an actual web page giving an exact answer for this. There are two government agencies you should consult on this. The first is the CRA. The second would be the border services agency, who also collect GST/HST on occasion. Pose the question to both of them. If you get a conflicting answer, apply for a CRA ruling.

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