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Why am I being charged tax on a used item?
What is use tax? Use tax is similar to sales tax and is due on taxable purchases of merchandise that will be used in California. Generally, it is owed when you purchase merchandise without paying California tax to an out-of-state retailer or when a business removes property from its resale inventory for its own use.
What items are HST exempt?
You are not required to pay the Ontario portion (8\%) of the HST on items such as books, children’s clothing and footwear, children’s car seats and car booster seats, diapers, qualifying food and beverages, and newspapers. The Canada Revenue Agency administers the rebate on behalf of the Government of Ontario.
Do you charge HST on used items?
If you sell a used personal use item then the transactions is generally not subject to GST/HST. There are, however, important exceptions to this rule. If the sales of personal use property in a given year exceed $30,000 then you are required to be a GST/HST registrant and you are required to charge and remit GST/HST.
Do you have to pay taxes on selling used items?
The rule of thumb is that if you used the items and then sold them for less than you bought them for, then you owe no taxes on the sale. However, if you sold an antique or collectible that had appreciated since you first acquired it, you likely would be on the hook for taxes on the profit.
Do you charge GST on selling used equipment?
What items are only charged 5\% HST?
HST Point Of Sale Rebates
| Goods and Services | Tax Rate |
|---|---|
| Air traveling originating in Ontario and terminating in the US | 5\% GST |
| Books (including audiobooks) | 5\% GST |
| Newspapers | 5\% GST |
| Child car seats and booster seats | 5\% GST |
Is there HST on used furniture?
But when used furniture is resold, as a general rule there are no credits or rebates given for the taxes paid on that furniture first time around. Not all used items are taxed. Used houses are not subject to HST.
Do you have to pay taxes on crafts I sell?
The answer is: nope. According to the IRS, if you make income from selling items at a craft fair, whether it’s a hobby or your primary business, you are required to report the income on your tax return.
Do you have to pay sales tax on used items on eBay?
No. eBay only collects and remits Internet Sales Tax on the sale price of your items.
Do you pay GST on used goods?
You can claim GST credits for your purchases of second-hand goods even if the price you paid did not include GST. You can do this for second-hand goods that you purchase for resale from sellers who do not charge GST in the price of the goods.
Do you pay HST on a used tractor?
For example, a tractor must have a rating of at least 60 PTO horsepower to be eligible for zero-rated status, regardless of whether it’s used for farming. In addition, if the original equipment is altered to the extent that it is no longer designed for farm use, it will be subject to GST/HST.
Does Ontario water bill have HST?
Yes, GST/HST applies to the services provided by Water Services Inc. even if Water Services Inc. charges an amount for water, water and delivery services, or just a delivery service.
Do I charge GST/HST on services performed outside of Canada?
You do not charge the GST/HST on services you perform totally outside Canada, or on services that relate to real property situated outside Canada. Services, other than transportation services, that you perform on temporarily imported goods are zero-rated.
Why do I charge 13\% HST on the sale?
You charge 13\% HST on the sale because the place of supply is Ontario. For detailed place-of-supply rules, see GST/HST rates and place-of-supply rules. Some supplies of products or services are GST/HST exempt.
How do I know which supplies are GST/HST taxable?
On most commercial imports, however, only the federal (GST) portion of the HST is applied to the sale. To know which supplies are GST/HST taxable and at which rate, see Which GST/HST rate to charge. Select the situation that applies to you to get more details.
What is goods and Services Tax (GST) in Canada?
Basically, if you sell goods and services in Canada, you must charge customers the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST) unless your business qualifies as an exception (see below).