If you sell on eBay Canada, the sales tax mechanics are different from Amazon and Walmart. eBay collects Canadian GST/HST, PST, and QST on every order from a Canadian buyer, and eBay remits it directly to CRA and the provinces. Unlike Amazon, eBay does not pass the tax through to your seller payout when you become GST/HST registered. Instead, eBay sends registered sellers a billing agent election form, and eBay continues to handle the collection and remittance on your behalf as your billing agent.
This is the same framework we walk through with every Canadian and non-resident eBay client. The platform-specific quirks (especially the billing agent election) are the focus here. For the related marketplaces, see our Amazon Canada GST/HST guide and Walmart Canada marketplace guide.
The short answer
eBay Canada collects and remits all Canadian sales tax (GST/HST, PST, QST) directly to the tax authorities on every Canadian sale. Unlike Amazon or Walmart, eBay does not flow the GST/HST into your seller payout when you become registered. Instead, eBay sends registered sellers a billing agent election form and continues to act as your collection and remittance agent. You should still register for GST/HST once your worldwide taxable sales pass $30,000 because it lets you recover input tax credits on eBay’s Canadian fees (final value fees, payment processing, Promoted Listings), Canadian-side fulfillment costs, and any imports. Registration is about ITC recovery, not about taking over the collection from eBay.
How marketplace facilitator rules apply to eBay Canada
Canada brought in marketplace facilitator rules for digital platforms federally in July 2021, and BC, Saskatchewan, Manitoba, and Quebec added their own marketplace rules in the same period. eBay was required to register and collect under those rules. Effective July 1, 2022, eBay started collecting Canadian GST/HST, BC PST, SK PST, MB RST, and Quebec QST on Canadian buyer orders and remitting that tax directly to CRA and the relevant provincial revenue agencies. eBay’s policy is documented on the eBay Canada Seller Centre Tax Information page and in the eBay Tax Policy.
The key difference from Amazon and Walmart: eBay does not flip into a pass-through mode when you register. eBay keeps remitting directly. What changes when you register is the legal mechanism: eBay shifts from collecting under marketplace facilitator deemed-supplier rules to collecting as your appointed billing agent, and you receive a billing agent election form to keep in your records.
eBay Canada vs the other marketplaces
Federal and provincial marketplace facilitator rules apply across all three big marketplaces. The collection happens at the platform layer everywhere. Where the platforms differ is what happens after collection, especially for registered sellers.
| Question | Amazon Canada | Walmart Canada | eBay Canada |
|---|---|---|---|
| Marketplace facilitator status | Yes | Yes | Yes |
| Collects + remits when seller not registered | Yes, to CRA | Yes, to CRA | Yes, to CRA |
| What happens when seller registers | Amazon passes GST/HST through to your disbursement; you remit on your GST return | Walmart passes GST/HST through to your payout; you remit on your GST return | eBay continues to remit directly. You receive a billing agent election form for your records |
| Collects + remits PST/QST in BC, SK, MB, QC | Yes, directly to province | Yes, directly to province | Yes, directly to province |
| Fulfillment program | Amazon FBA | Walmart Fulfillment Services Canada | None native (seller-fulfilled or third-party) |
| Seller dashboard | Seller Central | Seller Center | Seller Hub |
| Recoverable fee GST as ITC (when registered) | Referral, FBA, advertising | Referral, WFS, advertising | Final value fees, payment processing, Promoted Listings, store subscription |
If you sell on more than one marketplace, you cannot apply the same operational pattern across them. The Amazon and Walmart muscle memory of “I remit the GST that flowed through to my payout” does not apply to eBay.
The billing agent election explained
Once you have a GST/HST number and your account is verified, eBay sends you a billing agent election form (and a separate one for QST if you sell into Quebec). The form documents that eBay is appointed as your agent for collection and remittance of Canadian sales tax under section 177 of the Excise Tax Act (and the QST equivalent under the Quebec Sales Tax Act). eBay describes the appointment on its Seller Centre tax information page.
What you do with it:
- Keep a signed copy in your tax records. CRA may ask for it during a GST/HST audit to confirm why the GST you “collected” on eBay sales does not appear on your line 105 supplies.
- You do not need to remit anything from the billing agent election form yourself. eBay handles the remittance based on the election.
- If you also sell into Quebec, sign the QST equivalent so Revenu Quebec sees a parallel chain.
Practically, the election is paperwork that documents what eBay is already doing operationally. It matters at audit time, not in your monthly bookkeeping.
What eBay collects, province by province
The collection rates are the same as Amazon and Walmart. The destination province sets the rate.
| Province / Territory | Combined rate | Who collects | Who remits |
|---|---|---|---|
| Ontario (HST) | 13% | eBay | eBay (direct to CRA) |
| Nova Scotia, NB, PEI, NL (HST) | 15% | eBay | eBay (direct to CRA) |
| Alberta, Yukon, NWT, Nunavut | 5% (GST only) | eBay | eBay (direct to CRA) |
| British Columbia | 5% + 7% = 12% | eBay | eBay (GST direct to CRA, PST direct to BC) |
| Saskatchewan | 5% + 6% = 11% | eBay | eBay (GST direct to CRA, PST direct to SK) |
| Manitoba | 5% + 7% = 12% | eBay | eBay (GST direct to CRA, RST direct to MB) |
| Quebec | 5% + 9.975% = 14.975% | eBay | eBay (GST direct to CRA, QST direct to Revenu Quebec) |
Worked example: an eBay Canada sale
$150 sale shipped to Ontario, registered seller
You sell an item for $150 to a buyer in Ontario. HST rate is 13%.
HST (13%) ……………….. $ 19.50
Total buyer pays …………. $169.50
HST kept by eBay for remittance to CRA: $19.50
Net order amount before fees: $150.00
Less eBay final value fee + payment processing (about 13%): −$19.50
Less HST on those fees (13% of $19.50): −$2.54
Net to your seller payout: about $127.96 (varies by category)
Result: the $19.50 of HST never enters your books as collected tax. You do not include it on line 105 (supplies). The $2.54 of HST embedded in the eBay fees is recoverable on line 108 (input tax credits) on your next GST/HST return, which is the main reason a registered eBay seller files a return at all.
For an unregistered seller, the cash flow is identical except you cannot claim the $2.54 ITC. eBay still collects and remits the same $19.50.
How to handle eBay sales on your GST/HST return
For a registered seller using eBay as a billing agent, the standard reporting pattern is:
- Line 101 (sales and other revenue): include the gross taxable Canadian eBay sales (the $150 in the example above). This shows CRA the size of your business activity.
- Line 105 (total GST/HST and adjustments): do not include the GST/HST collected by eBay under the billing agent election. eBay reports and remits this directly. Including it would result in double-remittance.
- Line 108 (input tax credits): include the GST/HST embedded in eBay’s final value fees, payment processing fees, Promoted Listings, store subscription, and any Canadian-side business expenses (fulfillment, freight, customs/duties, software).
Keep the billing agent election forms in your records. At audit time, CRA reconciles the gap between line 101 (the gross sales on eBay) and line 105 (zero from eBay) by reference to the election.
eBay-specific quirks to know
Auction-style listings and final-value uncertainty
eBay’s auction format means the final sale price is set by bidding, not by you. The tax math is the same regardless: tax applies to the winning bid plus shipping, calculated at the destination’s provincial rate. No special handling required for auction sales versus fixed-price listings.
Used goods, antiques, and collectibles
eBay is heavier in used inventory than Amazon or Walmart. For Canadian tax purposes, used goods sold by a business are subject to the same GST/HST as new goods. The “GST/HST does not apply to used goods” rule applies to private individual sales, not commercial sellers. eBay collects on used and new alike.
Cross-border sales (Canadian seller to US buyer)
When a Canadian seller ships to a US buyer through eBay’s cross-border tools, the sale is a zero-rated export for Canadian GST/HST purposes. eBay does not collect Canadian tax on those sales. The revenue still counts toward your worldwide taxable sales for the $30,000 registration threshold. US state sales tax obligations depend on whether you have economic nexus in any state, which is a separate question outside this guide.
Promoted Listings and eBay ads
Promoted Listings fees and other eBay advertising spend are subject to GST/HST and recoverable as an input tax credit once you are registered. This is the eBay analog of Amazon’s Sponsored Products spend or Walmart Connect advertising.
How to set up tax in eBay Seller Hub
Once you are GST/HST registered, you need to provide eBay with your registration number so eBay can issue the billing agent election form and reflect your registered status in your seller record.
- Log in to eBay and go to Seller Hub.
- Open Account Settings > Sales tax / Business policies.
- Enter your 15-digit GST/HST registration number from CRA (format
123456789RT0001). If you also sell into Quebec, enter your QST number on the same screen. - Confirm your business legal name and address match what CRA has on file. Mismatches stall verification.
- Save. eBay verifies the number and sends the billing agent election form.
- Sign and keep the election form in your tax records. eBay continues to collect and remit on your behalf under the election.
The change is forward-looking. eBay does not retroactively change handling for past orders.
Input tax credits on eBay fees: the real reason to register
Once you are GST/HST registered, you can claim back the GST/HST charged on eBay final value fees, payment processing fees, Promoted Listings spend, and store subscription fees. For active sellers these ITCs add up quickly.
A seller doing $100,000 of Canadian eBay revenue typically pays roughly $13,000 in final value fees, $3,000 in payment processing, and a few thousand more in Promoted Listings. The GST/HST embedded in those fees is recoverable as an ITC for registered sellers and a sunk cost for unregistered sellers. The recovery often exceeds the GST collected on direct (non-marketplace) sales channels for the first few years, which is why eBay-only sellers should still register even though eBay handles the tax operationally.
Full mechanics in our Input Tax Credits pillar guide, which applies the same way to eBay sellers as to Amazon sellers.
The most common eBay seller tax mistakes
Every one of these comes up in client cleanups when sellers join eBay as a second channel or set up eBay as their first marketplace. All preventable, all costly when missed.
- Applying the Amazon pass-through pattern to eBay. The single biggest mistake: assuming that once you register, eBay starts flowing GST/HST into your payout the way Amazon does. It does not. eBay continues to remit directly under the billing agent election. If you report eBay-collected HST on line 105 of your return, you will double-remit and need a refund.
- Not providing your GST/HST number to eBay. Without it, the marketplace facilitator collection still happens (so the cash flow is identical), but you miss out on the billing agent election form. CRA may treat the gap on your return as unreported sales without the election in your records.
- Double-paying PST that eBay already remitted. Sellers see PST or QST line items in eBay reports and assume they need to remit them on their provincial returns. They are already settled by eBay.
- Treating used-goods sales as exempt. Used goods sold by a business are subject to the same GST/HST as new goods. eBay collects on them. The “used goods are not taxable” rule is for private individual sales.
- Missing ITC recovery on eBay fees. Final value fees, payment processing fees, Promoted Listings, and store subscription fees carry GST/HST that is recoverable as an ITC. Most sellers reconcile the fees into expense accounts but forget to claim the embedded GST.
- Confusing eBay.ca vs eBay.com sales. A Canadian seller selling to a Canadian buyer on either eBay.ca or eBay.com is making a Canadian sale subject to Canadian tax. Sellers sometimes treat eBay.com sales as US-only and skip the Canadian reporting.
Frequently asked questions
Does eBay Canada put the GST/HST it collects into my disbursement?
No. eBay collects the tax from the buyer at checkout, holds it as part of the gross order total in payment processing, and remits it directly to CRA and the relevant provincial revenue agencies. The net amount eBay deposits into your account is the sale price less eBay’s fees, not the gross including tax. This is confirmed on the eBay Canada Seller Centre Tax Information page. The mechanic is different from Amazon and Walmart, where registered sellers receive the GST/HST in their disbursement and remit it themselves.
Then why register for GST/HST at all if eBay handles the collection?
Two reasons. First, registration is mandatory once your worldwide taxable sales pass $30,000 CAD in any rolling 12-month period regardless of which platform the sales are on. Second, registration unlocks input tax credits on the GST/HST eBay charges you on its final value fees, payment processing, Promoted Listings, store subscription, and on any Canadian-side business expenses (fulfillment, freight, customs/duties, software, advertising). For an active eBay seller these recoveries often run into the low five figures per year.
What is the billing agent election form?
It is the document eBay sends you (after you provide your GST/HST number) that records eBay’s appointment as your agent for collection and remittance of Canadian sales tax under section 177 of the Excise Tax Act. You sign it and keep a copy in your tax records. You do not file the form with CRA, but CRA may request it during an audit to verify why the tax on your eBay sales does not appear on line 105 of your GST/HST returns.
How do I report eBay sales on my GST/HST return?
Include the gross taxable Canadian eBay sales on line 101 (sales and other revenue). Do not include the GST/HST eBay collected on line 105 (eBay reports and remits that directly under the billing agent election). Claim the GST/HST embedded in eBay fees and Canadian business expenses on line 108 (input tax credits). At audit time, CRA reconciles the line 101 vs line 105 gap against the billing agent election in your records.
Are eBay final value fees subject to GST/HST?
Yes. eBay charges Canadian GST/HST on final value fees, payment processing fees, Promoted Listings spend, and store subscription fees. Once you are GST/HST registered, the tax on those fees is recoverable as an input tax credit on your GST/HST return.
Are used goods I sell on eBay taxable?
Yes, if you are selling as a business. eBay collects GST/HST on used and new goods alike. The “GST/HST does not apply to used goods” rule covers private individual sales, not commercial sellers.
What if I sell to a US buyer through eBay?
Sales to US buyers and other international buyers are zero-rated exports for Canadian GST/HST purposes. eBay does not collect Canadian tax on those sales. The revenue still counts toward your worldwide $30,000 registration threshold. US state sales tax is a separate question that depends on whether you have economic nexus in the destination state.
Does eBay Canada have a fulfillment program like Amazon FBA?
No. eBay does not operate its own Canadian fulfillment service. Sellers ship orders themselves or use a third-party 3PL. There is no eBay equivalent of FBA Canada or Walmart Fulfillment Services Canada.
I sell on both Amazon and eBay. Do I file two GST/HST returns?
No. Your GST/HST return aggregates sales from all channels. Line 101 includes the gross taxable Canadian revenue across all sources. Line 105 includes only the GST/HST you (or marketplaces flowing through to you, like Amazon and Walmart) collected. eBay-collected tax is not on line 105 because eBay remits directly under the billing agent election. Line 108 includes ITCs on fees from all platforms. One return covers everything.
What to do next
If you sell on eBay Canada and you are close to or past the $30,000 worldwide revenue threshold, register for GST/HST and provide your number to eBay. The GST/HST you pay on eBay’s Canadian fees (and on anything else eBay-adjacent) becomes recoverable, which is where the return on registration shows up for eBay-heavy sellers. If you also sell on Amazon, Shopify, or Walmart, the same registration covers all channels and the bookkeeping consolidates into one GST/HST return.
We handle this end-to-end for our e-commerce bookkeeping and Non-Resident GST/HST clients: the registration, the Seller Hub setup, the billing agent election paperwork, the multi-channel reconciliation, and the ongoing returns. Get in touch with a short note about your monthly eBay volume, whether you also sell on other marketplaces, and whether you have a GST/HST number yet. We respond within one business day with a fixed-fee quote. Pricing on our pricing page.
Related reading from our blog:
- Does Amazon Collect and Remit GST/HST for Sellers on Amazon Canada? (2026)
- Walmart Canada Marketplace Sales Tax: GST/HST, PST, and WFS Setup for Sellers
- Shopify GST/HST for Canadian Sellers: Decision Tree, Setup, and 2026 Rates
- Input Tax Credits for Amazon Canada Sellers: How to Recover the GST You Are Already Paying
- Amazon FBA Canada GST/HST for Non-Resident Sellers: When to Register and Why