Taxes: Canada Sales Tax

From July 1st Depop will start collecting tax on relevant purchases from Canadian buyers in the followings scenarios:

When are buyers charged? 

GST/HST will be charged at checkout where:

• a physical item will be shipped from a seller in Canada to a buyer in Canada.
  
• A digital item is sold to a Canadian buyer from a non-Canadian seller.

QST will be charged at checkout where:

• A physical item will be shipped from a seller’s Canadian address to a buyer’s Quebec address. 

PST will be charged at checkout on all physical items delivered to buyers in British Columbia. 

PST will be charged at checkout on all physical items delivered to buyers in Saskatchewan. 

RST will be charged on physical items delivered to buyers in Manitoba.  

Depop is required by law to collect these taxes from your buyers in Manitoba, Saskatchewan and British Columbia and remit it to the local tax authorities, regardless of whether you have a  registered tax ID from these provinces.

Depop will only charge the buyer taxes on items if taxes are ordinarily applied to the item in these regions, assuming that it is listed correctly. For example, Depop will not tax children's clothing in British Columbia, since it is not ordinarily subject to PST there.

What does this mean for me as a buyer?

This Canada Sales Tax will be applied automatically to applicable transactions. You’ll see it included in your purchase breakdown on the checkout page. 

What does this mean for me as a seller?

Depop will calculate and collect this tax directly. The Canada Sales Tax will be automatically charged to the buyer and included in your buyer’s purchase breakdown. You don’t need to pay an extra fee for this service, and you don’t need to change how you price your items. 

As a seller, selling into Manitoba, Saskatchewan or British Columbia you will need to write ‘tax paid’ and the amount in CAD on your package before sending so that your buyer is not double charged tax upon receipt of the item.

Do I need to register for Canadian tax IDs? 

Canadian tax regulation requires sellers to register for a GST/HST ID and to collect and remit the tax to the CRA once they’ve reached $30,000 CAD in sales. Sellers who have not met this threshold may not be required to register for a Canadian Tax ID, but should make the decision for themselves on whether it makes sense for their business.

The provinces of Quebec, Manitoba, Saskatchewan and British Columbia also have their own tax rules.

Depop currently does not support excluding sellers from tax collection at checkout if they are GST registered, registered sellers will need to agree to Depop acting as a billing agent and remitting this tax on their behalf. (See below)

If you need help registering for GST/HST or any other taxes, or have other questions on your tax obligations, please reach out to your tax and legal advisor. 

How do I tell Depop I am registered with the Canadian Tax authorities?

Depop currently does not support excluding sellers from tax collection at checkout if they are GST registered, registered sellers will need to agree to Depop acting as a billing agent and remitting this tax on their behalf.

To do this the seller must complete the following form for residents of Quebec or residents of the rest of Canada. Once this form has been completed it must be sent over to us so that Depop Support can start this process.