1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Buying Wholesale and Selling on Ebay Laws

Discussion in 'Business & Tax Advice' started by ittoryu25, Jun 15, 2014.

  1. ittoryu25

    ittoryu25 Newbie

    Joined:
    Jun 15, 2014
    Messages:
    1
    Likes Received:
    0
    Hi,

    I'm buying some merchandise from China wholesale and reselling them on eBay. I was wondering if I need to declare taxes or declare the sales on eBay as income of any type (I live in Quebec, Canada if that matters). I basically want to know if there's anything I need to know to be selling on eBay legally. Will I need to create a business to sell these products on eBay? I have no experience in this regard so any advice or information would be appreciated.

    I just want to make sure that I am obeying the law while selling on eBay. Please let me know if I posted it in the wrong section and/or move it to the right section.

    Thanks.
     
  2. casestudy

    casestudy Jr. VIP Jr. VIP

    Joined:
    Apr 4, 2012
    Messages:
    150
    Likes Received:
    14
    its only based on your countries laws
     
  3. Numbuh362

    Numbuh362 Elite Member

    Joined:
    Aug 22, 2012
    Messages:
    1,568
    Likes Received:
    461
    I don't know too much about canada but in the US you have to pay sales and income taxes, just keep track of all of your expenses so you can deduct costs and write down losses and you'll be alright.
     
  4. bob2020

    bob2020 Newbie

    Joined:
    May 29, 2014
    Messages:
    22
    Likes Received:
    5
    If you're importing goods, you'll probably need to pay customs duty on them against their value. Depending on how much you make, you'll also need to declare any income or gains you make from your 'business' so you can pay tax on them. Get an accountant if you're going to be making a serious amount, dodging tax is bad if you get caught.
     
  5. markj892

    markj892 Newbie

    Joined:
    May 27, 2010
    Messages:
    5
    Likes Received:
    0
    I believe Paypal (or Ebay) will send you a schedule c Tax form ONLY if you make over 20k(from XXX different ppl) that year (sent to your paypal from ebay). or at least that is what I have been told and read from ebay and paypal.

    I would suggest keeping your receipts and starting a "sole proprietorship" or even "LLC" - this way you can write off some of your fee's, losses, driving....but make sure you check before you write it off.

    Bonus - if you do not have a business location (store - storage - you are drop shipping) you are a "Nexus" and have a few different options regarding Taxes.