Reverb Canada- I'm done with them. Taxing Used now

Man, I didn’t realize that but I don’t think I’ve bought anything from Reverb this summer except for an open-box speaker that was in a local shop that I picked up local and knew I had to pay tax. Didn’t realize that applied to non-business folks now. Maybe because it’s Reverb who is really the seller and conducting the transaction
 
nigelpkay said:
Man, I didn’t realize that but I don’t think I’ve bought anything from Reverb this summer except for an open-box speaker that was in a local shop that I picked up local and knew I had to pay tax. Didn’t realize that applied to non-business folks now. Maybe because it’s Reverb who is really the seller and conducting the transaction
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I suspect that is why. We are all " employees" at a used music store if we sell and if we buy, we are customers. It's a shame. Looks like they have their claws into everything. Too bad that Canada has such a terrible scene for instruments and gear.i bet the used Market is great in LA or Nashville.
 
Kapo_Polenton said:
I guess Canada is late to the party then.. crazy to think we all have to put up with this. I get that i am totally bitching and this is a 1st world problem but I tell ya, it's a good way to kill our passion as musicians. So do any of you guys who sell on this site get dinged after the fact by uncle Sam? Do they have their claws into PayPal too then?
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Yep, they have their claws in PayPal too.
 
Is it any wonder that tax revenues are the highest they have ever been..................and they still only service the US debt.......

Taxing items over and over and over..........................................

Signs of a BANKRUPT government?:dunno:
 
There is no justification for this, someone paid taxes on it new, now every time it moves hands used it gets taxed ? That is nothing less than theft as far as I see it, there is no income being made here or cash flow it is an item being purchased. The only reason this is existing is because the people accept it, if people flooded the streets they would take back the taxes and lower them. Guaranteed 100% if people stood up to this shit for once it would not be this bad. Canada is a tax slave farm.
 
lessarti said:
There is no justification for this, someone paid taxes on it new, now every time it moves hands used it gets taxed ? That is nothing less than theft as far as I see it, there is no income being made here or cash flow it is an item being purchased. The only reason this is existing is because the people accept it, if people flooded the streets they would take back the taxes and lower them. Guaranteed 100% if people stood up to this shit for once it would not be this bad. Canada is a tax slave farm.
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Pretty much. In fact, as someone else mentioned, in most cases a used item is sold at a LOSS. Now a Les Paul Custom from 1979 or something sure I get it. The problem is that the "experts" aren't experts in this field and it is a quicker and more profitable solution to just tax EVERYONE vs classifying big ticket. So yes, the guy who sells to me might actually take a loss when you factor in fees but the gov. won't let him record that. Yet if I take a loss on my investments for example, I can claim those to counter balance my capital gains. Or better yet, the gov. in Canada gives us tax free savings accounts which you are allowed to plow up to 80k total into now with an additional 6k or so year after year. So any stock or dividend gains you make in there aren't taxed. Crazy isn't it? It's like a mini tax shelter that is legal yet don't you DARE sell any used goods to each other without paying tax! You dirty criminals! Oh, and recognize everyone's pronouns while you are at it you cavemen.
 
People get real hung up on this idea that the tax collected is tax on the "item" and the government is constantly retaxing items someone already paid THE TAX on. The government does not care about the item. The item is irrelevant. The tax is on the financial transaction. When you use financial institutions to conduct transactions you should expect to pay taxes on the transaction.

Almost everyone can completely offset any 1099 they get from Paypal or Reverb with expenses against that 1099. Unless you are turning a substantial profit on everything you sell, which makes you a business anyway, you likely won't end up paying much in taxes.
 
BSRIAudio said:
People get real hung up on this idea that the tax collected is tax on the "item" and the government is constantly retaxing items someone already paid THE TAX on. The government does not care about the item. The item is irrelevant. The tax is on the financial transaction. When you use financial institutions to conduct transactions you should expect to pay taxes on the transaction.

Almost everyone can completely offset any 1099 they get from Paypal or Reverb with expenses against that 1099. Unless you are turning a substantial profit on everything you sell, which makes you a business anyway, you likely won't end up paying much in taxes.
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people lash out at what they dont understand or are ignorant to.

anyone that blames ebay, reverb, paypal, etc is foolish for not paying attention to current events.

** democrats in congress have proposed a bill to raise the limit from $600 to $5000. it was sent to pelosi with 12 congressional signatures attached in feb or march, so it should get some lift in the fall session.

who ever put together the final language of the income tax section of the american relief bill is the one that did this, and we can argue if it was rep or dem due to the amount of back and forth thst occurred, but no matter it was a terrible mistake OR malicious attack on the middle and lower class.

even if they fix it, im selling via paypal f/f this year and that will slow my flipping so maybe its for the better
 
BSRIAudio said:
People get real hung up on this idea that the tax collected is tax on the "item" and the government is constantly retaxing items someone already paid THE TAX on. The government does not care about the item. The item is irrelevant. The tax is on the financial transaction. When you use financial institutions to conduct transactions you should expect to pay taxes on the transaction.

Almost everyone can completely offset any 1099 they get from Paypal or Reverb with expenses against that 1099. Unless you are turning a substantial profit on everything you sell, which makes you a business anyway, you likely won't end up paying much in taxes.
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...Except if you traded for something, or bought something 8 years ago on a forum, or paid cash on a local deal...

I sold $5k worth of stuff last year on Reverb and was able to offset it because thankfully I bought all of it from Reverb or Guitar Center. This year I have a bunch of pedals, and a couple amps I got in trades or bought years ago. No way to prove the value of that under the scrutiny of an audit. An audit is unlikely, but still..
 
As far as I understand, Reverb is following the local laws and regulations, and they may have been required to charge taxes on used items under Canadian law, unfortunately, as private sellers, they are not able to claim it back or avoid the taxes. On another hand, regarding the taxes on used items, it is not a new concept, it is a long-established principle that all sales of goods, including used items, are subject to taxes. As you mentioned, maybe you can try to contact the seller or customer service to get an explanation or clarification on their policies. Additionally, it's important to budget for unexpected costs, like taxes, using a check stub generator could help you to plan and adjust your budget accordingly.
 
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Askinator said:
As far as I understand, Reverb is following the local laws and regulations, and they may have been required to charge taxes on used items under Canadian law, unfortunately, as private sellers, they are not able to claim it back or avoid the taxes.
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It's hurting the seller big time. I can't see myself buying used on Reverb anymore.
 
Anyone think Reverb and Ebay wanted to start collecting and remitting taxes to 1000's of different tax jurisdictions throughout the world? They wanted, with no increased profit to them, to take on that massive burden and hire departments of people to make it happen? Governments have forced them to do this. How can anyone think any of these online businesses wanted to do this?
 
Chubtone said:
Anyone think Reverb and Ebay wanted to start collecting and remitting taxes to 1000's of different tax jurisdictions throughout the world? They wanted, with no increased profit to them, to take on that massive burden and hire departments of people to make it happen? Governments have forced them to do this. How can anyone think any of these online businesses wanted to do this?
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Great point. They were making their cut regardless.... BUT they could entice me by eating 5% tax on used goods at least. Now we will see WHO is greedy and who is just the government :p
 
Kapo_Polenton said:
Great point. They were making their cut regardless.... BUT they could entice me by eating 5% tax on used goods at least. Now we will see WHO is greedy and who is just the government :p
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We all knew that online buying was a loophole where we could escape sales tax and we all should have known that as soon as it was possible our politicians would close the loophole.
 
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