How do I know if I should charge my buyer sales tax on an item?

 How do I know if I should charge my buyer sales tax on an item? The item is in Canada and is sold to a buyer in the United States. 

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How do I know if I should charge my buyer sales tax on an item?

First are you registered to collect and more importantly REMIT GST/PST/HST in your province?

Do you have a physical presence in other provinces or territories?

 

If you do not have a 'sales tax number' do NOT try to collect sales tax. Revenue Canada is touchy about that.

 

IF you are registered to collect sales taxes, you do NOT charge them on exports.

However

You can adjust the amount of GST you remit by the amount of GST you paid on items shipped outside of Canada.

 

If you are big enough to be registered to collect taxes, you are also making enough money to make it well worthwhile to discuss your situation with a tax accountant who is familiar with online selling and with export sales.

 

Free advice is worth every penny you pay for it.

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How do I know if I should charge my buyer sales tax on an item?


@nyczai123 wrote:

 How do I know if I should charge my buyer sales tax on an item? The item is in Canada and is sold to a buyer in the United States. 


Sold to outside Canada: No sales tax is collected by the seller.

 

Inside Canada: Sales tax can only be legally collected if you are registered to collect sales tax.

 

http://www.cra-arc.gc.ca/E/pub/gp/rc4022/README.html

 

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How do I know if I should charge my buyer sales tax on an item?

I see your from Winnipeg, Manitoba.

 

If your gross on-line sales is 30,000.00 or more you will have to register for a GST number.

 

If you qualify for GST then you will have to charge GST on all Canadian Sales, but not for any International Sales (USA and the rest of the world). 

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How do I know if I should charge my buyer sales tax on an item?

CORRECTION:

 

I see your from Winnipeg, Manitoba.

 

If your gross sales is 30,000.00 or more you will have to register for a GST/PST number.

 

If you qualify for GST then you will have to charge GST on all Canadian Sales, but not for any International Sales (USA and the rest of the world). 

 

You will only charge PST on sales within the Province of Manitoba and not for the rest of Canada. 

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How do I know if I should charge my buyer sales tax on an item?

If you are selling several thousands of dollars per month and registered as a business to collect tax, then you will know it. 

 

If not, the time has not yet come to worry about it.

 

 

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How do I know if I should charge my buyer sales tax on an item?

AND SEND THAT $5,000 ITEM WITH TRACKING AND SIGNATURE!

 

That is imperative. No surface shipping, only Xpresspost or via courier. 

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