As a seller in Ontario, do I need to register for PST in BC and RST in Manitoba?

[nickdisk]

I'm based in Ontario and I already registered for GST/HST. Do I also have to register in British Columbia for PST and Manitoba's RST? I'm having a hard time finding a clear answer.

I operate as a single person only in Ontario and ship worldwide.

[femmefan1946]

Are you grossing over $30,000 annually from selling (B&M or online)?

If you are talk to a tax accountant who is familiar with mail order selling.

Don't get excited about selling online, it's still mail order and it's been around for centuries.

If not, don't worry about it.

"The law does not concern itself with trifles."

Keep track of all your sales and expenses though. You should be including your profits (not gross) on your income tax.

[cumos55]

If sales... PLUS.....  postage are greater than $30,000 annually then a seller must register to collect GST/HST

Many people forget that the total must include the cost of postage. A Buyer pays one lump sum for purchased item plus postage  and the seller buys the postage, as a business expense.

As a resident of Ontario you do not have to be concerned about PST  or RST  in GST provinces....  Quebec is uniquely different  and for non-residents of Quebec it is GST only.

-----------------------------

It may be advantageous to register for GST/HST if the total is less than $30,000.  This becomes important .....

--- if most of a seller's sales are to the US, that is outside of Canada, and then 

---  eBay now charges GST/HST/QST on fees......  For an Ontario seller that is HST = 13 %

--------------------------------------------

I live in Manitoba.... and sell books which are exempt from RST or the provincial component of HST  in all provinces except Newfoundland, where the full amount of HST = 15 % is now levied on books.  I still collect HST on books, but it is HST = 5 %. for all of the  HST provinces other than Newfoundland.

For Manitoba I must register to collect RST if my sales  for non-book items exceeds $10,000 each year.

---------------------------

A reference to RST... Retail Sales Tax.... for Manitoba was something new to me, until  I did a search on the internet for Manitoba RST.  RST today  is the old PST,  Provincial Sales Tax.

[nickdisk]

I appreciate the responses, but my question was just about PST. I totally understand the concept of GST/HST inside an out. What I need clarification on is if it is required to register in BC and Manitoba for PST. Some websites, like the one below say I need to:

https://canadabusiness.ca/government/taxes-gst-hst/federal-tax-information/overview-of-charging-and-...

This site says:

You are required to register to collect PST if you regularly do any of the following:

• Sell taxable goods, taxable software or telecommunication services to customers in BC
• Accept purchase orders for taxable goods, taxable software or telecommunication services from customers located in BC
• Deliver taxable goods to a location in BC
• Solicit persons in BC (through advertising or other means) for orders to purchase taxable goods, taxable software or telecommunications services

And for Manitoba:

If you sell taxable goods and services to residents of Manitoba, you are required to register under the Retail Sales Tax Act and collect retail sales tax, if all of the following apply:

• You solicit sales in Manitoba (via advertising or other means).
• You accept orders originating in Manitoba.
• The taxable goods are for consumption/use in Manitoba — not for resale.
• You cause the taxable goods to be delivered to Manitoba, regardless of who pays for the delivery.

It says that PST for Quebec and Saskatchewan are optional and is up to the buyer if the seller doesn't remit the PST/QST.

[nickdisk]

Now according to this website below, I do not have to register for PST in BC.

https://www.thebalance.com/does-your-business-need-to-register-for-bc-pst-2948446

It says an interesting point:

Businesses located outside BC that do all of​ the following are also required to register for and collect BC provincial sales tax:

• 1. Sell taxable goods or software to customers in British Columbia.
• 2. Accept purchase orders (including by telephone, mail, e-mail or Internet) from customers located in British Columbia.
• 3. Deliver taxable goods or software to a location in British Columbia. Delivery into British Columbia includes goods and software that you ship physically or electronically, even if you deliver the goods through a third party, such as a courier.
• 4. Solicit sales in British Columbia (through advertising or other means, including mail, e-mail, fax, newspaper or the Internet) for orders to purchase taxable goods or software.

If you are involved in online sales, you will be especially interested to know that the BC government does not consider you to be soliciting sales in BC if your website, which is accessible from anywhere in the world, does not target British Columbia. However, they say, "if you have a website and also solicit sales in British Columbia by other means, such as through targeted internet advertisements, promotional flyers, or newspaper advertisements, you are soliciting sales in the province".

Registering to Collect Provincial Sales Tax (PST), The BC government's Bulletin PST 001, provides more details about exactly which businesses have to register for BC PST.

Here is Bulletin PST 001:

https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-001-registering-to-collect-pst....

It says the same thing but has this note:

Note: If you have only a website that is accessible from anywhere in the world, which does not target BC, you are not soliciting sales in BC. However, if you have a website and also solicit sales in BC by other means, such as through targeted Internet advertisements, promotional flyers or newspaper advertisements, you are soliciting sales in BC.

As an ebay seller, do I solicit sales? What is the business meaning of this phrase?

As for Manitoba RST, it seems I might not be required: According to Bulletin No. 004 The Retail Sales Act:

http://www.gov.mb.ca/finance/taxation/pubs/bulletins/004.pdf

Out-of-province businesses that sell/lease taxable goods to Manitoba purchasers who are acquiring the goods for consumption or use in Manitoba i.e. not for resale, are required to be registered as a vendor under the Act and to collect the RST if:

a) The seller

i. causes the goods to be delivered in Manitoba, i.e., delivered by the seller, or shipped by arrangement of the seller by common carrier, whether or not the goods are shipped at a specified cost to the customer,

ii. solicits the order for the sale in Manitoba, directly or through an agent, by advertising or any other means, e.g. in person, by telephone, mail, e-mail, fax, posters, television or newspaper advertisement, and

iii. accepts orders originating in Manitoba to purchase tangible personal property. The order can be originated by telephone, Internet, e-mail, fax, letter or any other means from a location in Manitoba to the seller or agent located in or out of Manitoba; or

b) The seller holds inventory of taxable goods in the province, available for sale to Manitoba customers

 Again it says I have to solicit the order. Does an ebay listing count as a solicitation?

[ypdc_dennis]

Do you do less than $10 thousand in annual sales to BC?  to Manitoba?

Then registration is not required for that province.

Over that, maybe.

...

Fine print: The usual value for free advice.

[rose-dee]

---

wrote:

I appreciate the responses, but my question was just about PST. I totally understand the concept of GST/HST inside an out. What I need clarification on is if it is required to register in BC and Manitoba for PST. Some websites, like the one below say I need to:

---

My advice would be to ask this question of an accountant to be certain you get current, accurate information.  Or read through the B.C. and Manitoba government ministries involved to get an answer directly.   Below are some places to start for British Columbia -- the last link is the one with pertinent information on the subject, the others are for reference and registration, etc.   I used to work in corporate/commercial law in B.C. setting up and initializing companies, and B.C. had a very efficient, easy system to use, it's probably even better now.  I'm sure Manitoba would have analogous sites (my notes are in bold): 

https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst

https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/report-pay/online   

https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/register  (to pay online)

https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-001-registering-to-collect-pst....(I'd recommend reading through this Bulletin carefully.  Note the $10,000 threshold on page 5, under "Small Sellers" -- if you fall into this category, you don't need to register.  Manitoba may have similar provisions, try the Ministry of Finance there for RST sales tax information). 

[pjcdn2005]

There may be some  ebay sellers that don't have a presence in BC or Manitoba that have registered to collect pst for those 2 provinces but I'm not familiar with any. On the page that I looked at the wording is slightly different in the information than what you posted.

https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-001-registering-to-collect-pst....

Businesses in Canada but Outside BC

You must register to collect and remit PST if you are located outside BC (see Location of Your Business below) but within Canada and regularly do all of the following

• Sell taxable goods to customers in BC
• Accept purchase orders (including by telephone, mail, email or Internet for taxable goods from customers located in BC
• Deliver taxable goods to a location in BC (this includes goods you ship physically or electronically, even if you deliver the goods through a third party, such as a courier)
• Solicit persons in BC (through advertising or other means, including mail, email, fax, newspaper or the Internet) for orders to purchase taxable goods

So unless you do all of that on a regular basis you don't have to register in BC.  If you only list on ebay and do not directly solicit BC buyers then you don't regularly do the last item. They explain what they mean by solicit a bit farther down the page .

Note:

If you have only a website that is accessible from anywhere in the world, which

does not target BC, you are not soliciting sales in BC. However, if you have a website and also solicit sales in BC by other means, such as through targeted Internet

advertisements, promotional flyers or newspaper advertisements, you are soliciting sales in BC

If you are in BC and sales are less than $10,000/yr you are considered a small business and don't have to register but I don't see any specific dollar number for sellers outside of BC.

I haven't looked at any Manitoba info.

[pjcdn2005]

I just had another look at your first post and the wording about registering in Manitoba is similar to what I found in BC. If you meet all of that criteria you have to register. Assuming that by soliciting they mean the same thing that they do in BC, if you don't target BC buyers, you wouldn't have to register.

Of course I'm not an accountant so as someone else suggested, it might be prudent to contact one to find out for sure how it all works.

[recped]

Simple answer......

If you do not operate from BC or MB (have an office or warehouse) and ship all your orders from Ontario then you do not have to register for anything except GST if your gross revenue exceeds $30,000.

If your worldwide revenues are less than $30,000 registration is optional but may be advantageous depending on the value of potential Input Tax Credits. If you do register for GST then you will have to charge GST on all your Canadian sales.

[cumos55]

As a resident of Manitoba  I must register for RST (the new name for PST) if my sales for taxable items is greater than $10,000.

I sell books which are not taxable  for RST in Manitoba.   for PST or the provincial component of HST  in any other province except Newfoundland 

I have never registered to collect PST in any province other than Manitoba...  and... Then came Manitoba's  $10,000 rule.  It is because of this $10,000 rule that  I am no longer registered to collect PST on sales  of items other than books to Manitoba buyers

I am registered as a business in Manitoba,  sell on eBay, and ship only from Manitoba...  to all of my buyers  in Canada and the US.

[pierrelebel · Accepted solution]

"Do I also have to register in British Columbia for PST and Manitoba's RST?"

NO (unless you have a physical place of business in either province)

[rose-dee]

See next post - this got duplicated. 

[rose-dee]

As I mentioned above (see Post #7), you should read carefully through this B.C. government bulletin: 

https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-001-registering-to-collect-pst....

There are situations where companies outside BC are required to register for PST (the text below is taken from the bottom of page 3 of the Bulletin). 

There may be exemptions up to certain annual sales amounts (although it appears the "Small Seller" $10,000/year exemption applies only to BC resident companies).  To be absolutely certain where you stand, I'd suggest getting in touch with the BC government directly -- the contact information is at the bottom of the last page of the Bulletin, but I'll copy it here.  I'm sure you'll find similar contact information for Manitoba on their government site: 

Online: gov.bc.ca/pst

Toll free in Canada: 1 877 388-4440

Email: CTBTaxQuestions@gov.bc.ca

"Businesses in Canada but Outside BC

You must register to collect and remit PST if you are located outside BC (see Location of Your Business below) but within Canada and regularly do all of the following:

 Sell taxable goods to customers in BC

 Accept purchase orders (including by telephone, mail, email or Internet) for taxable goods from customers located in BC

 Deliver taxable goods to a location in BC, (this includes goods you ship physically or electronically, even if you deliver the goods through a third party, such as a courier)

 Solicit persons in BC (through advertising or other means, including mail, email, fax, newspaper or the Internet) for orders to purchase taxable goods"

[cumos55]

Something more to consider........  from the BC document...

If you have only a website that is accessible from anywhere in the world, which does not target BC, you are not soliciting sales in BC.

However, if you have a website and also solicit sales in BC by other means, such as through targeted Internet advertisements, promotional flyers or newspaper advertisements, you are soliciting sales in BC.

If you meet these criteria, you must be registered before delivering goods into BC, providing software for use on or with an electronic device ordinarily situated in BC, or providing telecommunication services. 

--------------------------------------------------

As sellers on eBay our target for buyers is not focused on BC....

eBay does not focus on BC... or any other province in Canada..... The focus is Canada

My focus for buyers is Canada and the US......There is no specific focus on any province of Canada, or any state in the US.

and... it is because of this that I do not have to collect provincial... PST... in BC..... or any other province  that does not have HST as the tax.  I am registered to collect GST/HST

[cumos55]

What if????

If I advertise my eBay store locally in Manitoba, as a business in Manitoba.....Manitoba regulations apply..... No problem for me as a Manitoba resident.  I will have to register if my sales of taxable items is greater than $10,000

and then....  If I find a way to advertise my eBay store on a website in BC... then I have targeted buyers in BC.....

My conclusion.... I must register to collect PST in BC.....  because I now target buyers in BC.

Or... maybe not as my sales to BC residents will not be greater than $10,000 each year.

-----------------------------------------------------

Conclusion...... Take care and follow the rules... carefully

[hamsterstamps]

Businesses in Canada but Outside BC

You must register to collect and remit PST if you are located outside BC (see Location of Your Business below) but within Canada and regularly do all of the following:

 Sell taxable goods to customers in BC

 Accept purchase orders (including by telephone, mail, email or Internet) for taxable goods from customers located in BC

 Deliver taxable goods to a location in BC, (this includes goods you ship physically or electronically, even if you deliver the goods through a third party, such as a courier)

 Solicit persons in BC (through advertising or other means, including mail, email, fax, newspaper or the Internet) for orders to purchase taxable goods"

and the definition of "regularly" is?

[pjcdn2005]

I have no idea how they define regularly but unless you are specifically soliciting / advertising to buyers in those provinces you don't have to register. If you are selling on a site like ebay you aren't specifically soliciting them as you are advertising worldwide.  That's mentioned in post 8 and probably other posts as well.

[rose-dee]

Except that the BC bulletin does include email, so if a seller is sending newsletters, etc. each month to people on their eBay subscriber's list, this could fall into that category.  An eBay store isn't the same as an independent website in that regard, and of course eBay itself advertises everywhere too, so it's not a cut-and-dried situation. 

"Solicit persons in BC (through advertising or other means, including mail, email, fax, newspaper or the Internet) for orders to purchase taxable goods"

I don't know what sort of sales volume the OP has, or how they conduct their marketing, but obviously that will determine how important this factor is.  As I suggested earlier, the best way for the OP to be certain is to contact the B.C. government and ask, rather than attempting to parse the text of the bulletin or make assumptions about what terms such as "regularly" really mean to the BC government.  The bulletin is really only an informational reference point.  I wouldn't hesitate to phone, that's what the contact line is there for, and I think the OP will find them very helpful.