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| Province | Sales Tax Rate | Also charge sales tax on S & H |
 | ||
| ||
| ||
| Alberta (AB): | 5% |
| British Columbia (BC): | 5% |
| Manitoba (MB): | 5% |
| New Brunswick (NB): | 15% |
| Newfoundland and Labrador (NL): | 15% |
| Northwest Territories (NT): | 5% |
| Nova Scotia (NS): | 15% |
| Nunavut (NU): | 5% |
| Ontario (ON): | 13% |
| Prince Edward Island (PE): | 15% |
| Quebec (QC): | 14.975% |
| Saskatchewan (SK): | 5% |
| Yukon (YT): | 5% |
"Buyers always pay the GST or HST.."
That may be the case most of the times but not all the times.
Like many other GST/HST registered sellers with a large percentage of sales outside Canada, I did not charge GST/HST to any of my Canadian eBay buyers. Period. It was not included in my prices.
The tax that was absorbed was a marketing expense, part of the cost of doing business. The same is true for "gifts" I included with all shipments for about twelve years. They were a "marketing cost", part of the cost of doing business.
Now, one could say that all costs paid by sellers are eventually recovered in one form or another from buyers. That is correct. But let's try to keep taxes properly accounted for.
Life is complicated enough as it is without adding complications by changing definitions.
" I see that as a gain of $1600, not as a loss of $200. "
That is basically what it is all about!
GST/HST registration pays, in many instances, even if the seller absorbs the tax on Canadian buyers.
"... I could claim that small loss..."
The problem, the way I see it, is your misuse of the word "loss". There is no loss.
For example if you buy an item for $10 + 15% HST (your total cost $11.50) and sell it to a buyer outside Canada for $20, you make a profit of $8.50 (not bad!)
If you are GST/HST registered, you buy the same item for $10 (forget the tax since you get it all back as ITC), sell the item for $20, you now make a profit of $10 (better than $8.50)
So, for 80%-90% of your sales - made outside Canada - you end up ahead since you get back all the HST you paid on your purchases and expenses while not having to remit any on your export sales.
For the 10%-20% of your sales to Canadian buyers, the situation is different of course, but there is no "loss". You still make a profit when selling your item for $20. There is a slightly smaller profit if you absorb the tax on the item when sold to a Canadian buyer.
It is that simple.
PS - You may want to contact CRA and ask if you can make a retroactive claim on HST already paid on purchases made earlier this year.
"Pierre's comments above have completely clarified my situation, thank you. "
Thank you for your kind words but they appear to be undeserved.
"I might even be able to claim that cost somehow. If anything, I'd be concerned about CRA seeing that as double-dipping. "
That comment tells me I did not do such a great job explaining it.
There is no "cost" (or no "loss"). For tax purposes there is NOTHING to claim.
If GST/HST registered, on on hand you make a profit of $10 on exports and a smaller profit on Canadian sales by absorbing the GST/HST payable. Either way you make a profit. There is nothing else to "claim". There is no "double dipping".
Only profit. And there is nothing wrong with that.
Since you ship from Ontario - not Quebec - you should contact CRA, not Revenue Quebec.
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