I urge all sellers and would be sellers (located in Ontario) to invest the time to review the Retail Sales Tax Act of Ontario:
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_2491_1.html
Sellers (and would be sellers) residing in other provinces should do the same with their respective provincial government sales tax department websites.
All Canadian sellers (and would be sellers) should also invest the time to learn about the advantage of registering for GST/HST by visiting the GST website:
http://www.cra-arc.gc.ca/tax/business/topics/gsthst/menu-e.html
For more useful tips, please take a look at tax information for small business in Canada:
http://sbinfocanada.about.com/od/gsthst/index_a.htm
Finally, do yourself a favour and read all of it, not bits and pices here and there. Do not select a sentence out-of-context because you like what it states.
To understand the tax system is part of doing business in Canada. If you want to sell on eBay (other than selling personal used goods) you are in fact becoming a small business. To understand the system will save you money and time on the long run.
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_2491_1.html
Sellers (and would be sellers) residing in other provinces should do the same with their respective provincial government sales tax department websites.
All Canadian sellers (and would be sellers) should also invest the time to learn about the advantage of registering for GST/HST by visiting the GST website:
http://www.cra-arc.gc.ca/tax/business/topics/gsthst/menu-e.html
For more useful tips, please take a look at tax information for small business in Canada:
http://sbinfocanada.about.com/od/gsthst/index_a.htm
Finally, do yourself a favour and read all of it, not bits and pices here and there. Do not select a sentence out-of-context because you like what it states.
To understand the tax system is part of doing business in Canada. If you want to sell on eBay (other than selling personal used goods) you are in fact becoming a small business. To understand the system will save you money and time on the long run.
" A lot of confusion in this area and I would appreciate your help. "
I most strongly recommend you consult a competent tax advisor and accountant to guide you through the tax registration process and setting up your bookkeeping for tax purposes.
I most strongly recommend you consult a competent tax advisor and accountant to guide you through the tax registration process and setting up your bookkeeping for tax purposes.
You should check with your local authorities.
In general terms, most municipalities do NOT require a municipal permit unless you bring buyers to your home.
In general terms, most municipalities do NOT require a municipal permit unless you bring buyers to your home.
You can even claim Input Tax Credit for the GST paid on the portion of utilities used for your business. It all adds up.
For example, if 15% of your home is used exclusively for your business, you can deduct 15% of mortgage interest (or rent), propery tax, gas, electricity, internet service, etc... from the profit generated by your online business (you cannot create or increase a business loss by deducting a portion of your home expenses for income tax purposes).
The same for gasoline. If you can segregate the portion used for business (going to Post Office or buy inventory/supplies for example), the GST paid on that expense can become ITC.
Etc... etc... etc...
It is important to really know and understand the rules. Consult a competent tax advisor to guide you through.
I filed my Annual GST/HST report electronically first week of May and had a cheque within two weeks. These guys are efficient!
For example, if 15% of your home is used exclusively for your business, you can deduct 15% of mortgage interest (or rent), propery tax, gas, electricity, internet service, etc... from the profit generated by your online business (you cannot create or increase a business loss by deducting a portion of your home expenses for income tax purposes).
The same for gasoline. If you can segregate the portion used for business (going to Post Office or buy inventory/supplies for example), the GST paid on that expense can become ITC.
Etc... etc... etc...
It is important to really know and understand the rules. Consult a competent tax advisor to guide you through.
I filed my Annual GST/HST report electronically first week of May and had a cheque within two weeks. These guys are efficient!
These guys are efficient!
I mailed mine in on Apr. 13, and they're still sitting on it - a $124 refund - I should charge them interest! X-(
I mailed mine in on Apr. 13, and they're still sitting on it - a $124 refund - I should charge them interest! X-(
"mailed"
Did you write "mailed"?
Is it your first refund?
Did you write "mailed"?
Is it your first refund?
yes, I mailed it - yes, it was the first return. I called them the end of May and they were still "reviewing" it.
Meanwhile, I got my next quarter return form yesterday - I think I'll tell them I'm "reviewing" it. 😉
Meanwhile, I got my next quarter return form yesterday - I think I'll tell them I'm "reviewing" it. 😉
It is quite normal for them to "review" the first return if a refund is requested.
Generally, most businesses need to remit GST/HST and enclose a cheque with their return.
The only GST/HST registered sellers requesting refunds are generally those involved in export (or starting a new business, building inventory prior to sales).
The extent of the review depends on the amount requested. For a few hundred dollars, it should be quick and painless. Once you get to the four digit refunds every year, expect an annual phone call or visit from your friendly tax auditor.
Generally, most businesses need to remit GST/HST and enclose a cheque with their return.
The only GST/HST registered sellers requesting refunds are generally those involved in export (or starting a new business, building inventory prior to sales).
The extent of the review depends on the amount requested. For a few hundred dollars, it should be quick and painless. Once you get to the four digit refunds every year, expect an annual phone call or visit from your friendly tax auditor.
"my next quarter return form yesterday.. "
Ask them to change that to yearly' it is less trouble and it is money in the bank.
The timing of getting a GST/HST refund (April/May) coincides with the need to send the income tax folks a cheque. Nice to have some "savings". 😉
Ask them to change that to yearly' it is less trouble and it is money in the bank.
The timing of getting a GST/HST refund (April/May) coincides with the need to send the income tax folks a cheque. Nice to have some "savings". 😉
Maybe I'll give them another call - it's a very small form with few numbers on it - I don't know what the heck they can be "reviewing"! It's not like there's pages of papework to look at! Oh well...
"don't know what the heck they can be "reviewing"! "
For a first return asking for a refund: most likely matching the information against the income tax return.
For a first return asking for a refund: most likely matching the information against the income tax return.
most likely matching the information against the income tax return
There is no income tax return - my first quarter was from mid February, to the end of March. So my sales won't be on a tax return until next year, when I do my 2005 taxes.
There is no income tax return - my first quarter was from mid February, to the end of March. So my sales won't be on a tax return until next year, when I do my 2005 taxes.
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