Do I work the taxes into the selling price?

I was told not to collect the sales tax in Canada, so do I calculate the sales tax into the selling price?

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Do I work the taxes into the selling price?

Are you registered to collect and remit taxes?

If you are not, don't.

Revenue Canada gets twitchy about that.

 

If you are registered, you can decide not to add tax to your items as long as you remit the correct amount to the HST/GST/PST offices.

Adding Canadian taxes to the selling price is one method, but that means you are also inflating the cost to buyers in other provinces and countries. This may make your items higher than market price.

 

What percentage of your items sell in your own province? In Canada?

 

It would make no sense to add 15% to all your asking prices if only 2% of your sales are to your province.

 

But remember that you also get tax credits when items on which you paid Canadian sales taxes are sold as exports.

Discuss this with your tax accountant.

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