eBay

quikelectriks · ‎01-11-2005

Couple quick questions about how this works. I've cleared items through customs several times on items sent via UPS. Now I was informed that if I'm doing this quite abit I need to register my business or something. This would also allow me to be refunded for the tax and shipping expenses that I pay on incoming items as I understand it. Now I filled out a form with the city for a home based business and have submitted it, but is there anything else I need to do? Soryr, I'm really new to this.
Thanks in advance..

shoplineca · ‎01-11-2005

You register your business with the Federal Government obtaining a BIN (Business Identification Number). Basically the number given is used for GST and Import/Export (addition of some letters to describe which is which).

Start here and register your business: http://www.cra-arc.gc.ca/tax/business/topics/bn/menu-e.html

This will explain what you need and how to get it online.

Unless you are selling locally on a frequent basis, from your house you dont really need to register with your own municipality.

Malcolm

javax.swing · ‎01-11-2005

If you register for input tax credits (GST and PST in Ontario) it means you must charge taxes to Canadian buyers. I'll pull up the thread in which I asked something similar on one of the public boards.

javax.swing · ‎01-11-2005

http://forums.ebay.ca/thread.jsp?forum=13&thread=100015372

quikelectriks · ‎01-17-2005

thanks for the help

so if i go ahead and do this i won't have to pay tax on supplies i have coming into canada but do i get reimbursed for shipping costs? also would i have to then claim everything i sell with income tax? i only sell to the states, never within canada so can't charge gst on anything
thanks again

javax.swing · ‎01-17-2005

Why would you get reimbursed for shipping costs? The only thing you get credited back is GST and PST on items for resale, and GST for business supplies. If your market is mainly US, you're technically still charging tax but since exports are zero rated there is nothing to collect.

And of course, any business income becomes taxable on your income tax.

quikelectriks · ‎01-24-2005

thanks for the help, i have since registered and have a import/export account
now what types of things can i claim for gst refund? business supplies, computer equipments, vehicle expenses, and import/export shipping tax?

javax.swing · ‎01-24-2005

You signed up not knowing what the benefits were? I'll bet used car salesmen love you. 🙂

http://www.cra-arc.gc.ca/tax/business/topics/gsthst/menu-e.html

That should help you out, specifically the input tax credit section. The CCRA puts out some other publications as well you'd be well advised to read.

What this means now that you're registered though is that you must *COLLECT AND REMITE* GST on *ALL* your sales to Canadian buyers. Also because you're running a business, if you're in Ontario, you must apply for a Vendor's Permit and charge and remit PST as well. For PST you'll only get credit for goods for resale and nothing else (no business supplies, etc).