RST Forms - Does shipping count as part of sales?

[lovebuguniverse]

I'm doing my first RST form and for total sales I'm wondering if shipping fees we charge are included?

The reason I ask is because I have to charge tax on shipping within Ontario.

Also, how does everyone keep their records for the tax man? Do you print the sales records in ebay and then total them all up or do you use software each time you get a sale?

Ive just been printing the sales records up (since I have some people pay by money order) and then doing a simple excel sheet with - username, sale date, # of items sold, Subtotal, shipping charge, cost of items, actual shipping cost and then at the end of the month I calculate the profit after figuring my monthly ebay/paypal fees and packaging fees.

Do you think I'm doing it the hard way?

[fatdane]

The last time I spoke with an Ontario Sales Tax type they wanted all sales included in the gross sales figure - even it it was a PST exempt sale outside the province, and if you charged tax on the shipping then the shipping is included as a part of the gross sales. What the Ontrio Tax people wants seems to change in roughly 15 to 20 year cycles so they may have changed.

If audited by the Provincial Tax people they seem to look at whether or not you were buying tax free using a PST exemption certificate, and the using tax free goods personally. This must be the area where they can produce more $ for their gold plated fringe benefits.

[dipmicro]

or not you were buying tax free using a PST exemption certificate, and the using tax free goods personally

It should not matter if for personal or business use, final consumer must pay PST. That's why we need to pay PST on shipping supplies unless we are in business of reselling them.

[ampurtle]

Use the invoice total, the amount being paid to you. ie Gross Sales. speaking of gross sales.... 😜

Don't forget to claim the GST paid on shipping as an input credit on your GST return.

I'm not sure what the current requirements are for that, but the auditors usually like to see that pile of hard copy invoices so they can thumb through them at random.

If you are doing more than 1000.oo a week, you should be investing in accounting software and an integrated inventory/sales application. Surely there must be some reasonably priced options by now that support eBay sales as well...

If eSales is your primary income, then you should be looking at a far more encompassing system like the one Henry's uses.

[pierrelebel]

"Use the invoice total, the amount being paid to you. ie Gross Sales"

That is incorrect in most instances when dealing with Ontario sales tax since the gross amount includes GST which is NOT taxable provincially in Ontario. .

[ampurtle]

Yes, before the tax for OPST, bad choice of description on my part 😛

"Line 1 Total Sales
Enter your total sales (rounded to the nearest dollar). You must include all taxable and non-taxable sales of goods and services that you made from Ontario locations. If you have locations outside Ontario, you must also include sales made from those locations into Ontario. Do not include GST or RST. If you have no sales to report, you must still file your return. Simply enter 0 on Line 1."


Shipping is a service, which you sold and charged for, so it's part of your total sales.