Some Clarification on GST / PST On Sales in US Dollars

[cool-belt-buckles-shop]

WHAT HAPPENS TO GST/PST WHEN YOU SELL TO THE US IN US DOLLARS FROM CANADA AND A CANADIAN PERSON BOUGHT IT IN US DOLLARS INSTEAD OF CANADIAN DOLLARS. HOW WOULD YOU CHARGE GST/PST?

[mirakbiz_inc]

I charge under the same rules, then I convert to Canadian $ for reporting purposes. GST and PST are calculated as % regardless of the currency

[jakeeangel]

Yep. That's what I do for PST.

[ospreylinks]

Exactly.... does matter what currency is used, if goods remain within Canada then GST is applicable and if within Ontario then PST...

If I sell something for $10.00 US including freight and will be paid in US$, I will invoice $11.50 US including sales taxes.

Heck, if they paid with Canadian Tire money, I would still be charging GST and PST if goods remain within Canada and Ontario.

Jeff

[sportsdepotonline]

I am a little off subject here, but a couple of years ago I was selling a lot of hockey equipment to the USA, went to do my income tax and filed a claim for all the gst I PAID, on the hockey equipment and got a GST refund of 3000.00

[ospreylinks]

Yes, you got an input credit.... GST is an in out entry. Unlike PST, even if you resell, you pay GST on the goods you buy and use in your enterprise, (input credit) and collect GST on goods sold within Canada.

Now if you sell outside of the country, you don't collect GST on the sale, but you still get the input credit on the GST you paid on the original inventory for resale.

So yes, you may end up getting a refund on the GST you paid if you did not collect enough GST to offset, due to non-tax sales, etc.

Jeff