Tax Question

[ujr1867]

Do you charge tax based on the shipping address or the billing address?

i.e. If a customer in Ontario buys an item, but has it shipped to a relative in New York, do we charge the Ontario tax rate (13% HST) or no tax at all because it is going out of the country?

Thanks.

[coxengines]

If you charge CA taxes they are charged relevant to delivery address.

No taxes to deliveries outside of Canada.

Bernie

[pierrelebel]

"no tax at all because it is going out of the country"

That is correct BUT a seller must be careful to be able to prove where the item was delivered in case of tax audit.

In the good old days, to avoid paying PST, or a higher level of GST/HST, many transactions falsely indicated shipping to an address out of province or out of country.
The taxman got wiser and started asking for proof of shipment/delivery where an invoice indicated a local billing address and an out-of-province or out-of-country shipping adress.