PST in ebay.ca

[slickglass09-5]

Hi,

I just started my small business in ebay.ca and my physical location is in BC. Around 15% of my product are sold all over the Canada and the rest is sold to American.

Recently, I got a question about PST (Provincial Sales tax) and made a call to BC PST service.

My question is whether I need to open PST account for my ebay business that my product is sold all over Canada and other countries?

They didn’t know e-business very much, but they confirmed that if the buyer is in BC, I need to open PST account.  However, they don’t know PST about other provinces and counties.

Does it mean that I need to open PST accounts for each province?

Moreover, how about the PST for other countries?

So could someone help me figure the PST in ebay.ca under my situation?

Many thanks

[cumos55]

My province is Manitoba.

If I sell more than $10,000 in Canadian dollars  to Manitoba buyers  then I have to register to collect and remit PST.

I sell books, which are not taxable with PST.....as a Point of Sale rebate..... So I have not registered to collect PST.... 

If I do sell something other than a book  to a Manitoba buyer, I do not have to collect PST.... My total for items other than books is not over $10,000 annually.

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My understanding is that a seller collects PST, as per rules for that seller's home province.

 For me in Manitoba  I have to sell more than $10,000 total  in items where PST is applied before I must register to collect PST...  that is ... only if it is sales for items other than books

I have never collected PST for other GST provinces..

For other provinces where it is GST  and PST separate....  then specific rules apply to each of these provinces.with respect to PST

Now when it is an HST province,  everything changes  and the rules become Canada Revenue Agency rules....  and a seller must register to collect GST/HST if sales plus postage worldwide are more than $30,000 each year..

Each seller must collect PST based  on rules that are for that seller's home province.  ... These are the GST provinces

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I sell books that are not PST taxable in any province.  Books are exempt from the provincial component of HST.

I am not registered to collect PST in Manitoba because I sell books which are PST exempt, and sales are not over $10,00o each year for items, non-book items,  where PST is applied. .

I am registered to collect GST/HST because sales plus postage worldwide are greater than $30,000 each year

[Anonymous]

You can charge PST for BC only, you cannot charge PST for other provinces.

[ricarmic]

Much has been written on this in the past.

Here is a link to a thread with much very useful information:

https://community.ebay.ca/t5/Seller-Central/GST-HST-PST-and-INCOME-TAX-for-eBay-Sellers/m-p/280593#M...  

As Pierre advises, I can't emphasize enough the value of getting advice (at least) from a professional accountant.

[ypdc_dennis]

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@slickglass09-5 wrote:

Moreover, how about the PST for other countries?

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Buyer is responsible for any VAT, duty and other charges when they import their purchase.

You do not collect GST or PST for out of country sales.

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[femmefan1946]

They didn’t know e-business very much, but they confirmed that if the buyer is in BC, I need to open PST account.  

If you don't already have a sales tax license, the question becomes how much do you have to sell before remitting taxes becomes mandatory?

Cuomo says it is $10,000 annually in Manitoba. I seem to recall it is $30,000 annually in Ontario. Going only by your feedback , it doesn't look as if your eBay sales are anywhere near that de minimus number.

Call BC back and ask that question instead.

And don't collect taxes unless you have the proper registration. The revenuers get touchy about that.

Also. Some provinces don't care if you don't collect tax as a line item, as long as you are remitting the equivalent to them. That is, you can charge all your customers the same price, then remit a percentage from your in-province sales IF you are registered.

And from that percentage you can deduct both tax paid for your products and credits for international sales. 

But for exact information on this, consult a real tax accountant who has experience with exported goods.