Registering for GST/HST...

[biglittleape]

I need to register for HST to start collecting it for the few Canadian sales I get, 95% are outside of Canada.

One of the questions on the application is "Actual annual worldwide and domestic GST/HST taxable sales" followed by "Actual annual domestic GST/HST taxable sales"

I get the second question which would be the total sales in Canada so all would be GST/HST taxable.  But the first question, how can worldwide sales be GST/HST taxable?

[femmefan1946]

Since your sales here seem to be well under the $30K de minimus, I suspect you have either another ID or a B&M store.

Speak to your company's accountant about this.

If you are not grossing the $30K minimum required before registering, keep careful records but don't do anything until you do hit that minimum.

EBay and SK will be collecting provincial sales tax starting later this year, but all we will be doing about that is paying a slightly raised FVF - eBay's fee on processing the payment, not the tax itself.

I suspect the overseas sales question is for tax credits on items purchased (with tax) in Canada and sold outside Canada.

Some businesses who export a lot actually make money on GST tax credits.

Speak to your accountant, not strangers on the internet.

Free advice is worth every penny you pay for it.

[biglittleape]

Yes I sell on eBay under a different ID and will be over 30k CAD in overall gross sales, 95% of my sales go out of the country.

My question stands, what does "Actual annual worldwide and domestic GST/HST taxable sales" mean?  The wording is strange, how can "worldwide" sales be GST/HST taxable?

[hlmacdon]

When you file a GST return your sales get broken out into taxable sales (ie domestic) and non-taxable sales (ie international). Some years ago those numbers were not split out, which would lead to some questions about why some might be claiming a large credit with little tax collected. 

[recped · Accepted solution]

You may be misintereting this sentance.

"Actual annual worldwide and domestic GST/HST taxable sales"

Actual worldwide means your total sales International and domestic

AND

Your total domestic sales that are taxable

You are reading it as "annual worldwide taxable sales" but that is not what they are asking for. They want two numbers but the first would be the sum of both while the second is just the taxable domestic sales.

The question is really only designed to produce a result that will determine your reporting period.

For example if you have a Million in total worldwide sale but only $1000 in domestic sales you can probably get annual reporting. On the other hand if your total sales are $100,000 and 90% of that is domestic taxable you will be required to do quarterly reporting.

[biglittleape]

OK that makes more sense.

[cumos55]

A seller must register to collect GST/HST if their total for sales... PLUS ... postage is more than $30,000 each year.  A buyer pays the seller the total for sale plus postage....  Postage becomes a part of the seller's cost, because it is the seller that pays the postage

eBay collects GST/HST on all fees, and remits that to the Canada Revenue Agency..   This amount becomes a part of the Input Tax Credit (ITC).... and... if this total for ITC  is higher than the total for GST/HST collected by a seller for sales plus postage,  then a seller will get a refund.

The best thing to do is contact a Tax accountant, specifically  someone who understands internet sales

[biglittleape]

So eBay will automatically send the collected GST/HST to CRA?  I thought they didn't do that in Canada yet, this would be nice not having to deal with it.

[richardcm]

eBay sends the GST/HST on the eBay fees only because eBay provides a service to a seller using their platform. They do not collect GST/HST for a seller sales. A seller must do that if they are required to collect them.

Read post 7 again. It says on eBay fees. 

[ilikehockeyjerseys]

Keep in mind I am not an accountant, this is based on my personal experiences, and you should seek the advice of an actual accountant. 

If I was doing 95 percent of sales outside of the country, I would voluntarily register for HST/GST regardless of my total sales. It is my understanding that if you are registered for HST/GST, you can claim input tax credits (the HST you paid) on your supplies for conducting business. When you export an item, you are not required to charge GST/HST to the customer because they are in a different country. The result would most likely be that you will end up with a refund. 

Again, I would make an appointment with an accountant and run this all by them. Depending on the complexity of your business, I doubt you will need the continued support of an accountant. They can at least point you in the right direction so that you can get your HST setup and be confident that you are tracking things properly.