Are you registered with GST/HST?
If not, you CANNOT collect/remit GST or HST.
If you are registered with GST/HST, you will have received a guide from CRA giving details of what to charge and remit.
In general terms, if the item is taxable, you need to remit HST (rate varies by province) for HST provinces and 5% GST for non-HST provinces (QC, MB, SK, AB and the Territories). In BC you are now involved with both GST and PST.
Now, some items (books for example) do not attract the PST protion of HST in most provinces. In such instances, only 5% GST is remitted.
GST or HST (whichever applies) must be remitted on the total amount of the invoice, including shipping and handling charge, at the same rate as the taxable item(s).
As always, I strongly recommed you consult a competent accountant experienced with mail order business.
"charge him with their 5% PST"
There is NO PST in Alberta. It is irrelevant to you if there was.
"Hows that work."
Once again, read the information sent to you by the federal government at times of your GST/HST registration.
As stated earlier, for GST provinces (Alberta for example) you only remit 5% GST on taxable transactions. If the shirt was $100 with free shipping, GST would be $5.00; if the shirt sold for $100 and $10 shipping, GST would be $5.50 (5% of $110)
Once again, please consult a competent accountant experienced in mail order business.
GST/HST registration implies you sell $30,000+ a year. You can afford the professional advise needed.
By the way, let me stress that it does not matter if you collect the tax or not: your liability is to remit the tax, whether you charged it or not.
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