eBay

universal-solder · ‎06-13-2016

I try to find an answer which program is best for online sellers in Canada? Because neither Intuit nor Sage give any information if their products are capable to handle different PST accounts for evey province. What are you guys using and why?

pierrelebel · ‎06-13-2016

"capable to handle different PST accounts for evey province. "

???

Could you please elaborate. Do you have locations in several provinces? or are you thinking about the GST/HST?

Your listings do not show you charging GST/HST to Canadian buyers. Are you GST/HST registered? Do you add GST/HST to your Canadian buyers invoices.

Are you looking for a program that will also do invoicing or just record keeping to help prepare your income tax return?

How many transactions do you have or plan to have every month? Are you working in US$, Cdn$ or both?

universal-solder · ‎06-13-2016

Its just about record keeping. I have a PST/GST account in SK and as far as I know do I need to deal separatelt with every province, collect PST and forward it. I'm new to Canada but I used to prepare all my taxes without an accountant as a business owner for about 20 years back in Germany. I know it is completely different here in CA but I'm sure I can make.

But I don't know which program is really made for the Canadian market. As far I read on CRA website I do have to apply for a PST/HST tax number from every province I ship to. And I don't have the time to try every product, that's why I'm asking for an advice.

I want to work only with CAD but I'm going to ship to more countries than only CA and US.

It is possible that eBay didn't change some of my oldest items to tax calculation, I need to check this. Tax is usually added for customers in Canada and definitely has to.

Thank you.

pierrelebel · ‎06-13-2016

" collect PST and forward it."

NO. It does not work that way.

If you are GST/HST registered, you need to remit GST/HST collected from Canadians in all provinces and territories based on the rate charged for each province. If registered in SK, you also need to remit PST (only) to SK.

I suggest you spend some time with a competent accountant, preferably experienced in mail order, to get to know and understand the tax rules.

There is no point in acquiring an accounting system until then.

Do you know that you do NOT need to be GST/HST registered if your annual revenues is less than $30,000?

universal-solder · ‎06-13-2016

Thank you for your advice. This is what the government owned Canada Business Network says:

-------------------------------------
If you sell goods and services to residents of Alberta, Nunavut, Northwest Territories or the Yukon, you are required to collect GST.

When you sell to HST-participating provinces (Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia and Ontario), you are required to collect HST in the amount applicable to the province and include it in your GST/HST return. In this case, since you are already registered for GST, you are automatically registered for HST, even if you do not operate in an HST-participating province.

You are required to register to collect PST if you regularly ... Sell taxable goods to customers in BC

If you sell taxable goods and services to residents of Manitoba, you are required to register under the Retail Sales Tax Act and collect retail sales tax, if all of the following apply:
    You solicit sales in Manitoba (via advertising or other means).
    You accept orders originating in Manitoba.
    The taxable goods are for consumption/use in Manitoba — not for resale.
    You cause the taxable goods to be delivered to Manitoba, regardless of who pays for the delivery.

You must register to collect and remit the Quebec sales tax (QST) only when you have operation in the province, when you hire an employee and/or when you have an address in Quebec. Otherwise, you are not obligated to collect QST on behalf of the province if you sell taxable goods and services to residents of Quebec.
--------------------------------------

This is what I understand:
- I have to charge GST to my customers living in Alberta, Nunavut, Northwest Territories or the Yukon.

- I have to charge HST to my customers living in Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia and Ontario.

- I have to charge PST and GST to my customers living in BC.

- I have to charge only GST to my customers living in Manitoba and Quebec.

- I have to charge PST and GST to my customers living in SK (because my business is located there)

It is pretty confusing and maybe I didn't understand the whole thing when I read it the first time. As I see now, I don't have to charge everything to all of my customers, only GST or HST for Alberta, Nunavut, Northwest Territories, Yukon, Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Quebec. And GTS + PST only applies to sales to customers in BC and SK. I need to update my tax rule only for Quebec as far I can see. And I need to register for PST for BC.

It was my decicion to register for sales tax. I know about the 30k limit.

Thank you for your help so far, please hep me to find an answer to my initial question. I have to collect sales taxes I have to remit to SK from almost every customer, but I obviously will need an additional accounts for BC (PST). A software product also must be capable to show GST, HST, PST for SK and PST for BC. PST for SK and BC needs to be separated, it means the program must have different accounts for that. I don't know anything about the book keeping and accounting software tools on the Canadian market. But I was used to work with Quickbooks and Lexware in Germany for over 20 years. That's why I asked. Unfortunately it's not that simple as in Germany anymore (only 1 tax position for everybody and everything).

pierrelebel · ‎06-13-2016

" I have to remit to SK from almost every customer, but I obviously will need an additional accounts for BC (PST)"

NO. NO. NO and NO. You clearly do not understand the rules.

I do not mean to be blunt but you must take the time to consult an accountant specializing in GST/HST and preferably with experience in mail order business.

Reading the GST/HST website without prior business and tax knowledge does not help as you cannot put those words in the proper context.

For example, as a GST/HST registered seller did you know you MUST - by law - give an invoice or receipt to your Canadian customers from whom you collect GST or HST

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/itc-cti/nvc-eng.html

That is the law!

Take the time to consult an expert. This is your business and an accountant is a necessary expense unless of have prior knowledge.

"It was my decision to register for sales tax"

I get that. The question is : do you really need to? Do your annual revenues from the business exceed $30,000?

Good Luck

michaelbb2 · ‎06-14-2016

I also sell from within Saskatchewan. The rules are quite simple..

If you sell more than $30,000 globally, you need to remit GST/HST for all sales that you make in Canadian provinces/territories only.

If you sell more than $10,000 in Saskatchewan only....then you need to remit PST for Saskatchewan sales only. Do not collect or remit PST for any other province but Sask. I am GST/HST registered but not PST registered.

Use an excel spreadsheet to do your own bookkeeping.....

cumos55 · ‎06-14-2016

It is also important for all sellers on eBay that

If your

sales plus postage, worldwide

is more than $30,000 each year... you must register with the Canada Revenue Agency (CRA)...to collect GST/HST.

Before you register with CRA... you must register locally in your province to obtain a business number...

pierrelebel · ‎06-14-2016

"...is more than $30,000 each year...."

The key point to remember here - and I have noticed over the years many posters who misunderstood that number - is that if your business revenues exceed Cdn$ 30,000 you must register with GST/HST (similar but slightly different rules exists in Quebec).

Cdn$ 30,000 represents your worldwide "business revenues".

If you have employment income of $25,000 a year and "business revenues" of $10,000 (for example) you do not need to register with GST/HST

universal-solder · ‎06-14-2016

Back to my original posting: I will absolutely exceed 30k, eBay is just one channel I started 4 weeks ago and not the major part of the business. And because I realized already, that I only have to charge GST or HST for all Canadians and additional PST only in SK, my daubts about the right software are gone.

pierrelebel · ‎06-14-2016

I still recommend you discuss your situation with a competent accountant, specializing in HST/GST and experienced in mail order business and your personal circumstances.

Your understanding of taxes has changed a lot in one day. You may still be missing a lot. Do you know how to calculate your income tax on your mail order business (eBay and elsewhere)? There is no point in guessing or gambling when the resources are there.

Now - as you start your business - is the best time to learn how to set up your books properly.

Good Luck