why must I charge GST if annual sales will be under $30,000.00

[regy86]

Why must I charge GST if annual sales will be under $30,00.00?

[ypdc_dennis · Accepted solution]

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@regy86 wrote:

Why must I charge GST if annual sales will be under $30,000.00?

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Who told you need to charge GST?

You collecting GST is optional if the previous 4 calendar quarters (12 months) period has sales under $30000 (including shipping). If over, you are required to register for GST.

This, by the way, has nothing to do with eBay collecting GST on eBay fees.

If you are GST registered, the GST paid to eBay becomes an Input-Tax-Credit that is subtracted from the GST you collect from your buyers. Otherwise, it is just another selling expense.

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[femmefan1946 · Accepted solution]

Is this a buying ID? You have no listings and no selling FB.

If you have a B&M business and are planning to expand into online selling, you add your online sales to your B&M sales.

Don't forget the tax credits you get on your export sales!

If you are not registered to collect sales taxes (GST/PST/HST/QST) don't even think about it until you pass that $30K level.

Revenue Canada gets annoyed with businesses that collect taxes without remitting them.

If you do expand into online selling, worry about shipping first.

Shipping is waaaay harder than taxes.

And if you have not already, sign up with Canada Post for a Small Business Solutions discount postage card.

You can print off shipping labels through either SnapShip or Shippo and get those discounts.

There are also several freight forwarders who will ship for you through USPS. It's not convenient for me, but chitchat express is the name that many sellers mention.

[cumos55]

If your total for sales ... plus.... shipping is over $30,00 you must register to collect GST/HST.

The important consideration is the fact that eBay now charges GST/HST/QST on a seller's fees.

If you are not registered to collect GST/HST....  This charge of tax on fees becomes a cost

Look at how much GST/HST buyers will pay... and then you subtract the tax on fees, which is defined as an input tax credit.

If  sales are mainly to the US than the tax  paid on eBay fees  might be partially refunded

Lots of things to consider.....

[cumos55]

Sales plus shipping is over $30,000

Left out a zero.....