Last updated: 11 Aug 2014
I found this link very interesting on what is expected of business regarding taxes. Sellers beware, do your homework.
I just found another interesting website regarding charging taxes. Click here.
Click here to read the entire article, which I strongly recommend, or read the excerpt below:
Online Sales: Which Taxes Do You Collect for Each Province?
In sum, as an online retailer accepting and shipping orders across Canada, the list of taxes you should be collecting and remitting on your online sales currently looks like this:
BC – HST 12% (Note that BC will return to a PST system of 5% GST and 7% PST April 1, 2013: see the BC Government’s Return to PST website for more information.)
Alberta – GST 5%
Saskatchewan – GST 5% & PST 5% voluntarily (unless is home province)
Manitoba – GST 5% & PST 7%
Ontario – HST – 13%
Quebec – GST 5% & QST (Quebec Sales Tax) 9.5% (Note that as of January 1, 2013, the QST rate will be 9.975%, but will no longer be charged on GST. This results in no change to the total tax.)
New Brunswick – HST 13%
Nova Scotia – HST 15%
Newfoundland & Labrador – HST 13%
Prince Edward Island – GST 5% & PST 10% voluntarily (unless is home province)
Northwest Territories – GST 5%
Nunavut – GST 5%
Yukon – GST 5%
B.C. – HST
Alberta – GST
Saskatchewan – GST & PST voluntarily (unless is home province)
Manitoba – GST & PST
Ontario – HST
Quebec – QST
New Brunswick – HST
Nova Scotia – HST
Newfoundland & Labrador – HST
Prince Edward Island – GST & PST voluntarily (unless is home province)
Northwest Territories – GST
Nunavut – GST
Yukon – GST
(*In your home province, registration for PST/RST is mandatory if you are selling taxable goods and/or services.)
This means that you should register as a Provincial Sales Tax Vendor with each of the provinces you will be doing business with and will be expected to collect and remit the sales tax accordingly.
What can you do to get around all this additional paperwork and bookkeeping related to your online sales? Not much. Some Canadian-based online businesses limit the areas they ship to. An Ontario based business, for instance, might only accept orders from and ship to customers in Ontario. Others only sell non-taxable goods and/or services.
The online sales picture is further complicated by the fact that goods and/or services that may be tax-exempt in one province may be treated differently in another. So take all the information above as a guide only and be sure to check with the Finance/Revenue Ministries of the individual provinces to ascertain whether or not you have to collect and remit provincial tax when you are shipping to customers who reside there. There are links to these in the Provincial Sales Tax section of this website. When it comes to taxes, you can’t afford to be wrong.