posted on February 16, 2004 08:12:56 PM
I need some help with sales tax and Vendio for Canada. We had to register for both GST and PST because our sales were above the limit. BUT, Canada Post charges GST and HST (depending on province) for shipping. Anyone out there have an idea how to handle this easily? I would really appreciate some tips.
posted on February 18, 2004 12:37:37 PM
Hello fellow Canadian, I have thought about this question for a couple of days to no avail. How about selling with no tax/tax included, i.e. raise your overall prices to include Taxes, and say NO TAXES in your ads, depending on your situation this should only increase your costs by about 3% and avoid the H.S.T. altogether as you are only liable for the G.S.T. component. unless you sell in province, but that is probably a small portion of your sales. p.s. sorry if this doesnt make sense but we are talking about tax law.
posted on February 18, 2004 01:04:59 PM
It's doubtful that Vendio could incorporate the Canadian taxes into the programming because taxable goods and rates vary from province to province.
Perhaps mention in your auctions that for Canadians taxes are extra and then send them the correct amounts after the auction or include it into your costs.
..and, i hope you dont mind, but i c/pasted first two ppghs..
GST, or goods and services tax, is a 7% tax which is charged on most goods and services in Canada. In Nova Scotia, New Brunswick and Newfoundland and Labrador, the GST has been "harmonized" with the provincial sales tax, to become HST. HST is charged at the rate of 15%.
Any business which is registered to collect GST/HST will be able to recover any GST/HST paid on purchases made in the course of their commercial activities, by claiming "input tax credits" when filing their GST returns
end c/paste
posted on February 18, 2004 03:05:31 PM
I may be way off base here, but any sales you make through eBay (and any income you receive therefore) that are made to a bidder OUTSIDE of Canada, and where you are shipping that item OUTSIDE of Canada, well those sales are not charged GST, or more clearly stated are 'zero-GST rated' sales.
If your overall income within Canada is over $30,000, then for sure you have to charge GST, or bite the bullet and eat it, but would be responsible for paying it to the gov, or paying the higher HST on those sales for the HST-registered provinces. Kind of a nightmare for sure for a very small business-person.
That's my understanding of things, anyway, but best advice is to consult with a licensed Canadian tax specialist.
