mailman2

I phoned my local business service center for tax information today, i was running out of time (had to go to work) when I said, i plan to sell online to the US and Canada, which tax accounts must i register for? From what i remember from his response... it sounded like i must register and collect province/state tax for every different province/state i sell to... that seems like a hell of a lot of paper work, let alone trying to figure out a way to do that with my 2checkout shopping cart! Did I just miss understand? Because Ive ordered things online before and the price displayed is the price i pay regardless of where im from (plus shipping of course).. does anyone know how if I can legally include tax in the first and final price?

 

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jdr8271

I think it differs from state to state.

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pocketjacks

I live in Florida and only have to charge tax on items I sell to people in Florida.

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Shuffy

I Live in Florida also . . I only collect sale tax on florida residents
. . if the buyers are from out of state and purchase something from my shop,
they get taxed regardless . . HOWEVER I give me them a price break on the item . .

Diane

 

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pocketjacks

I just charge one price and then reduce the cost of the item for the ones I sell to people in florida after the sale.

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sarafina

People outside of Canada are exempt from taxes.

People inside of Canada (non Ontario) get charged the 7% GST rate.

Additionally the ones who live in Ontario get charged 8% PST as well as 7% GST.

You need to have a GST and PST (also known as ontario retail sales tax) number to collect and remit taxes for the government. You need a vendors permit to get a PST number. Having a PST number is good because you can also be exempt from paying PST when you buy supplies for your business.

One important thing to note is that you are not required to collect GST/PST on behalf of the government if you're doing less than $30,000/year in business. You can however volunteer to do so if you'd like.

Also, the government doesn't care how you collect, they care how you remit. Example. You sell a t-shirt for $10 + $1.5 pst,gst included. You don't have to break it apart. You can simply sell it as $11.50. Now when you report to the government, obviously you say you sold a $10 shirt and thus you only owe them $1.50 in taxes.

Hope that helps.....

 

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Twinge

AFAIK, you only need to charge sales tax for sales made in (shipped to) the same state you are operating out of. I live in Colorado and only charge tax on people living in Colorado.

I've heard about other taxation ideas and bills relating to taxing online sales more (i.e., not just in your state) being passed around the legislative, but I do not think anything has been decided yet.

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