Charging taxes online (CANADA)

Canada Government requires that you should charge GST and /or HST which is a combined GST and PST amount. Check with the government what tax applicable in each of the ten provinces.

GST is applicable to all sales in all the provinces as this is the federal tax. Provinces charge differently.

When we sell on line, we collect GST from all the sales, and add these to the selling price and on Visa collect the price+tax. We have had no problems so far.

Credit cards do not collect tax separately as a separate item.

I hope this helps you.

Thanks Sadru.

So, does the website designer create tabs to change the province in order to charge the approriate tax?

What about charging taxes to customers out of CAN?

If your business is in Canada in a particular province, you should charge if applicable only those taxes that are appropriate for that province in Canada.

e.g. A business in British columbia will apply taxes that are appropriate in that province and will not worry about what taxes are applicable in Ontario or Saskatchewan or Alberta.

Sadru Kassam said:

If your business is in Canada in a particular province, you should charge if applicable only those taxes that are appropriate for that province in Canada.

e.g. A business in British columbia will apply taxes that are appropriate in that province and will not worry about what taxes are applicable in Ontario or Saskatchewan or Alberta.

Click to expand...

Wrong......If you are a registrant for GST/HST you must collect what ever the rate is for the province you are shipping the order to....

What province are you in?...Some provinces still have PST to deal with.....

Just curious.. I've been searching all week about receiving orders from the states. Every time I find something on the subject is always skips the part about sending to the states, lol. Can anybody clarify this for me? I have the Canadian tax laws all sorted out, but what about receiving orders from the states through my online website? Also, more importantly, is there anything I have to register in order to sell/ship to the states?

If you are shipping from Canada to the US, you do not have to collect any taxes.....

that's kind of what I was thinking. What about doing business with the states? If I have my business registered in Canada, do I have to do anything else, or am I open to freely accept orders from, and ship to, the states? Or do I have to get some kind of permit or anything at all?

Just ship away.....But do not worry too much about US orders....By the time you add in shipping and exchange, you probably will not get too many....

But if you are in a location where you can go across and ship, it changes things....Then you have to make inquiries with US agencies to ask what the rules are....

I think that's where I confused myself. I got carried away and started reading about cutting costs on shipping to the states by getting an EIN and LLC and all that jibber jabber before I really understood the basics of running the business within Canada.