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View Full Version : Sell to another province. What taxes do I charge?



Canadian Bodybuilding
01-04-2008, 08:19 PM
If I sell an item to someone in another province, what taxes do I charge them? If I buy from another province for my business, what taxes should I get charged?

bigdaddydrew123
01-04-2008, 10:12 PM
years ago you paid taxes based on where you lived or had that option . friend of mine was stationed out west but bought stereo stuff in nb so he got the cheaper tax from out west. but this was 20 years ago.might want to check with prov tax people

Preacher
01-04-2008, 11:15 PM
Generally speaking, a vendor should register to collect the PST of another province if they have a business presence (e.g. office, salespeople) in that province. If the vendor does not have a business presence in a province to which they are shipping, it is usually the responsibility of the buyer of the goods to remit the provincial sales tax.

leeroy
02-04-2008, 10:51 AM
So, as a business, if I would buy my inventory from another province, they wouldn't charge me PST. It's my responsiblity to remit the pst to my province. And when I resell to another province, I let the end buyer take care of it. It's a little strange as I would be paying but the end user may not pay it. I know when I buy something that isn't under a business from another province, example books, supplements, etc. I never remit my pst in my province and they never charge me it.

leeroy
02-04-2008, 10:58 AM
So logically, if one is to do business of buying goods from other provinces, it would be make very good business sense to open up an office in Alberta if you look at the tax rates of each province.

Gettin'r'round
25-04-2008, 09:55 AM
For retail sales if someone buys something from you they pay the gst/pst (or simply HST). If you ship them something across provincial lines 5% GST REGARDLESS. Ship stuff to the US, nothing.

If you are buying stuff for resale, you don't pay PST but GST. You then take all the GST you've collected from sales minus what you paid (inventory, rent, basically EVERYTHING) and you either remit the difference to the CCRA or you get a GST refund. You should only get a refund when you start up as costs > sales. When the GST was first sent up a few dudes scammed the gov't by claiming huge refunds. But they got caught eventually, duh.

bigben
25-04-2008, 11:00 AM
In Manitoba, the law is that you have to remit provincial sales tax on your out of province purchases that you bring into the province. For the average citizen, its simply impossible for them to know, unless its a licenced vehicle, aircraft, boat, etc. For a business, you run the risk of being caught. You'd better check your retail sales tax act of your province.