SOLD MyMaple.ca - $5000 CAD + Sales Tax Discussion (1.Viewing)

This domain has been sold for $5000 CAD + HST via MapleDots Lander

Do you charge hst on all your sales?

No, only where mandated, the amount is adjusted depending on province, this sale was in Ontario so 13% was added to the total as per Ontario sales tax rules.

Each province varies slightly and I use this handy calculator to determine the rate:






GST/HST calculator (and rates) - Canada.ca


Sales outside of Canada are excluded and you do not charge sales tax on those sales.

PS: A shortcut to the sales tax calculator can always be found at: Domain Name Tools

It is under the Payment Tools section

Congratulations

great little tool, congrats

Congrats!

Congratulations @MapleDots!

congrats on the sale, but have you found any instances where linking to dn.ca from the lander is counter-productive? The appraisal tools and all of the wholesale pricing discussions here can work against you. In this case, there are no good appraisals even close to the sale price. I'm just thinking that could have come back to bite you - and I prefer to use that kind of information very selectively.

My sales are consistently higher on my Landers because they link back to DN.ca, combined with the email address it makes it comfortable for a guest to communicate with me. I can explain appraisals and what the value of a domain really is.

For instance...

You cannot say on an Atom lander that if you are a business the entire amount of the purchase is deductible as an advertising expense on your taxes. You cannot say that the domain is available only because you held it and paid renewals all these years. You cannot say appraisals are approximate and cannot take into consideration the increase in business a memorable address will bring. An Atom lander cannot tell the client that it's ok to ask questions and if they need any more information they can join the conversations on our market place.

PS. Opening offer on the domain was $250 from my inquiry form to which I did not respond. It was only after a second email offering $350 asking why I did not respond that I stated I traditionally don't respond to offers under $1000. From there on the emails went on for almost 2 months moving up to 2k with friendly banter back and forth. I never rushed the client and was polite explaining the value of an incredible keyword combined with the word my.

So no, at no point in time do I feel my own lander or the link back to my marketplace was detrimental, in fact it created value and instant trust, the client paid the entire amount before the domain was released because he knew who I was instead of being behind a blind lander.

Like always I issued a formal MapleDots invoice with the amount due which I then revised as paid once the funds cleared and the domain successfully transferred.

I know the end use of the domain and the site is currently in beta. I think they have picked a good domain to assist with their project.

Keep an eye on it, it's bound to resolve in the near future.

MapleDots said:

My sales are consistently higher on my Landers because they link back to DN.ca, combined with the email address it makes it comfortable for a guest to communicate with me. I can explain appraisals and what the value of a domain really is.

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I agree with and do almost all of that as well. I just like being in control of the narrative.

I really like domians that start with “My” especially if it’s often used in everyday conversation, like my home, my pet, my vacation…

Since a .ca has Canadian presence requirements, does that not mean every .ca sale is subject to gst/hst? so even if a company outside Canada buys a .ca it’s for its Canadian branch and gst must be charged? With other extensions non Canadian buyers don’t get charged the tax.

domains said:

Since a .ca has Canadian presence requirements, does that not mean every .ca sale is subject to gst/hst? so even if a company outside Canada buys a .ca it’s for its Canadian branch and gst must be charged? With other extensions non Canadian buyers don’t get charged the tax.

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I don't follow up on any of that, if the address of the end user (the one I put on my invoice) is outside of Canada then I do not charge HST.
So in other words, if the funds come from an international transfer/source and I am given an international address then my responsibility with HST collection ends there.

In most cases any HST exemption is for my .com sales anyways, most .ca's I've sold have been inside of Canada. The few that have not been I base it mostly on where the funds come from, that is always a big indicator.

I don't see a lot of domainers charging/collecting sales tax because most of them just dabble in an occasional sale. I know the times I have dealt with Excellent Domains they are a stickler with sales tax as all legitimate Domaining businesses are.

Footnote...

Sales tax keeps the riff raff out of TBR because the non legitimate domainers cannot claim back the sales tax making their purchases 13% (or so) more expensive. Those of us with sales tax accounts simply claim it back and it is a wash. So if I bid $1000 it ends up costing me $1000. A domainers dabbling will pay $1,113 making his cost higher.

That does not sound like a lot until you get to 10k where it can make a $1,113 difference in your purchase price.

I have a domainers friend who does not charge/collect sales tax and he tracks all the sales tax he pays out and then adds it up. So if he spends 3k on sales tax over the year he will deduct that from his profit when he claims a sale on his taxes.

I guess that's another way of doing it but technically if you get over 30k per year you should open a sales tax account.

MapleDots said:

Footnote...

Sales tax keeps the riff raff out of TBR because the non legitimate domainers cannot claim back the sales tax making their purchases 13% (or so) more expensive. Those of us with sales tax accounts simply claim it back and it is a wash. So if I bid $1000 it ends up costing me $1000. A domainers dabbling will pay $1,113 making his cost higher.

That does not sound like a lot until you get to 10k where it can make a $1,113 difference in your purchase price.

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I think you meant $1,130 (instead of $1,113) in both paragraphs.

Ideally, all provinces would switch to HST (perhaps at different rates), instead of some provinces having their own separate sales taxes (e.g. BC, Quebec). I'm not going to register in those provinces, if a prospective counterparty is located there......they can incorporate an entity in Ontario. As governments work to reduce interprovincial trade barriers, this should be one of their priorities, as there's just too much paperwork.

GeorgeK said:

I think you meant $1,130 (instead of $1,113) in both paragraphs.

Ideally, all provinces would switch to HST (perhaps at different rates), instead of some provinces having their own separate sales taxes (e.g. BC, Quebec). I'm not going to register in those provinces, if a prospective counterparty is located there......they can incorporate an entity in Ontario. As governments work to reduce interprovincial trade barriers, this should be one of their priorities, as there's just too much paperwork.

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Even if you did, BC PST doesn't apply to domain sales.

If you want to see another MY domain in use check out

MyRed.ca