Sales Tax (1.Viewing)

rlm

rlmrlm is verified member.

Bonfire.ca
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I assume most domainers don't do enough sales to require a GST#, but there must be some of you here that do. I know I've been doing it forever basically. So if you collect & remit GST/HST, I wouldn't mind having a chat. Please PM or Email me.
 
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I definitely charge sales tax but I am a sole proprietor so I lump the HST inflows and outflows from my online stores and domaining accounts together. It is seamless because I often use the domains to redirect traffic so I write renewals off as an advertising expense and submit everything together.

I do not charge HST on my .com out of country sales but everything else inside of Canada is taxable.
 
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MapleDots said:
I often use the domains to redirect traffic so I write renewals off as an advertising expense and submit everything together.
Click to expand...

Interesting twist indeed. But in your case, it would make sense, since you have a heavy online presence/income to justify. But ITC is what most others get.
 
I just wanted to add here....

With the .ca rules Revenue Canada has a clear cut reason to assure you charge sales tax. All sales of .ca require a Canadian presence therefore ALL sales of .ca domains should have sales tax charged on the sale.

The only exception is if a domainer sells less than $30k per year in which case they do not need to charge nor collect sales tax.

Sales tax can be your best friend because everybody is used to paying it and if you collect it you can claim all the sales tax from the renewals back. That is a significant portion and when you consider that you can now claim back the sales tax for your office chair purchase and such it becomes a no brainer. Sales tax collection saves the business money because you can claim all business expenses where you have had to pay sales tax, even things like utilities, internet etc.
 
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Hmm just wrote a reply, clicked "like" on another post and my reply disappeared.

I mostly earn revenue/income from consulting and most of the customers are in other countries. That means I don't charge GST/QST for those, but still need to be registered and also get refunds (and audits, because refund>dues).

For sales in Quebec, my business charges GST+QST, for combined provinces HST and for the others just GST.
 
FM said:
For sales in Quebec, my business charges GST+QST, for combined provinces HST and for the others just GST.
Click to expand...

In Ontario you only charge 5% sales tax to Quebec, my online stores are set up for each province and out of province selling into quebec is 5%.


Here is a quick chart of what I charge per province


Picture0009.png
 
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Do you have a BC warehouse you ship from? If not, I believe you're overcharging tax in BC. BC went to 12% HST temporarily a while back, but it promptly got removed. So for like 2 years it was indeed 12% HST in BC, but now its back to 5% GST + 7% PST. So its like Quebec - there is no HST. Just GST. Unless of course you have BC based operations. Also note that even if you're local, the 7% PST doesn't apply to domains either.
 
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rlm said:
Do you have a BC warehouse you ship from? If not, I believe you're overcharging tax in BC. BC went to 12% HST temporarily a while back, but it promptly got removed. So for like 2 years it was indeed 12% HST in BC, but now its back to 5% GST + 7% PST. So its like Quebec - there is no HST. Just GST. Unless of course you have BC based operations. Also note that even if you're local, the 7% PST doesn't apply to domains either.
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I was just going to ask the same thing. We charge 5% for BC and Sask.
 
taxes.png
 
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I pay for a service that handles the taxes and according to them...

The sales tax for Quebec is handled differently - they use a different setup from us 5%

Alberta only has one sales tax so only 5% applies

They said BC is chargeable at 12%

My software provider has a service that automatically adds the taxes depending on the province you are in.


Picture0010.png



According to them I have to charge 12% and they specialize in regional tax laws.
 
MapleDots said:
I have engaged redirect and that should fix that issue.
Everytime you post you will get a redirect notice for 1-2 seconds allowing the script to finish.
Click to expand...

Thank you.
 
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