Sales Tax (1 Viewing)

rlm · Feb 3, 2021

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.

MapleDots · Feb 3, 2021

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.

Eby · Feb 4, 2021

MapleDots said:
I often use the domains to redirect traffic so I write renewals off as an advertising expense and submit everything together.

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.

MapleDots · Feb 4, 2021

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.

Eby · Feb 4, 2021

Makes total sense

FM · Feb 4, 2021

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.

MapleDots · Feb 4, 2021

FM said:
Hmm just wrote a reply, clicked "like" on another post and my reply disappeared.

If that ever happens just hit the back browser button and it will come back for you, then click post again.
That is a rare technical glitch that I am working on fixing.

MapleDots · Feb 4, 2021

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

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

rlm · Feb 4, 2021

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.

aactive · Feb 4, 2021

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.

I was just going to ask the same thing. We charge 5% for BC and Sask.

aactive · Feb 4, 2021

Eby · Feb 4, 2021

aactive said:
I was just going to ask the same thing. We charge 5% for BC and Sask.

I thought as much too.

MapleDots · Feb 4, 2021

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.

According to them I have to charge 12% and they specialize in regional tax laws.

MapleDots · Feb 4, 2021

Link to above

https://www.thebalancesmb.com/charging-provincial-sales-taxes-on-online-sales-2948448

Link to BC Taxes

https://www.thebalancesmb.com/does-your-business-need-to-register-for-bc-pst-2948446

MapleDots · Feb 4, 2021

FM said:
Hmm just wrote a reply, clicked "like" on another post and my reply disappeared.

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.

FM · Feb 11, 2021

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.

Thank you.

Sales Tax (1 Viewing)

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