Sales Tax - actual rules from CRA
- Thread starter Western Metal Inc
- Start date
Exact. Anyways, to collect and remit sales tax, you need a provincial tax number. Here in Quebec, if you don't have any permanent establishment ( store, sellors who are autorized to contract in your name, etc), you acannot obtain that number.
So yes, it's not only the common practice, it's the law not to collect tax on those sales.
See the post where it shows Rule #1 about dealing with the CRS.
The store has lots to loose to shave the tax, better to ask for a discount equal to the tax being charged, but that doesn't work so well for the retailer internet retailer or fixed door retailer, they have overhead to pay.
Rob
I think 10 years ago the proper rules for collecting taxes on internet sales wasn't well understood. In recent years a large number of the dealers on here have started charging tax based on the province of the buyer to avoid issues with the tax man. Some still don't. And its probably only a matter of time before the CRA catches up to them...
It pretty much boils down to who collects the taxes. In every provinces except Quebec, the feds collects the sales taxes, and transfer the provincial part to the pov gvt. In Quebec, the provincial gvt collects the taxes, and then tranfers the fed part to the fed gvt. The obvious result is that all other 9 provinces can't collect for Quebec. Until there's some kind of provincial-federal agreement, that won't happen. Until then, every online retailer in the ROC is happy to give Quebecers a built-in 10% off. Quebec's Justin-bootlicking liberal gvt would never return the favor though, so don't expect the same tax break (meanwhile, starting an online business is a sure recipe for bankrupcy).
The sad thing is that the federal shouldn't even be collecting sales taxes. In any province. If any premier grew a pair, his province would be collecting their own taxes (sales, income, corporate) and forwarding somme moolah in ottawa.
The sad thing is that the federal shouldn't even be collecting sales taxes. In any province. If any premier grew a pair, his province would be collecting their own taxes (sales, income, corporate) and forwarding somme moolah in ottawa.
Except in Canada, power lies with the federal gov't, and they dictate what the provinces get authority over.
bcbravo2zero
CGN Regular
Got it. Thanks.
NO, NO , NO. I personally stood on a street corner in the rain and snow and collected enough signatures in BC to repeal the HST.
The PST was reinstated and is collected by the province, NOT the feds.
This was the only repeal in BC history to succeed. We did NOT want to lose control of what is and what isn't taxed.
Please understand that BC does not want businesses to collect for products sold to a customer residing in other provinces, unless the tax is a Federal tax (HST), or some other minor exceptions..
So which registration number do you put on your invoices when you charge bc PST? Hope it's not just your HST number.
By the way, the CRA has ZERO say in the administration of provincial taxes... And if you got your information from their help line there is a 50% chance they gave you wrong information.
Do yourself and your customers a favour and go see a properly qualified tax accountant. I can recommend one in your area if you need
Last edited:
There are also penalties for businesses that do not remit provincial sales taxes on time, and the time frame changes depending on the amount of sales per annum. I can't imagine trying to juggle tax collection for multiple provinces as well as federal tax, each with different reporting timelines. Someone mentioned something about a reciprocal tax agreement between BC and Alberta, but from the BC Gov themselves:
"However, you generally do not charge PST if you arrange for the goods to be shipped or delivered to a location outside B.C."
Source: http://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/faqs
My recommendation is to call a tax accountant on this one so you have the peace of mind - a junior tax manger of any local mid-size accounting firm ( doesn't need to the big guys like Ey and PWC )should know this like the back of their hands and give you a quick answer over the phone.
I do not think the CRA person on the phone is correct at all. I won't give it any weight unless I hear it from the "real" CRA workers who have 3 letters of CPA attached to their business cards.
I do not think the CRA person on the phone is correct at all. I won't give it any weight unless I hear it from the "real" CRA workers who have 3 letters of CPA attached to their business cards.
Maybe a little off the subject maybe not. What is the rule for PST and GST. Example Say I pay PST on $50.00 purchase and GST on the same amount. how is it suppose to work? Do I pay the say 5% on PST and GST on the total $50.00+5% or just on the $50.00.
so in other words am I paying Tax on a Tax?
so in other words am I paying Tax on a Tax?
You shouldn't be paying tax on tax.
Well technically we are, considering all income we make is already taxed, then we get taxed again when using said income.......
certain provincial taxes can cascade...but it tends to apply only to very specific taxes. Premium taxes for example, do cascade in certain arrangements.
Cascading taxes are sometimes built into the price as well (since there may be no requirement to show them separately on the bill) so you'd never know it.
RE: Rule #1, Don't mess with CRA
Does CRA collect provincial taxes. Seems like the province collects that.
If CRA collects provincial taxes, then sends that blood money to the province then for sure charge PST.
If CRA only collects GST/HST then rule #1 is fulfill by charging only GST/HST leaving provinces to hunt down their own piece of the flesh.
Hopefully WM will be advice to save their effort to collect taxes for the wasteful provinces. Bet many of us are reluctant to buy from WM due to PST.
Does CRA collect provincial taxes. Seems like the province collects that.
If CRA collects provincial taxes, then sends that blood money to the province then for sure charge PST.
If CRA only collects GST/HST then rule #1 is fulfill by charging only GST/HST leaving provinces to hunt down their own piece of the flesh.
Hopefully WM will be advice to save their effort to collect taxes for the wasteful provinces. Bet many of us are reluctant to buy from WM due to PST.
People mess with the CRA all the time...and many of them win in tax court. The CRA makes #### up. I can tell you that from personal experience. UNless you're talking to someone high up, they have no clue what the law says.
That's why it's better to consult a tax accountant instead of the cra
Last edited:
