I know this isn't official, but if anybody here has figured this out, please pass it on.

I offer a few different services.

Custom Web Development + Hosting (Reselling)
Templated Based Websites on a Yearly Subscription
A piece of software I sell on CD

Right now I charge GST on everything and PST on the software (since it is tangible).

Should I be charging PST on anything else?

I know the PST would only be charged to people in Ontario, but my understanding was PST is only charged on tangible items. Am I wrong?

Also, if I'm paying PST+GST on the hosting I buy to resell (which I am), so I still charge both when I resell? I have a feeling I shouldn't be paying tax when I buy the hosting in the first place since I'm collecting tax when I resell it... even though I end up making more than what I bought it for.

I'm quite confused.

Different provinces have different PST tax laws. In BC, PST must be collected on telecommunication services (ie. hosting). So it wouldn't matter if you bought a plan to resell and charge tax on...the people selling you the plan would have to collect it as well.

Again, different provinces = different tax laws, you should ask an accountant.

As for the GST, you are right to collect it on everything. However, you are only required to collect it when you reach $30k per annum in sales.

Why don't you just do the simplest and most accurate thing and call, or even go into, your local PST office. You don't have to give your name, and if you are really paranoid you can call from a phone booth. I have found them very helpful explaining the details of things. There is also a lot of stuff on their website which they can point to.

Tim