Web Hosting Talk







View Full Version : Tax Implications


Icutwo
07-23-2002, 10:00 PM
A scenerio:

1) What is the tax requirement if a webhost (W) has a server/s in state: (A) and a client (C) living in the same state purchases web hosting from him?

2) What if that same webhost (W) has an office in another state and or country and that office then sells the webhosting to client (C) how does this affect taxation?

:eek:

NyteOwl
07-25-2002, 12:25 PM
This would probably vary based on where (state and country) you have your business located and registered.

For my situation the location of the server is irrelevant. What is relevant is the location of the client who receives the service, in relation to my business location.

1) client from within same province: GST + PST
2) client from out of province but within country: GST only
3) client from out of country: nothing

If I have an office/operation in more than one province then for each such province, situation (1) above applies regardless of which province head office is in.

example:

business registered in NS with office in ON.

client in NS pays GST+PST
client in ON pays GST+PST
client in BC pays GST
client in USA pays nothing

Icutwo
07-26-2002, 01:39 AM
Thanks,... The info you supplied makes sense. Obviously, there are not too many hosts out there that are accountants or accountants that are hosts! :eek:

Once again..thankyou :)