Web Hosting Talk







View Full Version : Taxes and Canada


Eric
03-26-2001, 05:12 PM
Hi, is there a special permit or something that we must have here in Canada to resell web space? i will start as a reseller, and hopefully move to dedicated server ( at least i wish ;) ), but do i have to charge taxes to my customers? I assume since most of my clients should be americans that i don't have to charge THEM canadians taxes, but what about for canadians clients? I would like to have more info or even a website about that.

Thanks, Eric

Rehan
03-26-2001, 05:21 PM
Here's some good info from CCRA (formerly Revenue Canada):
http://www.ccra-adrc.gc.ca/E/pub/tg/rc4070ed/rc40702-e.html#Sole proprietorship

And this is another site with excellent content:
http://www.businessgateway.ca/


Good luck!
Rehan

NMCB
03-27-2001, 08:05 AM
Don't forget to register for a GST number. You don't need to collect it (from Canadian clients) if your revenue is under a certain amount, but if you collect GST, then you get reimbursed for your own GST expenses.

NetRemedy
03-27-2001, 09:45 AM
G.S.T - Goods and Services Tax

Our understanding is that if your business makes less than $30,000.00 Canadian per year, your do not need to register for a GST number or charge GST on Sales.


P.S.T. - Provincial Sale Tax

As web hosting is a service and not actual goods, you do not have to charge P.S.T. If you were selling cd roms, computers etc, then you would have to charge as these are tangeable products.

We would suggest however, that you consult with your accountant to verify the above information. :)

Eric
03-27-2001, 02:13 PM
Ok thanks all, i'll look in these sites.