Results 1 to 12 of 12

Thread: Canadian Taxes

  1. #1
    Join Date
    Jan 2004
    Location
    Ontario, Canada
    Posts
    2,270

    Canadian Taxes

    I double posted so I am changing this one....

    Do those of you who are based in Canada have it so that people in your province or within the country pay tax? If so how do you go about doing this?
    Greg Lubbelinkhof

  2. #2
    Join Date
    Sep 2002
    Location
    Western Canada
    Posts
    1,889
    Negative

  3. #3
    Join Date
    Mar 2003
    Location
    Edmonton, Canada
    Posts
    380
    I charge Canadians GST. It is the law. My billing software now allows for it and automatically charges Canadians the 7% GST.
    Glen Millar
    Tyger Hosting Services
    http://www.tygerhosting.com
    Affordable Direct Admin Linux Hosting Since 2003

  4. #4
    Join Date
    Jul 2003
    Location
    Satyr, Chrisalya, Canada
    Posts
    1,901
    What About The 0%-8% PST?
    --

  5. #5
    Join Date
    Mar 2003
    Location
    Edmonton, Canada
    Posts
    380
    I'm in Alberta...no PST
    Glen Millar
    Tyger Hosting Services
    http://www.tygerhosting.com
    Affordable Direct Admin Linux Hosting Since 2003

  6. #6
    Join Date
    Sep 2003
    Location
    Saskatchewan, Canada
    Posts
    946
    Info on the GST

    Goods and Services Tax (GST)
    The Goods and Service Tax (GST) is a tax that applies at a rate of seven percent (7%) to the supply of most goods and services in Canada. All businesses, exceeding a gross yearly revenue of more than $30,000 must register for the GST at Canada Revenue Agency (CRA). If yearly revenue is less than $30,000 registration is optional; however, it may be beneficial to register anyway, depending on the nature of the business. If you do not register, you will not charge GST to your customers but neither will you be able to apply for a refund on the GST you pay on your business purchases. Mandatory registration required for persons who operate a taxi or limousine service. CRA frequently offers a free workshop that provides general information to help you apply GST. Topics include handling the administrative aspects of GST and completing a GST return. http://www.cra-arc.gc.ca/events/menu-e.html or http://www.cbsc.org/sask/whats_new.cfm

    and in most provinces for the PST to apply it has to be for a good not a service.

  7. #7
    Join Date
    Oct 2002
    Location
    Canada
    Posts
    3,103

    Re: Canadian Taxes

    Originally posted by hometownhosting
    I double posted so I am changing this one....

    Do those of you who are based in Canada have it so that people in your province or within the country pay tax? If so how do you go about doing this?
    Couple different ways to go about this. If you are canadian bussines and if you are registered to collect GST (eventualy they will warn you that you should register ), then you have to charge it to any canadian sales. If you are selling something to someone in the same province as you are then you have to collect PST as well. But, if you use third US based party to collect your payments, like 2co, then there is no need to charge any taxes as you are technicly selling your stuff to 2co, and 2co is selling it to your clients.

  8. #8
    Join Date
    Nov 2003
    Location
    on the 'net
    Posts
    1,187
    Originally posted by iTec Hosts
    My billing software now allows for it and automatically charges Canadians the 7% GST.
    Hoo boy - I've been looking for that billing software. What is it called!

  9. #9
    Join Date
    Nov 2003
    Location
    on the 'net
    Posts
    1,187

    Re: Re: Canadian Taxes

    Originally posted by sasha
    If you are selling something to someone in the same province as you are then you have to collect PST as well.
    Actually it depends on what you are selling. Most "internet services" are PST exempt. See: http://www.trd.fin.gov.on.ca/userfil.../Rsie_Ib03.htm

    But, if you use third US based party to collect your payments, like 2co, then there is no need to charge any taxes as you are technicly selling your stuff to 2co, and 2co is selling it to your clients.
    That sounds very shady. I am sure Revenue Canada wouldn't see it that way. As one of your competitors in Canada who is required to and does charge GST I find this objectionable.

    Have you asked CCRA for an official ruling on this "loophole"?

    Can you defend your practices if someone calls the snitch line?

  10. #10
    Join Date
    Mar 2004
    Location
    Vancouver Island, BC
    Posts
    173
    We charge GST to Canadian clients only, we are in BC so we have the 7.5% PST to deal with also, however we do not charge the PST to our clients inside or outside of BC. Our accountant checked with Victoria on this one and it was really a cloudy issue concerning PST so they recommended we didn't bother charging it.

    I notice my fellow BC hosts are a mixed bag too, some are charging PST on everything while others aren't. The only time I have been charging PST is when I sell some computer hardware or physically work on a computer which is taxable (any service done on a physical products apparently).

    ModernBill handles the GST just fine once you setup the tax zones. You also need to adjust the percentage for the HST in the Maritimes.

    Also, keep in mind if you remain under $30,000 gross each year you do not have to register for a GST number and do not have to charge it, but if you do go over and haven't been charging it you may get stung with paying during times you weren't charging it.

    Just make sure you keep a receipt for everything and get a bookkeeper or accountant sooner rather than later, it will help big time and they can also better explain some rules for you.
    Dynanet Network Services - 206-607-9075
    We Do Hosting - Established May 2001
    http://www.dynanet.ca/

  11. #11
    Join Date
    Nov 2003
    Location
    on the 'net
    Posts
    1,187
    Originally posted by Dynanet
    Also, keep in mind if you remain under $30,000 gross each year you do not have to register for a GST number and do not have to charge it...
    And that's $30,000 gross Worldwide sales. Not many people know that!

  12. #12
    Join Date
    Mar 2003
    Location
    Edmonton, Canada
    Posts
    380
    The latest version of ClientExec has a area for doing sale tax. You can enter the sales tax so that if a person indicates they live in Canada on the signup form, they are automatically charged sales tax. You can also setup a seperate sales tax for the province you are in as well.

    In regards to the registering for GST, if you do register for GST, then you can claim any GST you payout for your business against the GST you receive. Buy a vehicle for business purposes, and you can claim the GST on the first $24,000.00 of the purchase price.
    Glen Millar
    Tyger Hosting Services
    http://www.tygerhosting.com
    Affordable Direct Admin Linux Hosting Since 2003

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •