Paying taxes on your orders is always an annoyances especially when you have to pay HST. Here is something you might not know when it comes to paying taxes when you purchase out of province.
First and foremost, when you are physically in the province and placing an order, you are required to pay the taxes based on what the provincial tax is (which we all know). But when you place an order that is out of province you are only required to pay the taxes based on where you are ordering from.
For example: If you place an order from a site that is located in British Columbia and it is being shipped from British Columbia and you placed the order from Alberta, you are only required to pay the GST which is 5%, not the HST (12%). So if you place an order from a site that is located in Alberta and you are ordering from British Columbia, you are required to pay the taxes based on the province that you are located, which would be HST.
This is great news for provinces whose taxes are GST/PST, but not so cool for those provinces who have HST. In the end, it really does effect everyone no matter which province you are located in. You always have to make sure your are charging the correct amount tax and that you paying the right amount as well. Double check everything!
Sales Tax for Canada:
- British Columbia: 12% HST
- Ontario: 13% HST
- Newfoundland & Labrador: 13% HST
- New Brunswick: 13% HST
- Nova Scotia: 15% HST
- Alberta, Saskatchewan, Mantioba, Prince Edward Island & Quebec: 5% GST