Paying Taxes On Your Order (continuation)

After phones calls and reading site after site, I have discovered another interesting point when it comes to paying taxes on your order. Everything that I have mentioned in a previous post about paying taxes is all correct; the only thing that will make a difference is the final destination of your order.

Regardless of where you are located (the province of which you reside), ultimately in the end, the tax you pay on your order is solely based on the location of where the goods end up.

  • Example: If you reside in Quebec and have placed an order from a business that is located in British Columbia, but the shipment is being sent to Ontario, you are required to pay taxes based on Ontario (which is 13% HST).

Pretty straight forward and completely understandable; so make sure you are being charged the correct amount, which will make your accountants life much easier.



Paying Taxes on your Order

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

http://www.rev.gov.bc.ca/documents_library/notices/HST_Notice_007.pdf

Tel: 1.800.959.8287 (GST/HST)



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