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Canadian Taxes - GST/HST
Good morning, quick question for our fellow Canadians. Do you charge GST or HST on your sales to purchasers in Canada? (I know BO has to charge on any revenue they collect from Sellers, this is normal practice in the business world which inturn you would input this as an ITC credit). Also, If you are not collecting the GST on your Sales, are you still registered with GST, and do you claim ITC credits?
Thank you, inadvance for all your inputs, most appreciated! Gracey
Thank you, inadvance for all your inputs, most appreciated! Gracey
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This is a very simplified/generalized TL;DR of the page, but you're required to register for GST/HST and collect it the first month once you surpass $30K in 4 consecutive quarters (not based on a calendar year). This includes all revenue from all sources related to selling LEGO (like if you sell on FB, etc... and includes amounts collected for shipping).
You can also voluntarily register at any time before hitting that threshold.
Your last question about sellers who do not collect GST/HST on sales, but are still registered and are claiming ITCs... you must still remit GST/HST even if you did not collect it. So you need to still track the totals you collects for all sales/shipping etc for each province and their tax rate, and then use a tax inclusive calculator to figure out how much you would owe. I won't get into the quick method as that has a bunch of other complexities related to it.
For example, say you do quarterly remittances and you made $1000 sales to Ontario (13%), $5000 to 5% GST provinces, and $500 to 15% HST Maritimes provs. These were the amounts you charged without taxes to the customer. It would look a bit like this at GST/HST time:
ON:
Net Amount (excluding tax)$884.96
Tax (13.0%)$115.04
Gross Amount (including tax)$1,000.00
5% GST provs:
Net Amount (excluding tax)$4,761.90
Tax (5.0%)$238.10
Gross Amount (including tax)$5,000.00
15% HST provs:
Net Amount (excluding tax)$434.78
Tax (15.0%)$65.22
Gross Amount (including tax)$500.00
Your total owing for that quarter would be $418.36, less what you're claiming via ITCs.
I collect GST/HST as I was required to by the CRA (I didn't voluntarily register beforehand, but that's something you can decide if you want to do as it can be beneficial as well).
If ever you have any questions please feel free to send me a message directly; I'm awful at keeping track of the forums
You answered all my questions! Thank you for taking the time out of your day to do so. Most appreciated!
Gracey