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Canadian Ecommerce Site - Need Info on GST/PST


sinryder

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hello guys i have an ecommerce site in Canada, Toronto selling apparel items. I ship worldwide and only charge tax within Canada 15% in Ontario and 7% rest of Canada. 95% of my sales are outside of Canada so i charge very little tax.

 

my business is registered as sole proprietorship , already have a business bank account , GST, PST number.

 

well i received this letter from Canada Customs and Revenue Agency saying i have overdue returns that i have to file. ( if you do not have taxable sales, tax credits, or rebates that apply to filling period return the form by entering zeros on the appropriate lines.)

now if my sales gets

 

i went to an accountant and he asked me to provide him all this

 

1) Record of foreign buyers, order invoices

2) Record of local buyers, order invoices

3) bank statement

4) imports/purchases vouchers of the expenditures ( and material )

 

 

i have the bank statement and importing records , but have no idea how i can get the other info.

 

like the local buyers, foreign buyers , invoices to calculate the GST stuff. I have all the records/orders on site but how do i show all this to the accountant.

 

Another thing do i really need an accountant to do all this stuff, I mean cant I do all this myself . He said he will charge $100 every month to do GST returns pst and inc tax returns. Is this

 

any information is greatly appreciated

 

thankyou

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What you need to do is "do this yourself". There are contributions that will export the sales information into an accounting program such as QuickBooks. Keeping good records will ensure that you know what taxes you have paid and what has been paid to you. With a good accounting system the process of filing GST and PST should not take very long, about 5 - 10 minutes every 3 - 6 months. If you are a new business than there is no reason you should have to file every month, every 6 months if you owe them money and every 3 months if they owe you money. The tax offices can change your schedule for you. Paying an accountant $100 a month to do it is pointless and will put you under, a good accounting program will set you back around $350 and you will also know the financial position of you company at all times.

 

Foreign buyers are the invoices for things you have sold to people living outside of Canada, local buyers are the ones living inside Canada. Those you can get from your osC program by printing their invoices.

 

Check the contributions to see if the accounting contribution works with the Canadian version of the software before going and spending your money on the program.

 

Peter

 

hello guys i have an ecommerce site in Canada, Toronto selling apparel items. I ship worldwide and only charge tax within Canada 15% in Ontario and 7% rest of Canada. 95% of my sales are outside of Canada so i charge very little tax.

 

my business is registered as sole proprietorship  , already have a business bank account , GST, PST number.

 

well i received this letter from  Canada Customs and Revenue Agency saying i have overdue returns that i have to file. ( if you do not have taxable sales, tax credits, or rebates that apply to filling period return the form by entering zeros on the appropriate lines.)

now if my sales gets

 

i went to an accountant and he asked me to provide him all this

 

1) Record of foreign buyers, order invoices

2) Record of local buyers, order invoices

3) bank statement

4) imports/purchases vouchers of the expenditures ( and material )

i have  the bank statement and importing records , but have no idea how i can get the other info.

 

like the local buyers, foreign buyers , invoices to calculate the GST stuff.  I have all the records/orders on site but how do i show all this to the accountant.

 

Another thing do i really need an accountant to do all this stuff, I mean cant I do all this myself . He said he will charge $100 every month to do GST returns pst  and inc tax returns. Is this

 

any information is greatly appreciated

 

thankyou

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  • 2 weeks later...

In respect to your having to collect GST, PST and such. This is not required on your Canadian sales unless your business earns/grosses $30,000+ per year. Under $30,000 there is no requirement to collect tax (at least on your Canadian sales) though you can do it if you wish. You will 'have' to collect GST if you are using the GST you pay out on your purchases for your business as a tax deduction on your return. This is the info Revenue Canada provided me with. I'm in Nova Scotia, not Ontario, but I can't see how that would make a difference on a 'federal' tax return.

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  • 1 month later...
In respect to your having to collect GST, PST and such. This is not required on your Canadian sales unless your business earns/grosses $30,000+ per year.  Under $30,000 there is no requirement to collect tax (at least on your Canadian sales) though you can do it if you wish.  You will 'have' to collect GST if you are using the GST you pay out on your purchases for your business as a tax deduction on your return.  This is the info Revenue Canada provided me with.  I'm in Nova Scotia, not Ontario, but I can't see how that would make a difference on a 'federal' tax return.

 

Here's a question: If you registered for a GST number expecting to make over $30,000 in a year, but then you did not, do you have to still have to pay GST on all your sales? Or just on those you collected GST on?

 

Example: You start off the year charging GST, but realize come November that you've only done $15,000 in sales (which you charged GST on), and you're not going to hit the $30,000 mark, so for the rest of the year you do not charge GST and get $5,000 in sales. At the end of the year, do you owe GST on $15,000 or $20,000?

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Here's a question: If you registered for a GST number expecting to make over $30,000 in a year, but then you did not, do you have to still have to pay GST on all your sales?? Or just on those you collected GST on?

 

Example: You start off the year charging GST, but realize come November that you've only done $15,000 in sales (which you charged GST on), and you're not going to hit the $30,000 mark, so for the rest of the year you do not charge GST and get $5,000 in sales.? At the end of the year, do you owe GST on $15,000 or $20,000?

As long as you have an open GST/HST account with the CCRA you most definately have to remit it, regardless of whether you charge it or not. The law isn't you must charge it, but rather that you must remit it. ;) If you don't want to charge or remit GST/HST because your sales aren't as high as expected you must close your GST/HST account and remit all taxes owing up to the date your account's actually closed. Taxes must be remitted for all taxable goods/services sold while your account was open.

 

~James

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hey All,

GST/PST on $30,000+ sales , is that the sales all together or just the sales in Canada.

i ship worldwide and my canadian sales are only around $200 per month but my sales outside canada is around $10,000 /month. so does that means i dont need to have the gst/pst account ? Wont the gov will notice or say anything when i will be getting ave of 10,000 in my business account and wont be filling any taxes cuz all the sales are outside Canada?

 

thankx

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Does anyone know how ebay does it? I'm considering starting an e-shop here in quebec and prob need to know. I was told that in quebec, you have to charge pst, qst. outside quebec, just qst. everywhere else, I think you have to charge local..Please confirm..

 

Also, can some one provide the link to the quickbook contribution? and the government link to incorporation? I know in quebec there is two levels on incorporation ( the prov level or fed lvel) I think the fed level is better.

 

John

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Does anyone know how ebay does it? I'm considering starting an e-shop here in quebec and prob need to know. I was told that in quebec, you have to charge pst, qst. outside quebec, just qst. everywhere else, I think you have to charge local..Please confirm..

 

Also, can some one provide the link to the quickbook contribution? and the government link to incorporation? I  know in quebec there is two levels on incorporation ( the prov level or fed lvel) I think the fed level is better.

 

John

 

hey new quickbooks contribution by Adam

 

http://www.oscommerce.com/community/contri...arch,quickbooks

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  • 10 months later...

To the threadstarter:

 

You say you have a "bank account number", as well as a PST/GST Number. Can you post the links as to where to register for those?

 

Also, have you registered for your business name registration?

 

What about trademarking?

 

I'm just somebody who's starting out, so any replies on these mandatory legalities would be GREATLY appreciated.

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You say you have a "bank account number", as well as a PST/GST Number. Can you post the links as to where to register for those?

 

Drop by any bank and ask for info on starting a business, most have all the info you will need with the addreesses etc. FBDB has a great book if they are near you.

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In respect to your having to collect GST, PST and such. This is not required on your Canadian sales unless your business earns/grosses $30,000+ per year. Under $30,000 there is no requirement to collect tax (at least on your Canadian sales) though you can do it if you wish. You will 'have' to collect GST if you are using the GST you pay out on your purchases for your business as a tax deduction on your return. This is the info Revenue Canada provided me with. I'm in Nova Scotia, not Ontario, but I can't see how that would make a difference on a 'federal' tax return.

 

One inaccuracy here is about PST I know in Ontario you must collect PST even if sales are under 30,000 the rule above is for GST only.

 

BTW GST is charged on shipping but no PST.

Backup before making changes. Backup before making changes! Backup before making changes!!

 

You did do a backup? eh?

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To the threadstarter:

 

You say you have a "bank account number", as well as a PST/GST Number. Can you post the links as to where to register for those?

 

Also, have you registered for your business name registration?

 

For Business number and GST numbers search the ccra site at:

 

http://www.cra-arc.gc.ca/search/menu-e.html

 

For PST inf o:

http://www.trd.fin.gov.on.ca/userfiles/HTM...a_3_7067_1.html

 

What about trademarking?

 

I'm just somebody who's starting out, so any replies on these mandatory legalities would be GREATLY appreciated.

 

As far as tradmarking a business name provides no protection of intelectual property. A regestered trade mark is the only thing in canadian law that provides this type of protection.

What it does is let you go after people who operate a similar business and use things similar to your trade marks.

 

It is best to have a layer set these up and usually costs about $2000

 

You can searh the existing database of trademarks in canada to see if ones you have in mind are already in use at:

http://strategis.ic.gc.ca/sc_consu/trade-m...gdoc/cover.html

Backup before making changes. Backup before making changes! Backup before making changes!!

 

You did do a backup? eh?

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