Provincial tax, or no tax on for online services in Canada, 10 pts ?
I need your help Yahoo!
I have an online e-commerce site, (we sell online tutoring services) .
Our service comprises of online tutoring for North American students. The business is located in Canada. I've asked just about everyone if we have to tax our service, no one has a concrete answer.
Would any of you have answer for me!
the site is invalid . Correction please?
- GeorgeLv 61 decade agoFavorite Answer
I can't say for PST, but I'm pretty sure if you're dealing with a student in Quebec you should be charging QST, check with MRQ to be certain. http://www.revenu.gouv.qc.ca/en/ministere/minister...
For GST/HST there are two decisions that have to be made in each instance.
First, is the service being provided inside or outside Canada? According to their technical information bulletin on e-commerce, they consider the supply to have been made in Canada if the service is provided in whole or in part in Canada. Since the person providing the service is in Canada, then it is in part being provided in Canada, regardless of where the student is.
Since it is in Canada, GST/HST applies if you are, or are required to be, a registrant. (If your gross is over 30K in a month, quarter or year, you're required to be registered). Since it is in Canada, the second question to answer is which GST/HST rate to apply. The GST/HST rate would apply according to the place of supply rules. My reading of the bulletin is that the place of supply would be where the student is.
Here's a link to the bulletin, they have it in html or pdf:
You can phone CRA business window, 1-800-959-5525 for help. If they don't seem to know what they're talking about, call GST/HST Rulings. They have people who are expert in answering obscure GST/HST questions answering their phone.
Their information is here:
I just noticed, you asked about PST, not GST/HST. It will vary according to each provinces rules. For the HST provinces, definitely no PST, and not for Alberta, they don't have PST. You'll need to check each non-participating province's rules. Each province will have a Ministry of Revenue website. You'll have to look yourself.
- Fred SLv 71 decade ago
You must charge the appropriate GST/HST, based on where the service is delivered. It's up to you to determine where you think the service is being delivered.
Most people would take the position that the service is delivered at the user's end. So, for non-Canadian customers, no GST or HST is chargeable. For Canadian customers, you charge GST. For Ontario, BC, NS, NF, NB, you charge HST, and for Quebec you charge QST.
You must have a GST number to charge the tax. If you sell less than $30,000 per year, you don't have to register. If your revenue is higher than that, you must. Once you registered, you start charging GST/HST the next quarter.
- What the?Lv 61 decade ago
The criteria is simple, if you own a business and your gross earnings are less than 30K per year, you do not have to charge tax for your service. If you're business earns above 30K per year, then you must register & obtain a license through CRA, and they will designate a GST /HST number - hopefully this link will help