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Out of Province Sellers

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Sales Taxes -> Provincial Sales Tax -> Out of province sellers

What taxes does my business have to charge when shipping to another province?

Generally speaking, a vendor should register to collect the PST of another province if they have a business presence (e.g. office, salespeople) in that province.  If the vendor does not have a business presence in a province to which they are shipping, it is usually the responsibility of the buyer of the goods to remit the provincial sales tax.  For more information on individual provinces, see below.

a.    British Columbia

The province of BC (re PST being re-implemented effective April 1, 2013) indicates that out-of-province Canadian vendors should register to collect provincial sales tax for a province if they regularly do all of the following:

  1. Sell taxable goods or software to customers in BC.
  2. Accept purchase orders (including by telephone, mail, e-mail or internet) from customers located in BC.
  3. Deliver taxable goods or software to a location in BC.  Delivery into BC includes goods and software that are shipped physically or electronically, even if they are delivered through a third party, such as a courier.
  4. Solicits sales in BC (through advertising or other means, including mail, e-mail, fax, newspaper or the internet) for orders to purchase taxable goods or software.

For more information, see the following on the BC web site:

Bulletin PST 001 Registering to Collect Provincial Sales Tax (pdf)

b.    Manitoba

The province of Manitoba indicates that out-of-province vendors should register to collect provincial sales tax for a province if all of the following criteria are met:

  1. The vendor solicit sales in the province through advertising or other means.
  2. The vendor accept orders originating in the province.
  3. The goods are acquired for consumption and use in the province, not for resale.
  4. The vendor causes the goods to be delivered to a location in the province, regardless of who pays the shipping costs.

For more information, see the following on the Manitoba web site:

Retail sales tax bulletins See Bulletin #004, Information for Vendors, and go to Out of Province businesses under Section 2.

c.    Prince Edward Island

The Prince Edward Island Revenue Tax Act puts the onus on the person who brings into, causes to be brought into, or takes delivery within, the province of goods for consumption in the province, to self-assess and remit the tax.  There is no legislation in place requiring out-of-province vendors to register.  However, they do encourage out-of-province vendors to register and collect the PST on sales to PEI consumers.

d.    Saskatchewan

Saskatchewan indicates that non-resident businesses should consider registering to collect their provincial sales tax, as a convenience to their customers.  For more information, see the province of Saskatchewan article:

I am a non-resident vendor making sales into the Province. Do I have to collect tax on my sales?  - Go to Common questions about provincial sales tax on the Government of Saskatchewan website, and scroll down to this topic.

e.    Quebec

Since Quebec made significant changes to their QST system effective January 1, 2013, in general, the rules governing the application of the QST are harmonized with those concerning the GST/HST.  See links to more information under the heading HST provinces.

For more information on the Revenu Quebec website, see Quebec QST and GST - for businesses.

f.    HST provinces

All vendors who are registered to collect GST are automatically registered to collect HST.  A GST registrant in a non-HST province who sells goods which are delivered to an HST province must collect the HST.  A registrant in an HST province who sells goods which are delivered to a non-HST province would collect only the GST, not the HST.  For GST and HST rates see the GST and HST page.

For more information, see Canada Revenue Agency publications:

bullet Services considered to be sold in a participating province
bullet B-103 Place of supply rules under the HST

 

Revised: December 21, 2013

 

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