Sales Taxes -> Provincial Sales Tax -> Out of province sellers
What tax 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 Out-of-Province Vendors
The province of BC (re PST 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:
For more information, see the following on the BC web site:
BC PST Registration Obligations Extended
The BC 2015 Budget indicates that effective September 1, 2015, a person located outside of BC that in the ordinary course of business:
must be registered for the purposes of levying, collecting and remitting provincial sales tax at the time of the sale.
Voluntary registrations will be accepted before September 1, 2015, and a person may be subject to failure-to-register penalties if they are not registered as required on or after September 1, 2015.
b. Manitoba Out-of-Province Vendors
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:
For more information, see the following on the Manitoba web site:
c. Prince Edward Island Out-of-Province Vendors
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 Out-of-Province Vendors
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 Out-of-Province Vendors
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.
f. HST Provinces Out-of-Province Vendors
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 publication:- GST/HST and place of supply rules
Revised: February 13, 2018
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca