Sales Tax - Confused!

[brandon184]

I have my own small business, doing website design. I have my business registered with the province I live in (I'm in Canada, remember) .. And I have no idea what to do as far as collecting sales tax is concerned. People will be submitting their payment information online. Most of my sales will be local, but not all.

If I do collect sales tax, which I assume I have to - what the hell am I supposed to do with that additional 14%? (GST & PST)

I don't want to screw up, because the Canada Revenue Agency has absolutely NO mercy and I'd like to preferrably keep my genitals intact.

Input from anyone who knows anything about our tax system would be GREATLY appreciated.

Thanks!

Brandon

[The Real Bingo]

A simple Google search came up with this. Does that help you?

[brandon184]

I'll have a look through it. Their website is so vague.

It may as well just say, "Find how much money you think you owe us. Times that number by 2. Send us the money."..

Brandon

[Siliconjunkie]

Go pay an accountant $50 to answer your questions. It will be well worth it and you should be able to write the expense off and they will be able to tell you more accurately what you need to do.

[Gomer]

Here in MI... there is no tax on labor, only goods.

[RayH]

It's alright to toss out questions on a BBS. But sometimes, you get what you pay for in answers. This answer requires a profesional. Either talk to a tax lawyer, accountant, or call the taxing agency. But you may be involved with several taxing agencies.

[rastorize]

For free advice - that's some valuable advice Ray...and he's right - definately see a pro. 14% tax in Canada?! So for everything you buy, you pay 14% tax?! Why so much? I will stop complaining about California's 8% now.

[pickel]

Move to the USA and put up with the IRS

[brandon184]

The CRA is worse!

And yeah - 14% tax. 7% GST (Federal) and 7% PST (Provincial) on every purchase except on your general non-taxable items.

Buy a car for $30,000. After tax? $34,200.

[TOAD6147]

Is this your out?

Quote:

Who registers for the GST/HST?
You have to register for and charge GST/HST if:

you provide taxable goods and services in Canada; and
you are not a small supplier.
You do not have to register if your only commercial activity is the sale of real property otherwise than in the course of a business or if you are a non-resident who does not carry on business in Canada. If you are a non-resident, see our guide called Doing Business in Canada - GST/HST Information for Non-Residents.

Small supplier
You are a small supplier if you meet one of the following conditions:

if you are a sole proprietor, your total taxable revenues (before expenses) from all your businesses are $30,000 or less in the last four consecutive calendar quarters and in a single calendar quarter;