tax informations for canada

[jonkiller]

I just want to know how it's working when we selling on internet? When i need to declare has an income? I'm not having business number or tax number and i'm not charging tax when i'm selling too! But i don't want to have a bad surprise next spring! i'm searching some infos but nothing for canada!

[gregpj]

We have a thread somewhere for this.. I'll try to dig it out but essentially it works like this.

You don't need to charge GST until you sell 30k worth in a year. HST and PST are generally the same, but check your specific province - Quebec right?

As soon as you make a profit you should be declaring the profit. It's similar to the US in that if you're going to claim you are selling your collection the you technically should be declaring capital gains (though on very small gains no one does and nobody will come for you if you don't). Otherwise you declare as self income in tax day.. Registering a small business (partnership with one partner) is cheap and pays for itself in a year with deductions you can now make in using part of your home for business.

Honestly, you should probably talk to an accountant or another small business owner. Everyone should unless you understand tax laws properly which most folks don't.

[jonkiller]

Yes i'm in quebec! If you find the thread give it to me please! But it means that everyone should declare when selling with profit on the internet! But i'm curious of i many doing this?

 

thanks

[gregpj]

There is a certain threshold where revenue Canada doesn't want to hear about, but it's not that much for serious and semi-serious resellers.

[Average Guy]

I'm in the US and I am curious to learn if you guys know the percentage of tax you would pay for import parcels by value?  I remember when I 1st started selling I declared $100 true value of the item and the Buyer refused acceptance. She messaged me saying taxes were like $35. I had no idea.

[lego rules]

7 hours ago, Average Guy said:

I'm in the US and I am curious to learn if you guys know the percentage of tax you would pay for import parcels by value?  I remember when I 1st started selling I declared $100 true value of the item and the Buyer refused acceptance. She messaged me saying taxes were like $35. I had no idea.

Depends on the postal service used.  There is a brokerage fee and there is tax.  Tax in Ontario is 13%.

[Average Guy]

I always use the USPS. Canada has a national post service, yes? I saw them strike and get locked out before in the past. I mean the work isn't' the contracted out? I know some 1st world European countries contract their entire mail service: Germany, France etc. I'm assuming the brokerage fee is for carriers other than Canada post? Thanks in  advance.

[lego rules]

I believe Canada Post charges $9.95 for brokerage / handling fee.

[gregpj]

17 minutes ago, Average Guy said:

I always use the USPS. Canada has a national post service, yes? I saw them strike and get locked out before in the past. I mean the work isn't' the contracted out? I know some 1st world European countries contract their entire mail service: Germany, France etc. I'm assuming the brokerage fee is for carriers other than Canada post? Thanks in  advance.

Yes, we have Canada Post. It is a Crown Corporation of the Government of Canada (https://en.wikipedia.org/wiki/Canada_Post). They will deliver all letters and parcels that come from other national mail services such as USPS, UK's Royal Mail, etc.

Canada Post charges a $9.95 brokerage fee on products that require duties or taxes to be collected (anything over $20 in value). UPS and FedEx typically charge between $40-$65 depending on what they are delivering. Canada Post often does not collect the fee on small items but they almost always collect the taxes... every now and then they'll forget the taxes too (or won't bother) especially if signature is not required since they'll just leave it at your door. Sometimes if the package comes from a non-English speaking country (Germany or Russia are good examples) they often don't bother reading the declaration forms and do the currency conversion to collect. Unfortunately, from the US they can always read those forms.

But yes, a lot of Canadians think that ordering online exempts them from local taxes. Even gifts over $60 in value are taxable once they cross the national border. Ordering from another province will cause you to only pay the national tax (GST) when purchased, but in theory you are supposed to declare the purchase to your provincial government and pay provincial sales tax (it's just that the local company you ordered from has no means to remit said taxes to another province).

The ONLY time a product is not dutiable or taxable is when you've been out of the country for more than 24 hours ($200 in tax and duty free goods) and then 48 hours ($800). Otherwise, if you didn't visit and stay you must pay!

 

[gregpj]

@jonkiller

Here's the thread..

Some good stuff and links to other good stuff in there. I might merge this thread with that one after you've had a chance to go and read... It's nice to keep this information in one place (and the other thread isn't too long anyways).

[Average Guy]

Thanks for that detailed reply greg, and also to lego-rules. Now that you mention it I remember reading Canadians gripe about high fees from Canada Post here somewhere while they were discussing  the possibility of a future lockout.

On a side note I transport US MAIL under contract for an independent company. I remember both a lockout and a different stike by CCGP so I tried to discuss it with the mail workers here in the States and these are Union ppl, they had no idea of either event. I couldn't help but think "the Canada Post is the probably the same type entity (a nationally supported servive,not contracted like I am) as the USPS and they're being locked out because of the workers'  demands. The very same thing could happen to you here in the US  and you're not aware or following CP's struggle"  This was 2011-2012? Right around the time when USPS was trying to decide what facilities to close for consolidation. Mind you these ppl aren't rocket scientists and are known at my faculty for actually sleeping in the building on duty with a Union to cover them for any wrongs the act out.  Ain't Union life bliss? lol