E-Business Alberta | The Alberta E-Future Centre blog
E-Business Alberta | The Alberta E-Future Centre blog

 

Taxing E-Commerce

Adding online sales to you current business model may seem attractive as it opens your doors to the world. But, how do you know how much tax to charge, and when, and to whom? The Canada Revenue Agency site’s FAQ page is a good place to start when considering selling online.

GST

When selling within Canada you need to be aware of GST/HST as you will charge one or the other on all sales. According to Canada Revenue Agency

You do not charge GST/HST on taxable sales if you deliver the goods or make them available to a purchaser outside Canada.
(Canada Revenue Agency : GST on exported goods…)

PST

In a province with a sales tax, a resident cannot escape the tax by purchasing a taxable good from out of province. The question is whether the out-of-province seller is expected to collect and remit the tax, or whether the resident is expected to self-assess and remit the tax.

Selling from Alberta into Provinces with Sales Taxes provides tax contacts, as well as information on determining PST for e-commerce transactions.

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