I placed an online order last night with a vender located in Ontario and Im in Alberta. I seen after I was paying 13% sales tax. I have ordered from e-cig venders from B.C. to Nova Scotia and always be only charged 5% gst. I emailed them last night and got a reply this morning saying they charge everyone 13% but an order I placed with them in December I was only charged gst. Is this now standard practice? Can they charge 13%?
Charging 13% sales tax for Alberta resident?
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I'm thinking they can.... I found this site if you wanna take a look at it
Overview of charging and collecting sales tax - Canada Business Network
I know my state is trying to get some crazy taxed pasted on e-juice.... praying it doesn't happen but
all these people care about are the dollars and how they're going to make up loss revenue from the
vapors quitting cigs.... IMO
Overview of charging and collecting sales tax - Canada Business Network
I know my state is trying to get some crazy taxed pasted on e-juice.... praying it doesn't happen but
all these people care about are the dollars and how they're going to make up loss revenue from the
vapors quitting cigs.... IMO
Sales tax Is charged depending on the province it is being delivered to. You should only have been charged GST.
Ontario businesses are required to collect based on the province of residence for the purchaser when it comes to online sales. In your case, you should only have been charged the 5% GST rate.
Overview of charging and collecting sales tax - Canada Business Network
I'd call them back and point out that all they're required to collect on your behalf is 5% and if Rev Can finds them doing this, they could end up in some very hot water.
Overview of charging and collecting sales tax - Canada Business Network
I'd call them back and point out that all they're required to collect on your behalf is 5% and if Rev Can finds them doing this, they could end up in some very hot water.
The provincial tax system is a nightmare for online vendors. If they are a new company and not familiar with setting up sales tax for different jurisdictions, that may be the problem. You should give them a call and try and resolve it.
I'm in Alberta too and I just received an order from Canvape today - they're somewhere in the Toronto area, and they only charged me GST. Sounds like a screwup on the vendor's part to me.
They are not a new company. I ordered from them last December and was charged only gst. This was their reply. "Thank you for ordering from our website! We are located in Ontario and the HST here is 13%. Our system charges it automatically every customer. Sorry for the confusion, I hope my explanation helps."
I also have an order from Canvape on the way and only gst charged. Also an order on way from Dash Vapes with only gst charged. It's only $8+ extra I payed but still! that could be another drip tip or battery lol.
May want to call them and explain the facts of life to them. Just because they're in Ontario doesn't mean they get to charge 13% for everyone, especially for those that are not within the province.
Agree. The following is the quote from the tax resource linked in this thread.
Charging sales tax to out-of-province/territory customers and to foreign customers:
If you are a vendor in one province or territory and you make sales to residents of another province or territory, what sales taxes do you charge them? When you sell and ship or deliver taxable goods and services to out-of-province/territory customers, the sales tax that applies in your customer's province or territory is generally applicable.
My only concern are the words "generally applicable." Contact the vendor again and ask for their explanation of the charge.
firecrow got it right--the PST boys in Ontario are an absolute pain to deal with for a small buisness.
The bottom line on collecting PST, HST and/or GST:
- 5% (GST) minimum is due by everyone in Canada who buys from your webstore.
- Your provincial PST (or HST) due by everyone in YOUR province who orders from your webstore.
- IF the buyer is from a province other than your own, and their province has HST, you collect the HST amount and remit it to the Feds.
- If the buyer is from a province other than your own, and their province has GST/PST or GST only, you do not collect (because you cannot remit) PST (or your own province's HST) from other provinces other than your own, UNLESS either or both of the following two things are valid:
- You are only able to collect (and remit) provincial PST taxes for another province if you have an address (office) and employee (at least 1) that 2nd province and are registered as a business in that province OR
- You are only able to collect (and remit) provincial PST taxes for another province if you PRIMARILY market and sell just to that province, AND have registered as a business with that province (as well as your own).
Anything else, to be frank, can be construed (and prosecuted) as tax fraud. We have enough spotlights on our poor struggling industry. We don't need CRA / provincial tax collectors sniffing around either.
Will add two PS's now:
PS - if any vendor is collecting GST/PST/HST and not remitting any of it, that is something the CRA takes really, really, REALLY seriously. I'm serious. It can be jail time serious.
PPS - I'd also add that many provinces haven't even classified e-juice as taxable or not. Under some interpretations, it would be both GST, HST, and PST free. Vendors assume it is fully taxable, and if they are remitting, I'm sure the provinces and CRA like the revenue, but this also remains an open question.
- M
- 5% (GST) minimum is due by everyone in Canada who buys from your webstore.
- Your provincial PST (or HST) due by everyone in YOUR province who orders from your webstore.
- IF the buyer is from a province other than your own, and their province has HST, you collect the HST amount and remit it to the Feds.
- If the buyer is from a province other than your own, and their province has GST/PST or GST only, you do not collect (because you cannot remit) PST (or your own province's HST) from other provinces other than your own, UNLESS either or both of the following two things are valid:
- You are only able to collect (and remit) provincial PST taxes for another province if you have an address (office) and employee (at least 1) that 2nd province and are registered as a business in that province OR
- You are only able to collect (and remit) provincial PST taxes for another province if you PRIMARILY market and sell just to that province, AND have registered as a business with that province (as well as your own).
Anything else, to be frank, can be construed (and prosecuted) as tax fraud. We have enough spotlights on our poor struggling industry. We don't need CRA / provincial tax collectors sniffing around either.
Will add two PS's now:
PS - if any vendor is collecting GST/PST/HST and not remitting any of it, that is something the CRA takes really, really, REALLY seriously. I'm serious. It can be jail time serious.
PPS - I'd also add that many provinces haven't even classified e-juice as taxable or not. Under some interpretations, it would be both GST, HST, and PST free. Vendors assume it is fully taxable, and if they are remitting, I'm sure the provinces and CRA like the revenue, but this also remains an open question.
- M
If they get dinged in an audit and have to pay everyone back and will have to set it up properly. Many business don't think about other provinces when they set up - there are details you need to consider and you NEED a bookkeeper and accountant to get it set up properly in the beginning unless you have that training already.
So it's Ace Vaper playing these tax shenanigans? Good to know. Off my vendor list too.
- M
They can only charge the PST if they actually have a physical brick and mortar store in that province. Being the smart shoppers that we are, always buy from a province that does not have a physical location this way they can't charge you the PST which is the biggest chuck of the two sales taxes !
I would personally report the incident to CRA , as they are likely charging the tax and not reporting it. It's basically a free markup for them for a few extra dollars. The headache you can cause them over 7 or 8 dollars will stop them from doing it again..
Did they at least provide an HST number on the receipt? Perhaps they aren't even registered?
Either way they will get fined and have to give money back to the people they overcharged. It's gonna eat a bite out of their profit this year, but you don't make a business without someone that knows business.
Just went on their website and it looks like they stopped charging "tax" but I suggest that anyone that ever bought from them previously to put in a complaint.
Did they at least provide an HST number on the receipt? Perhaps they aren't even registered?
Either way they will get fined and have to give money back to the people they overcharged. It's gonna eat a bite out of their profit this year, but you don't make a business without someone that knows business.
Just went on their website and it looks like they stopped charging "tax" but I suggest that anyone that ever bought from them previously to put in a complaint.
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I sent pmfji and email through the site and have recieved no response, so I am assuming they are not tax registered and trying to avoid the limelight.
You should immediately request that the 13% get paid bac, you are reporting them for charging illegal taxes, which will sprain an entire new audit.
This is such an especially touchy area and fly by nights like this only help the ANTz to swirl the swarm. Psi,let's weed them out first.
You should immediately request that the 13% get paid bac, you are reporting them for charging illegal taxes, which will sprain an entire new audit.
This is such an especially touchy area and fly by nights like this only help the ANTz to swirl the swarm. Psi,let's weed them out first.
You would be very wrong and breaking the law under your assumptions. Good thing you aren't a business man.
I live right in the city of Toronto and i am confused on what we pay.......so this thread has been very helpful for admittedly I haven't ever checked what i paid and just assumed i was paying 13%
Its one of the reasons I often buy from FT or buy my juice in bulk from Jughead--the taxes we pay here dont hurt so much that way, even if I was wrong and they werent alll charging me the much hated tax we pay here
Its one of the reasons I often buy from FT or buy my juice in bulk from Jughead--the taxes we pay here dont hurt so much that way, even if I was wrong and they werent alll charging me the much hated tax we pay here
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