Do I need to collect taxes (Selling to Canada)

Accounting & Taxes
, , , , ,
1

Hi,

I recently set up a store and want to sell to Canada (where I am located) and the U.S.

I am trying to find the information on Shopify’s help centre on whether I would need to collect taxes however all the information is SO conflicting!!

For example the following help article states I don’t have to based on me not earning $30,000

Merchants that sell in Canada and earn 30,000 CAD or more are required to register for, charge, and remit GST/HST. If you’re not sure whether this requirement affects you, then contact your tax authority or a local tax expert.> If your store is based in Canada, then generally you need to register for a GST/HST account if both of the following are true:- > You sell or lease taxable products or services.

  • Your revenue from taxable sales in Canada is more than 30,000 CAD over the past four completed consecutive calendar quarters, or more than 30,000 CAD over the current calendar quarter.

Yet I then find this page that states I need to maybe set up Registration-based tax settings:

Registration-based taxes are available for certain regions only. This guide applies to you if your store is based in one of the following regions:> > - United States> - Canada> - European Union> - United Kingdom> - Norway> - Switzerland> - Australia> - New Zealand> > Registration-based taxes require you to input a tax registration number to calculate your taxes. You can get this number from your local tax authority.

So I’m unsure what to do here. I also am unsure about the difference between registration-based taxes and location based taxes. Do I need to collect taxes?

Thank you in advance

2

Hi, @MData .

To confirm the information within our Help Center articles, merchants are required to input their tax registration numbers within their Shopify account if they are based at the listed regions and meet their respective region’s tax requirements.

It sounds like you’ve been able to locate the relevant Help Center documents for taxes in your region, so from here, if you require further assistance with verifying your tax liabilities, you’ll need to consult with a local accountant or tax authority so that they can help verify this for your particular location. They’ll also be able to ensure that you’re filing and remitting your taxes correctly.

3

Hi MData

I’m in the same situation as you, Canadian Shopify customer trying to figure it out. According to the tax software Intuit, yes you will need to charge when selling to another province. This link, shows the tax amounts to charge. Hope this helps.

I still have yet to figure out how to change tax percentages per province in Spotify.

https://turbotax.intuit.ca/tips/what-every-e-commerce-business-in-canada-should-know-about-paying-taxes-14919