How is an Internet business taxed?
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How is an Internet business taxed?

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This topic contains 4 replies, has 3 voices, and was last updated by Avatar of Frank frankpapai 4 years, 9 months ago.

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  • #5037
    Avatar of Robert
    Robert
    Member

    We have a question from a client:
     
    How is an Internet business taxed?

    #5038
    Avatar of Robert
    Robert
    Member

    An Internet business is taxed just like any other business. If the business is a sole proprietorship or a partnership, the individual must complete Form T2125 Statement of Business or Professional Activities as part of their T1 Personal Tax Return filing. If the business is a corporation, a T2 Corporation Income Tax Return must be filed.

    #6788
    Avatar of Frank
    frankpapai
    Member

    Does one need to register in each province with web sales?

    #6905
    Avatar of Anthony
    Anthony
    Moderator

    You don’t need to register the business name in each province, but you could register PST accounts in applicable provinces. Smaller operations can usually get away with only registrations in their home provinces, but larger companies should limit the prospect of nasty repercussions by making sure that they keep the various Ministries of Revenue happy in addition to the Canada Revenue Agency. Charging PST is technically mandatory, even if the taxable product/service is supplied from outside the province.An HST/GST account has you covered in Alberta (which has no provincial sales tax) and all of the harmonized provinces. Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario and British Columbia have all harmonized their sales taxes at the time of this response. However, British Columbia is going back to separate GST and PST taxes at the beginning of April, 2013.

    #6947
    Avatar of Frank
    frankpapai
    Member

    Thank you very much. 

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