Provincial Taxes
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Provincial Taxes

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This topic contains 1 reply, has 2 voices, and was last updated by Avatar of Anthony Anthony 8 years, 5 months ago.

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    Avatar of Frank

    I am starting a web based company, I have heard I register in each province?  Has anyone had this experience?  

    Avatar of Anthony

    If you are selling to people in a jurisdiction with a provincial sales tax, you should, technically, register an account, then charge and remit PST. However, if you are only making a few hundred dollars in sales in that province, then it is probably more hassle than it is worth, both for you and for the provincial Ministry of Revenue. What you will find is that provincial taxation outside of your own home province is largely unenforced for smaller businesses. This does not mean that the matter can be ignored outright.If you are a large, nation-wide operation, making thousands of dollars in sales in each province, then you make yourself a target by not stringently following the regulations. It is better to charge and the taxes now, rather than hope that you won’t get caught later for not doing it. A few years in back-taxes can be a painful lesson, and it would come straight out of your pocket since you would not be able to go back to old clients/customers and ask for more money.When in doubt, ask an accountant. He/she would likely know of several businesses in the exact same situation as you and would have detailed knowledge of what they did.

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