Originally Posted by
Qdixon
Where is this company based out of? Does this company have offices in any other Provinces or offices in the US?
In Canada everyone pays the GST = 5% (Federal Sales Tax)
Now in each Province there is an additional tax called the PST. Some provinces like Alberta do not have this tax and some provinces Like Quebec have HST (soon to be Ontario as well in July) HST simply put, is the collection of GST and PST in one Tax.
Only setup taxes for places that you are required to TAX
Senario 1:
OK so you have a company in Canada who is located in the Province of Ontario. You should collect GST and PST for Ontario Customers and GST for all other Canadian customers. If you sell to the USA or other countries you do not collect or charge tax.
Senario 2:
You have a company based in Ontario and have offices in BC, Manitoba and Quebec. You will charge the GST to all sales within Canada. You will also charge PST to all the Provinces that you have an office in and HST only for Quebec.
Senario 3:
If the company is based in Canada and you have an office in the USA, you must also charge and remit US taxes if shipped and invoiced from US office or if Shipped from Canada, do not charge tax as it will be due at import.
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