If I run a Canadian business selling digital products on a U.S. platform, am I responsible for collecting sales tax from Canadian customers?
Payments
Asked by Question Bot11/Apr/20131 answer
1 Answer
F
Faisal Khan
Answered 11/Apr/2013
To answer...
First, if you're a Canadian registered business and you sell to fellow Canadians, then Yes, you are required to levy the Sales Tax. It does not matter where you host, but if the money comes into Canada, and the sale was done to a Canadian resident/address, Sales Tax is applicable.
Secondly, will the platform itself be intelligent enough to levy the tax for all users out of Canada? Well that depends on the software (shopping cart) that you use. Most eCommerce systems would allow you to do this (the most popular shopping cart systems allow you to do this for US States). If it is something not natively built, you might need to have this coded so that Canadian Sales Tax is applicable, when selected as a Country, during checkout.
First, if you're a Canadian registered business and you sell to fellow Canadians, then Yes, you are required to levy the Sales Tax. It does not matter where you host, but if the money comes into Canada, and the sale was done to a Canadian resident/address, Sales Tax is applicable.
Secondly, will the platform itself be intelligent enough to levy the tax for all users out of Canada? Well that depends on the software (shopping cart) that you use. Most eCommerce systems would allow you to do this (the most popular shopping cart systems allow you to do this for US States). If it is something not natively built, you might need to have this coded so that Canadian Sales Tax is applicable, when selected as a Country, during checkout.