tinytears

I know this is lazy because I can read through the huge manual I have on tax and so on but I have a few questions if anyone can help?

Employees

Do employers tax you at source the same as in the UK?

Is there a federal and provincial tax rate?

Also don't suppose anyone knows if there is a standard tax rate or does it work on tax codes like it does here?

Provincial/Federal Taxes

Again are you taxed at source, ie, here the VAT is usually included in the end sale price (for products not service) but I need to know if, say, you were buying from a website is it standard to include all taxes or whether they are added on to the price shown? I have done some research and I think on the sites that I have visited the taxes are included but as I've tried to go on to some competitor websites, I'm not sure if they are tax exempt (which leads to my question below), there seems to be a variance in the way this is displayed but my gut is that it is included, I just would like reassurance.

This is a long shot but does anyone know if you have to pay provincial and federal taxes - again in the UK, you don't have to be VAT registered unless you are turnover over a certain amount per annum, wondered if it is the same in Canada?


I know ultimately I probably need to sit down and re-read everything that I have on this but it would be handy if someone were able to give me a shove in the right direction, I am finding the whole taxes issue a bit of a minefield.

Thanks again, I appreciate any help that may be given.

Novocastrian

OK I'll give it a go, but don't count on accuracy.


Yes.

Yes. Clearly not every province is the same.

Not sure what tax codes are, but here it's based on your actual salary.

Do you mean if you're selling from a website?

Getting confused here. Are you now asking about a web-based business enterprise? The equivalent of VAT for a small business is GST, you have to register if the annual turnover is more than something or other, $30k, I think.

tinytears

Thank you, yes I'm talking about web based enterprises, although we also sell off line via retail too but initially until we build up contacts in Canada it will be web only.

Thank you for your answers, this helps massively, I think I confused myself with it all and my accountant over here can't help (probably because I confused her too), I have given him a copy of all the documentation for a meeting in a week or two but I'd like to have my head around it by then (its cheaper that way).

montreal mike

here are your answers and more

even I, a bean-counter, have to consult it


http://www.taxtips.ca/

rach_woz99

Not sure where you are thinking of going to in Canada, tinytears, but here in NS internet shopping is nothing like as popular as in the uk. Lots of people are seemingly unaware of "computer type things" and with Canada post being so much more expensive, the price soon adds up!

Just food for thought, you have probably already considered this mind!

Auld Yin

I am finding the whole taxes issue a bit of a minefield.

I can tell you're going to be a great Canadian. We are all in the minefield.

Novocastrian

I'm almost afraid to ask, but what sort of thing are you marketing?

It's not an electronic hoodie repellant or some remote animal torture device, is it?

JonboyE

My turn!

Yes

Yes, the federal rate is the same across Canada and each province has its own rate.

It is similar (ish) to tax codes. However, the Revenue do not issue codes, it is up to you to make a declaration to your employer otherwise they deduct tax at the standard rate.

99.99% of the time prices are show before sales taxes. An internet business always shows prices before sales taxes.

If you make taxable supplies of goods and/or services of more that $30,000 in a year you must register for GST. You then charge your customers GST on sales and reclaim the GST on goods you purchase. Like VAT you pay the difference to the Revenue.

Provincial sales taxes are different. If you are in a province that has a sales tax you must charge PST on all taxable supplies. You can buy goods for resale without paying sales tax.


The wiki on Canadian taxation is a good place to start. Once you have got your head around that I agree with Mike that the taxtips web site is an invaluable source.

tinytears

Hi

Thanks for your message, We were aware that internet shopping isn't as popular but we sell a very specialised range that generally tend not to be as available off line. That said we also offer a mail order and telephone order service too. We currently ship worldwide but our product range is also very exportable to the US too.

Really appreciate this though because we will rework the figures done so far. I wonder if people in the bigger cities are more internet savvy?

tinytears

Thank you, anything accounts is my real weakpoint, luckily it is my co-Directors strong point but this was really giving me a headache.

I'll go on to that site today and have a read, thank you.

tinytears

I can't wait!! At last I won't be the only person confused by taxation!

tinytears

Yes, a firework propelled one!!

Mind you doesn't sound as if there is much call for it, too hot or too cold for kids to hang out on street corners chucking fireworks into kids trampolines and all that!

I don't torture all animals either - horses are bigger than me and frighten me so I wouldn't dream of upsetting one, it could do more damage to me!

tinytears

Thank you so much for this reply very helpful, especially on the internet side of things. We will have to sign up straight away for GST I think, certainly after the first few months. I guess that can wait until we are actually trading though.

Thank you again, very helpful.

JonboyE

You can register voluntarily before your sales reach $30,000. I would do this as soon as you start to set up your business. You can then reclaim the GST on your set up and initial business costs.

tinytears

Thank you, I will do that! I admitted defeat today and have been in touch with the business centre that is helping me with this.

I *think* I have it all right but can't find info anywhere on when you pay - whether it is monthly or quarterly etc.

It is further complicated by the number of businesses that I am opening up out there, why make things easy and just open one business when you can open lots of them all at the same time??