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Level 1

Taxes to another province

Purchased products from Ontario.  I am in BC.  On the receipt,  they charged me 13% HST (ON).  My only options in my accounts are BC HST, PST or GST.  How do I enter this?


I can't add taxes to each individual supplier.

Solved
Best answer 03-11-2019

Best Answers
Highlighted
Level 2

Taxes to another province

Hi

Correct, unable to attach to supplier.  

However, you do have the option of adding different tax codes.

Left Side Bar>Taxes>Add tax top right>Tax Rate>Fill in Tax Name, ie HST ON (13%)>Fill in description ie. Ontario HST - once you click purchases the tax rate will come up where you can enter the 13%.  In this case, you would also choose liability and ITCs so when you post the expense receipt, and use your newly created HST ON 13% tax code it should show up on your ITC report as being paid on purchase.

Does this help you?

View solution in original post

5 Comments
Highlighted
Level 2

Taxes to another province

Hi

Correct, unable to attach to supplier.  

However, you do have the option of adding different tax codes.

Left Side Bar>Taxes>Add tax top right>Tax Rate>Fill in Tax Name, ie HST ON (13%)>Fill in description ie. Ontario HST - once you click purchases the tax rate will come up where you can enter the 13%.  In this case, you would also choose liability and ITCs so when you post the expense receipt, and use your newly created HST ON 13% tax code it should show up on your ITC report as being paid on purchase.

Does this help you?

View solution in original post

Highlighted
Level 1

Taxes to another province

Thanks!  That makes sense!
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Level 7

Taxes to another province

Another thing you may want to explore if you continue to buy from this particular supplier is to make them aware of the 'Place of Supply' rules regarding GST/HST.  If they are shipping goods to you from Ontario to BC, then they are supposed to be charging you the BC GST tax rate, not the Ontario HST rate, as BC is where the goods are being supplied to.  The link below helps in understanding this.  I realize it's not your fault that your supplier is charging you the wrong rate of tax for goods supplied to BC, but a little education to your supplier goes a long way to prevent their erroneous practice from continuing.

 

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-col...

Highlighted
Level 1

Taxes to another province

Hi, 

What do you do if you are shipping items to another province and Shopify is charging the taxes correctly in their interface but then once I get the invoice from Shopify with the taxes broken down by province, I am not sure where to allocate the taxes that were charged to ship to Ontario and Quebec from BC. Please help! Thank you

Highlighted
Level 7

Taxes to another province

Since Ontario is a HST participating province, you would charge that customer Ontario HST at a rate of 13%.  You will need to set up a Sales Tax Item for this, as well as a Tax Item in the Item list.  This will be included in your GST remittances.

 

My practice has always been not to charge PST to customers in other provinces as it is not feasible for me to register for PST in all provinces.  The customer is responsible, if not charged PST on taxable goods or supplies, to self-remit to their own tax authority.

 

Reading below about Quebec's rules, it is very unclear to me what they are saying.  In one place it says that a person who does not live in or operate a business in Quebec is exempt, and in another place it seems to imply that as a business operator outside of Quebec, anything you sell for delivery to a consumer in Quebec, is required to be registered for the QST. (??)

 

See following:

Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario

When you sell to HST-participating provinces (Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia and Ontario), you are required to collect HST in the amount applicable to the province and include it in your GST/HST return. In this case, since you are already registered for GST, you are automatically registered for HST, even if you do not operate in an HST-participating province.

Quebec

As a rule, any person who sells taxable goods or provides taxable services in Quebec as part of their commercial activities is required to register for QST. This rule excludes small suppliers, persons whose only commercial activity is supplying real property by way of sale other than in the course of the activities of a business, and persons who do not live in or operate a business in Quebec.

Moreover, when a person, other than a small supplier, who does not reside in Quebec but is a resident of Canada, who does not operate a business in Quebec and who, while operating a business in Canada, attempts to solicit orders in Quebec for taxable supplies, other than a zero-rated supply, or to acquire tangible personal property on their own, other than certain written documents, for delivery to a consumer in Quebec, is required to be registered.