Entrepreneurship & Small Business

Do I have to pay taxes to Canadian govt for selling item online shipped to US/International buyer?

  • Last Updated:
  • Oct 13th, 2017 8:46 am
[OP]
Newbie
Jun 19, 2009
57 posts

Do I have to pay taxes to Canadian govt for selling item online shipped to US/International buyer?

Hi,
This must be a simple and easy question but I was wondering if (and how much %) I have to pay taxes to the Canadian government for selling an item online to a foreign buyer located in US/Overseas? I understand we do not charge the customer any taxes if they live outside Canada but do we have to pay the government taxes for it? I earn about $10,000 / year selling products online. thanks

cheers
6 replies
Deal Addict
Feb 5, 2009
2322 posts
518 upvotes
Newmarket
You do not charge sales tax, but you do pay income tax on your profit, just like for any other item sold in Canada.
Deal Addict
Feb 29, 2012
2324 posts
1173 upvotes
Richmond
Homerhomer is correct. You do not charge GST/HST to foreign buyers.
Newbie
Aug 10, 2017
27 posts
12 upvotes
Mississauga
accesskb wrote:
Oct 8th, 2017 10:16 am
Hi,
This must be a simple and easy question but I was wondering if (and how much %) I have to pay taxes to the Canadian government for selling an item online to a foreign buyer located in US/Overseas? I understand we do not charge the customer any taxes if they live outside Canada but do we have to pay the government taxes for it? I earn about $10,000 / year selling products online. thanks

cheers
If you earn $10,000 per year, the income should be reported on your income tax. Are you claiming the expenses?
Deal Addict
User avatar
Jul 22, 2004
1680 posts
28 upvotes
ETOBICOKE
pean42 wrote:
Oct 10th, 2017 5:32 pm
If you earn $10,000 per year, the income should be reported on your income tax. Are you claiming the expenses?
If he earns any income, he should report it on his income tax return.
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[OP]
Newbie
Jun 19, 2009
57 posts
thanks for the replies.

pean42 wrote:
Oct 10th, 2017 5:32 pm
If you earn $10,000 per year, the income should be reported on your income tax. Are you claiming the expenses?
Yes, I will be reporting the income in my next tax return forms.

I sell hand made goods and feel like I have to pay taxes twice. First, when I buy raw materials to make the goods and possibly again for selling the goods to a foreign buyer whom I won't charge taxes. >< loll

Is it better or do I get some exemptions if I apply for a business license? Anyone know what are the benefits for getting a business license, the requirements and process?
Deal Addict
Feb 5, 2009
2322 posts
518 upvotes
Newmarket
accesskb wrote:
Oct 12th, 2017 7:32 pm

I sell hand made goods and feel like I have to pay taxes twice. First, when I buy raw materials to make the goods and possibly again for selling the goods to a foreign buyer whom I won't charge taxes. >< loll

Is it better or do I get some exemptions if I apply for a business license? Anyone know what are the benefits for getting a business license, the requirements and process?
You don't pay taxes twice. Are you registered for gst/hst? if yes you will claim the sales tax paid on your purchases on your sales tax return, if you have not registered for hst you should. If you are not registered because your revenues are under the mandatory threshold then you still don't pay taxes twice, you simply expense the total purchase including the sales tax.

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