Entrepreneurship & Small Business

Dropshipping - Taxes Based on Billing Or Shipping Address?

  • Last Updated:
  • Apr 16th, 2014 2:59 pm
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Newbie
Oct 20, 2009
29 posts

Dropshipping - Taxes Based on Billing Or Shipping Address?

Hi:

I'm starting a dropshipping company based in Ontario. The nature of my business is that the Billing address can be anywhere in the world, but the Shipping address and the country goods ship from will always be the same (e.g. ship from Country X when ship to Country X). Also, the Ship To Country will never be Canada. Do I ever need to collect taxes? Specifically, what if any taxes do I need to collect in the following scenarios:
  • Customer Billing Address in Ontario
  • Customer Billing Address in Canada (not Ontario)
  • Customer Billing Address in Country Y (but not the ship from/to Country X)
  • Customer Billing Address in Country X (same as ship from/to Country X)
Thanks!
1 reply
Deal Addict
Mar 9, 2005
2021 posts
165 upvotes
Vaughan
Taxes are collected according to shipping addresses.
Outside Canada - no tax.
Inside Canada - depends on each province, you can read the guide on GST and HST online.
You have to have an GST/HST account to collect taxes.

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