why is PST not charged?

[Lulz]

So basically... every single RFDer thats recommending NCIX over NewEgg because "You save on PST", is essentially defrauding the government, because even though NCIX isn't charging you, you are supposed to remit?

Awesome question, would like to know answer as well.

[gman]

Awesome question, would like to know answer as well.

Was it answered already?

[Stinger]

That's rather smart yet shady of ncix to elect not to do that, so their prices in the end are cheaper as far as the masses are concerned, and end up taking sales from other companies that actually are collecting the proper taxes!


Thanks for the info!

No - Its not shady or fraudulent at all.
There is a LOT of misinformation flying around here, and a lot of bullocks accusations regarding tax fraud

Take a look here for a quick run down:
http://sbinfocanada.about.com/od/pst...commerce_2.htm


At the very end is a nice little summary regarding what provinces require what taxes to be collected. All provinces that collect PST, except BC and Manitoba are "voluntary" unless that is the home province or they maintain a business presence- which requires them to basically setup shop and advertise.

As BC is NCIX's home province - they collect PST, for MB the law looks like this:

Out-of-province businesses that sell/lease taxable goods to Manitoba purchasers are required to be registered as a vendor under the Act and to collect the RST if all of the following circumstances exist:
1) The seller solicits the order for the sale in Manitoba, directly or through an agent, by advertising or any other means, e.g. in person, by telephone, mail, e-mail, fax, posters, television or newspaper advertisement targeted towards Manitoba customers,
2) The seller accepts orders originating in Manitoba to purchase tangible personal property. The order can be originated by telephone, Internet, e-mail, fax, letter or any other means from a location in Manitoba to the seller or agent located in or out of Manitoba,
3) The goods are acquired for consumption or use in Manitoba, i.e. not for resale, and
4) The seller causes the goods to be delivered in Manitoba, i.e., delivered by the seller, or shipped by the seller by common carrier, whether

Technically - #1 is not met. There is NO direct solicitation of orders for Manitoba customers. NCIX ads, commercials and such are ONLY directed to BC customers, there are no ads outside of the province - their internet ads do not specifically target Manitobians (maybe thats not the right word). Maybe considered a loophole, but in a sense they could be seen as shooting themselves in the foot.

The other provinces maintain a very similiar list of rules, most of which are even more lenient or have loose "loopholes"
Also NCIX is most likely only a registered business in BC - so there is no established business presence elsewhere - though this may leave their business open to be potentially copycatted in another province

Companies like TD charge PST to BC customers, even though they are based out of Ontario because they could potentially be registered in other provinces as a business as well. Also they are able to advertise in other provinces.

There are numerous small business that do not charge PST except in their home province - it is a very common thing

It may seem unfair, but obviously NCIX is not at the capacity where it would be required to expand into provinces outside of BC, whereas other etailers are.


The reason newegg charges GST and PST is as others have mentioned, they do it on your behalf. Obviously they maintain a business presence in other provinces, or they intend to in the future and want to safeguard. Also, if they didn't charge it to you - MOST likely you would be billed when the package arrived as required by law for imports.... tacking onto the "clearing fees" by UPS....

[belowzeros]

No - Its not shady or fraudulent at all.
There is a LOT of misinformation flying around here, and a lot of bullocks accusations

so true...you guys just pulling stuff out your butt need to not click "submit reply", you do more damage than good


Regarding the PST mystery consider a "canadian corporation" versus provincial or even small business. also google is your friend, this information isn't that hard to find from official sources.

[DLFB]

There is a LOT of misinformation flying around here, and a lot of bullocks accusations

lol so true.

You can be a REGISTERED BUSINESS in Canada even if you aren't a resident. You can do that by registering with CRA. Many business do this so they can claim ITC with CBSA.

[tlamm]

My wife is an auditor for PST in Ontario.

If a business has a presence (ie office) in Ontario they have to collect and report the PST.

If they do not have a presence, they do not have to collect it.

For what its worth, I order tons of stuff from BC PST free.

[sdzbwxp]

PST is due any time you make a purchase for use in the province, unless there is an exemption for the item. In case you are buying from out of province vendors, you should self-assess tax and remit to the provincial government.

If you make sales to other province, you may be asked to register and collect tax for the province even if you do not have a store or location in the province. An example is tigerdirect who do not have any BC location, but registered with BC. Even some US companies are registered to collect tax for canadian provinces. So, In NCIX's case, they may get a phone call from Ontario any time.

Conclusion: if you purchased online from other province, and did not get charged PST, consider yourself lucky. It is not legal and you do owe tax to the province. Though, the chance that an individual gets audited is slim. If you are running a business, and have out of province purchases without PST paid, you will be liable for all tax owing plus interest and penalty if gets audited.

[thrifty1]

So basically... every single RFDer thats recommending NCIX over NewEgg because "You save on PST", is essentially defrauding the government, because even though NCIX isn't charging you, you are supposed to remit?

What is the purpose of your post sir ? to make us feel bad ?

Perhaps we should all just flag our purchases under Liberia as is the case of CSL... or is that just for former finance ministers ?? or prime ministers ???

[balance]

guys there is no way not paying NCIX PST is fraud if that was the case CRA would of when after them long time ago and not have us here sitting on our desk typing about fraud.

what newegg does surprises me and discourages me to by from them unless its really good deal.

NCIX ftw

[1226]

guys there is no way not paying NCIX PST is fraud if that was the case CRA would of when after them long time ago and not have us here sitting on our desk typing about fraud.

what newegg does surprises me and discourages me to by from them unless its really good deal.

NCIX ftw

a) PST is collected by the provinces, not CRA.
b) It is tax fraud. On a tiny, tiny scale. Not self-assessing a few bucks on a hard drive purchase is the jaywalking of tax fraud. Yes it's illegal, but it would cost more to collect than the amount they collect so nobody cares.

[sdzbwxp]

1226 was correct.
provincial governments collects PST, NOT CRA.

There are businesses that do not charge PST where they should. Then years later, they get audited and assessed for taxes they didn't collect plus interest and penalty. Obviously, most business won't be able to go back to their customers and ask for the tax, they bite the bullet. In NCIX's case, they won't get assessed by ON if they are not registered yet, but they can expect a call from ON government asking them to register at any time.

In fact, many provinces have audit office in other provinces focusing on inter-provincial sales.

Not self-assessing tax on small purchases is not big fraud, but it is certainly not legal. I guess the point of the thread was to find out the principle.

I bet provincial governments would love to be able to track and recover all those taxes on individual level, but they haven't figured out how. PST on Inter-provincial car sales are captured through insurance though.

[kleptodathief]

newegg 'free shipping' is just a BS farce! they charge u 'handling fees'/extra fees and it turns out to b more then the product itself!

so ur 10$ item bcomes 30bux shipped final price