Shopping Discussion

Charging PST Sales tax outside Ontario?

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  • Aug 31st, 2009 5:16 pm
[OP]
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Aug 25, 2005
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Kitchener

Charging PST Sales tax outside Ontario?

Hello,recently I made a purchase from Visions.ca which is a retailer in Western Canada. It was delivered to me, in Ontario.
They charge both GST + PST.

Another Western Canada retailer, NCIX.com, does not charge PST.

A response I receiver from Visions.ca about charging PST was the following:

[QUOTE]According to our understanding of the laws in the Province of Ontario with regard to Provincial Sales Tax, all purchases are subject to provincial sales tax in Ontario regardless of whether it is made in a retail store or online. When a purchase is made online and shipped to Ontario, PST still needs to be paid to the government either by the retailer or the customer. In order to save our customers the trouble of having to remit the PST to the government themselves, we collect the PST and remit to the government on their behalf. Please let me know if you have any further questions.[/QUOTE]


Should they be charging PST? They have no locations in Ontario, and NCIX seems to be doing fine without charging it.

I'm confused. Does anyone know the law about PST? When and where it is charged?
5 replies
Deal Expert
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Jun 9, 2003
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Markham, ON
SomeGuyGG wrote: Hello,recently I made a purchase from Visions.ca which is a retailer in Western Canada. It was delivered to me, in Ontario.
They charge both GST + PST.

Another Western Canada retailer, NCIX.com, does not charge PST.

A response I receiver from Visions.ca about charging PST was the following:




Should they be charging PST? They have no locations in Ontario, and NCIX seems to be doing fine without charging it.

I'm confused. Does anyone know the law about PST? When and where it is charged?
...that took me 2 seconds to find on google...

http://www.taxtips.ca/pst/outofprovincesellers.htm


Ontario
Deal Expert
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Jun 9, 2003
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Markham, ON
SomeGuyGG wrote: Hello,recently I made a purchase from Visions.ca which is a retailer in Western Canada. It was delivered to me, in Ontario.
They charge both GST + PST.

Another Western Canada retailer, NCIX.com, does not charge PST.

A response I receiver from Visions.ca about charging PST was the following:




Should they be charging PST? They have no locations in Ontario, and NCIX seems to be doing fine without charging it.

I'm confused. Does anyone know the law about PST? When and where it is charged?
what you can do is ask for the Ontario Permit number from Visions. If they have one...then yes, they are registered to collect PST...if no...I would report them.
Deal Guru
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Dec 25, 2003
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thelefteyeguy wrote: what you can do is ask for the Ontario Permit number from Visions. If they have one...then yes, they are registered to collect PST...if no...I would report them.
If Ontario is anything like BC then they don't need to be registered to collect and remit. (http://www.sbr.gov.bc.ca/business/Consu ... _pay.htm#2) so they're not necessarily scamming if they don't have a PST #. I would be really surprised if a company the size of Visions would be collecting tax without remitting. The penalties are huge.

I think if you sent them a letter stating you plan to self-assess (not sure if you would need to show proof), that should release them from their liability and place it on you.
Deal Expert
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Jun 14, 2003
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The chance is Visions.ca is registered as a Federal Corporation. Hence, it needs to collect sales tax of all province.
Otherwise, I can open a Visions.ca in Ontario and they can't do anything about it.
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Deal Expert
Jan 7, 2002
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Waterloo, ON
gman wrote: The chance is Visions.ca is registered as a Federal Corporation. Hence, it needs to collect sales tax of all province.
I thought the test was whether they had a retail presence in Ontario. If they don't (and AFAICT they don't) then they're not obligated to collect/remit PST on behalf of Ontario. In that situation they're doing themselves a disfavour by collecting because it puts them at a competitive disadvantage to other online merchants who operate outside of Ontario. Vision's policy is even more ridiculous considering they're HQ'd in Alberta where there's no PST for anyone.

In any case, this will soon become moot once Dalton and Jimbo impose the HST on all Ontarians.
veni, vidi, Visa

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