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Resale Certificate Canada?

     

andmunn

3:43 pm on Apr 24, 2006 (gmt 0)

10+ Year Member



Hello,

I'm in the process of setting up an online business (based in Canada), and I will be purchasing products from the US.

We will be "reselling" the said products (very niche based) to the Canadian market which is unfortunately under developed.

Many vendors require us to input a "resale certificate number", and I can' seem to find anything of that nature up here in Ontario?

Can anyone direct me to something like this? (I have found it for all the 48 states...not for canada).

Andrew.

CanadianDev

3:59 pm on Apr 24, 2006 (gmt 0)

5+ Year Member



Have you applied for a vendor's permit since you are reselling in Ontario? There's also the option of requresting a vendor's permit during your PST account application.

andmunn

4:04 pm on Apr 24, 2006 (gmt 0)

10+ Year Member



Hi CanadianDev,

Thanks for your quick reply. I have not applied yet for any of that. All i have done is registered my business name in Ontario (sole proprietorship), developed my website, and now "trying" to figure out what i need to do next.

I'm a little confused, because i will be buying from the US (almost exclusively), and selling throughout canada (mostly to Ontario).... and i'm confused how the tax / etc and everything works....

Please enlighten me...
ANdrew.

andmunn

4:11 pm on Apr 24, 2006 (gmt 0)

10+ Year Member



Just to follow up...

I understand once i get my business name, i Can apply for the vendor permit to remit RST (same as PST?) sales tax... I also noticed there is a "purchase exemption certificate", is this what i need?

Do i need to apply for anythign simliar for GST?

Once i have my business owernship liscence (business name), and a vendor permit, am I good to go?

And Finally, if i purchase goods from the US / Canada, should i be charged customs / taxes on these goods? Or not, becasue i will be reselling them...

Andrew.

CanadianDev

5:14 pm on Apr 24, 2006 (gmt 0)

5+ Year Member



I'll be honest with you my main business activity is not reselling so I'm in no way an expert, especially when it comes to US wholesalers.

First, you only need collect and remit GST if you will make over $30,000/annually (could be $35,000, I forget). There's no harm in collecting GST even if you know you will make under that ammount. Check out the CRA website for info on that.

[cra-arc.gc.ca...]

If you are already registered as a sole-proprietor, I would apply for my vendor's permit right away. Give them a call and they will give you your PST # over the phone and you will receive your permit through the mail a few weeks later. You can find more info on the Ontario website:

[trd.fin.gov.on.ca...]

If you are selling to outside provinces, I think you will only have to apply GST to the product, however if you based in Ontario and shipping to an Ontario address, I believe you will have no choice but to apply the PST to it.

Again, i'm no expert so I may be wrong in 100% of what I said! :)

Good luck.

andmunn

7:27 pm on Apr 24, 2006 (gmt 0)

10+ Year Member



Thanks for your topics - i understand alot more now.. One more question..

You said, if i'm selling outside of ontario (inside Canada - i.e.// to another prov), i need to collect GST...

Does this mean i only need to collct GST if i'm doing more then 30k/ year? Or do i collect it even if i'm not dong 30k/year, and then keep it for msyself (just doesn't sound right!)

Andrew.

CanadianDev

11:56 am on Apr 25, 2006 (gmt 0)

5+ Year Member



If you collect GST you must file GST even if you make under $30,000/year. Also to be clear you still have to collect GST in ontario, not just the outside provinces. In ontario you would collect GST and PST. Outside provinces just GST.

Personally I would open myself a GST account no matter what you will end up making.. just "in case". Also, it makes you look like more of a business when you do.

 

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