« Choosing A Domain Name | Home | Business Or Hobby? »
Internet Sales Tax
By SherryD | June 24, 2009
Topics: sales tax info |
No Comments Yet, Your Thoughts Are Welcome »
Yes, I know, I said the dreaded “T” word.
Doing business on the Internet is supposed to be fun, right? However, even fun has a price attached. In this case the price is called PST, GST or HST here in Canada, better known as Sales Tax.
Many online businesses do not include sales tax on internet purchases that are made. While this is a standard practice, this practice does not exempt those businesses from having to account for internet sales tax on sales they make, should those sales meet the criteria set out by the various levels of government.
The fun definitely comes to a grinding halt if the tax department determines that regardless of the fact that you did not charge tax, your business is still required to submit internet sales tax on those transactions which meet their criteria. Nothing like having a huge tax bill or audit. Ignorance, unfortunately, is not considered to be an excuse.
I don’t claim in any way, shape or form to be an authority on the ins and outs of when, and which transactions, fall under headings that require sales tax on internet purchases to be submitted, or when Use Tax comes into play. That is the job of the accountants and tax experts and is an area where I encourage you to seek competent, professional advice from experts who have knowledge of accounting for an online marketing business.
In researching this topic, I have come across a couple of posts, which should give you a starting point. They are:
1. Sales Tax on the Internet by Attorney Richard Stim
2. Ecommerce and PST by Susan Ward, About.com
It is worth the cost of setting your business up properly from the beginning. Personally, I would rather know up front if my business could be hit with an internet sales tax bill and prepare accordingly.
To Your Success,
SherryD
http://www.wbobr.com
MATERIAL CONNECTION DISCLOSURE:
You should assume that the authors of information provided on this site have an affiliate relationship and/or another material connection to the providers of goods and services mentioned in this information and may be compensated when you purchase from a provider. You should always perform due diligence before buying goods or services from anyone via the Internet or offline.
Comments
All comments are monitored.
Please only leave comments that are relevant.
Thank you!