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Do I need to charge taxes for cleaning/laundry services?

By John R Mott |

D. McDonald asked:

For a cleaning/laundry business, I did not charge GST or PST and now have realized that I have to. Subsequently I owe the taxes. Do I have to charge PST and GST (HST) on these services, and if so how much? I don't know if any businesses are exempt for either of these.

John R Mott answered:

The only provinces that still have a sales tax are PEI, Quebec, Manitoba and Saskatchewan. Unless you live in one of these provinces, you do not have to worry about PST. Provincial sales taxes generally only apply to the sale of goods, not services. If you do live in one of these provinces, it is unlikely that PST applies to your cleaning and laundry services, but you should confirm with your provincial sales tax authority to be sure.

If your annual sales remain below $30,000, you are not required to register for the GST/HST, nor collect it from your customers. If this is not your situation, then you must register for the GST/HST and you must collect it from all your customers. The rate that you charge depends on the province where you carry on business, e.g. the rate on Ontario is 13 per cent; the rate in B.C. is 12 per cent.

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