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Tax on products

Expert: Ram Madhavan

Makari asked:

I am in the process of starting an online Web-To-Print business. I will be selling printed on paper products to customers in Canada and the United States. I am located in Toronto, Ontario. I would like to know how much Tax do I charge to customers situated in Ontario, the rest of Canada and the United States?

Ram Madhavan answered:

Generally, exports to the United States of paper products will be zero-rated for GST purposes. In other words GST will be applicable but at the zero fate. This way the ability to claim input tax credit on GST paid on input costs to acquire/produce the goods will be preserved. All supplies within Canada will be subject to 6% GST. In addition, supplies to customers located in New Brunswick, Nova Scotia or Newfoundland and Labrador will be subject to 14% HST.

Regarding Ontario retail sales tax ("RST"), generally no RST will apply on supplies to customers located outside the province. Supplies to customers within the province of Ontario would be subject to RST, except where the recipients provide valid purchase exemption certificates.

Please note that the above descriptions are very general and do not cover all situations and circumstances of specific businesses and suppliers. Reference to professional tax advisors is highly recommended in all cases.

About the author

Ram Madhavan is the Senior Tax Manager at Mintz & Partners LLP.

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