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Is tax charged in provinces outside of home province?

Expert: Jim Innes

Debbie asked:

We are a software development company that enables customers to use our software through a hosting service that we have. We do not sell direct but rather through a re-seller. We are in Ontario, do we have to charge PST in other provinces?

Jim Innes answered:

Given that you are selling your software to a reseller you do not have an obligation to collect PST. You should however ensure that each of your customers provide you with a PST registration number.

The application of PST to the final user will depend on the nature of the software provided and the province. Generally software and related services, other than custom software will be subject to PST in the provinces that have that type of tax.

About the author

Jim Innes is a Partner at Innes Klayman LLP, Chartered Accountants.

He can be contacted at: 416-590-1728, Ext 314.

His bio page can be viewed here:

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