Karen asked:

I am looking to start a wedding decor business what taxes am I required to charge my customers for the decorating services they require for the wedding.

Hank Bulmash answered:

The taxes you must deal with are sales taxes, GST and provincial sales tax.

GST must be charged on both goods and services. PST is generally charged only on goods.

So if you buy inventory and resell it, you should register for PST. And you should register for GST in any case, although businesses that gross under $30,000 per year are not required to register for GST.

In Ontario, PST and GST will be harmonized in July 2010. At that time the harmonized tax will become the only sales tax in Ontario.

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