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Does PST need to be charged when selling a small bag?
Expert: Hank Bulmash
Cathy asked:
I'm prepared to sell and market a product and am unsure whether or not I need to charge PST. The product is a small bag, priced at $3 per unit. I'm located in Ontario.
Hank Bulmash answered:
The Ontario sales tax is a consumption tax. That means Cathy does have to charge PST on her bags if she sells them to consumers. If she's selling to stores or distributors (who don't use them, but either retail the goods themselves or sell them to retailers), she should not charge PST.
About the author
Hank Bulmash
Bulmash Accounting Professional Corporation/CPA
Linked In: https://www.linkedin.com/pub/hank-bulmash/0/389/811