Company Drop Shipping

Am I required to charge customers GST or RST if I drop ship my products outside Canada?

Duy asked:


More details:
- main market is US but ocassionally Canadian as well
- not a small supplier in terms of revenue
- drop ship supplier located in China
- online business located in Ontario

Any links to sources will also be appreciated.

Thank you.

Troy

Tags: Canada, Drop Ship, Revenue Drop

This entry was posted on Tuesday, January 13th, 2009 at 8:43 pm and is filed under Canada. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Am I required to charge customers GST or RST if I drop ship my products outside Canada?”

1. Stace29 says:

   January 16, 2009 at 3:10 am

   Richard

   I would say no. You pay taxes for where you live it”s irrelevant where the product came from
2. neoplop says:

   January 19, 2009 at 1:21 am

   Clifford

   If you drop ship outside of Canada this is considered an export and the goods are zero-rated. You do not charge GST or RST.

   Drop-shipments to an address within Canada are different. You must collect GST and RST.

   See p. 36 of the guide below:
3. CHARLES R says:

   January 19, 2009 at 7:48 am

   Ann

   I can’t speak for goods but as a service supplier, I occasionally have to charge GST for work I’ve performed in the US. There are a number of tests for this but the one gotcha in my case was the customer has a Canadian office and my point of contact is there 2-3x per month, and we’ve met in Canada to discuss our business relationship so by the letter of the law, I’ve had to charge GST.