First off, let me tell you that I am a native Vermonter, which makes me American and immigrant to Canada. I am a bit confused about the sales tax situation as it pertains to out of province purchases and hoping you can help clarify this.
In the states, if we order something, say from Cabelas; we pay the applicable sales tax in accordance to the laws of the state where we live. For example, if I live in Vermont, I pay Vermont sales tax.
Here in Quebec, if I buy something, say a firearm, at a local dealer I pay both federal and QC provincial sales tax. However, if I buy this firearm from a dealer outside of QC, say AB; I only pay federal sales tax. This seems kind of strange to me, so I'm questioning it, most likely just due to where I grew up. Is this true?
Mustad
We have different tax laws for almost every province, here in Alberta we only pay the one tax, where in BC you have the gov tax and the BC tax.Newfoundland you have the Gov tax ,Newfoundland tax andone other tax that I'm not sure of what it's called. Just depends on what Province your in to see what taxes you pay.So yes it is true,it does matter what Province you reside in.
Youngfart [:@]
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So, when I order something to have it shipped to me, I pay the sales tax associated with the province from which I'm ordering something and NOT the sales tax associated with the province in which I live? i.e. I order a gun from AB, I pay AB tax, not QC tax?
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RE: Strange Tax Laws...
Quote:
ORIGINAL: mustad
Hi,
First off, let me tell you that I am a native Vermonter, which makes me American and immigrant to Canada. I am a bit confused about the sales tax situation as it pertains to out of province purchases and hoping you can help clarify this.
In the states, if we order something, say from Cabelas; we pay the applicable sales tax in accordance to the laws of the state where we live. For example, if I live in Vermont, I pay Vermont sales tax.
Here in Quebec, if I buy something, say a firearm, at a local dealer I pay both federal and QC provincial sales tax. However, if I buy this firearm from a dealer outside of QC, say AB; I only pay federal sales tax. This seems kind of strange to me, so I'm questioning it, most likely just due to where I grew up. Is this true?
Thanks,
Right now if you order mail order there isn't a sales tax charged unless you live in the state where the mail order is coming from. I live in Vt and when I order from Cabelas there isn't a tax. If I order from Gardiners Supply (in VT) there is a sales tax. I understand the various states are trying to get the mail order houses to start to charge state tax.
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My bad CI. Vermont was a bad example then. But what I'm trying to say is that in the states, for the most part, you pay the tax associated with where you live. Here in Canada, my understanding is it's the tax associated with where the company is. This is what I'm trying to figure out.
By the way CI, under VT tax law, you as a Vermonter are obliged to pay Vermont sales tax on any products purchased outside of Vermont and shipped in. Just because the company; mail order or other doesn't charge you this amount, does not mean you don't have to pay. There are companies that will charge your sales tax automatically depending on where you live.
If people living in Hartford, cross the border and buy some stuff in West Leb, NH and come back; they were not charged sales tax; but legally they are required to pay the VT sales tax on items brought back into the state.
Again, my understanding is that is not the case here in Canada and that the tax you pay is based on where you are buying the products from and there is no other obligation.
It is true that out of province purchases don't get taxed but by law you are supposed to report the purchase to your own provincial government and offer to pay them the tax. Nobody in the history of Canada has ever done this...
The GST is even more bizarre. If you buy something in the US you are charged GST in Canada even though it wasn't purchased here. However if an American buys something in Canada and takes it home they get the GST refunded. So despite the name, the government isn't really taking Canadian goods or services, its just taxing Canadians for spending money.
Strange Tax Laws...
