Question on Income Tax Credits
Hello there,
I had one question regarding ITC. I am a seller located in Ontario. I pay 13% GST/HST on the goods I purchase for reselling. My question is how do I calculate my ITC when my product is being purchased by a customer located in a province where there is less than 13% GST/HST?
For example is someone from Alberta buys my product where there is 5% GST/HST, he paid 5% of my product price whereas when I am buying the product wholesale I paid more than what the customer in Alberta paid. For example Alberta customer paid $2.10 GST/HST on the product whereas I paid $2.70 on the wholesale price of the product.
Thanks
Question on Income Tax Credits
Hello there,
I had one question regarding ITC. I am a seller located in Ontario. I pay 13% GST/HST on the goods I purchase for reselling. My question is how do I calculate my ITC when my product is being purchased by a customer located in a province where there is less than 13% GST/HST?
For example is someone from Alberta buys my product where there is 5% GST/HST, he paid 5% of my product price whereas when I am buying the product wholesale I paid more than what the customer in Alberta paid. For example Alberta customer paid $2.10 GST/HST on the product whereas I paid $2.70 on the wholesale price of the product.
Thanks
2 replies
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The sales tax rate you paid for a product has nothing to do with sales tax rate your customer paid.
An ITC is an ITC -- if your ITCs are more than what buyers paid in sales taxes, you would get a refund from the government when you file.
