This article explains the types of sales taxes in Canada and how to register for tax accounts. It also explains how Canadian businesses can apply for tax exemptions when purchasing from Gelato.
Canadian Sales Taxes
Canada has four different types of sales taxes:
Provincial Sales Tax (PST)
Quebec Sales Tax (QST)
Goods and Services Tax (GST)
Harmonized Sales Tax (HST)
For more information on which taxes apply in each province, see Sales Tax Rates by Province.
Registering for a Tax Account
To charge and collect sales tax in Canada, you need to register for an account with the appropriate tax agency. The requirements for registration vary depending on the type of tax and the province in which you are operating.
GST/HST
You must register for a GST/HST account if your business makes taxable sales or leases in Canada and does not qualify as a small supplier. A small supplier is defined as a person whose total revenue was equal to or less than $30,000 in a single quarter or over the last four consecutive quarters.
To register for a GST/HST account, visit the Canada Revenue Agency website.
If you are a digital economy business, you can find out if you need to register for GST/HST by completing the questionnaire on the Canada Revenue Agency website.
PST
All businesses operating in British Columbia, Saskatchewan, and Manitoba must register for a PST account in addition to a GST account. For PST registrations, please visit the website of the applicable province relative to your business location and activity.
QST
Most businesses operating in Quebec must apply for a QST account as well as a GST account, regardless of the taxable nature of their sales and if the business is not qualified as a small supplier. For more information, visit the Revenu Québec website.
Tax Exemptions When Purchasing from Gelato
If you are a Canadian business, you may be exempt from paying certain taxes when purchasing from Gelato.
QST Exemption
If your business is registered under the General QST system, you are exempt from paying QST on your Gelato purchases. To claim your exemption, provide your valid TQ registration number to Gelato. You can provide this number through the Resale certificate wizard, which can be accessed through the following link in the Gelato Dashboard: Where do I upload my resale certificate in the Gelato Dashboard? Once your registration number has been reviewed and accepted, the sales tax calculations will be adjusted accordingly.
PST Exemption
If you are purchasing goods for resale in a jurisdiction that requires PST, you may be exempt from paying PST. To claim your exemption, provide your valid PST registration number to Gelato. You can provide this number through the Resale certificate wizard, which can be accessed through the following link in the Gelato Dashboard: Where do I upload my resale certificate in the Gelato Dashboard? Once your registration number has been reviewed and accepted, the sales tax calculations will be adjusted accordingly.
If you are not registered for a PST number in British Columbia but will be making exempt purchases for resale, return the completed form to claim an exemption: https://www.dandh.ca/pdfs/BC_TaxExemption.pdf.
Resale Certificates
All resale certificates should be addressed to:
Gelato ASA
625 Massachusetts Ave
Cambridge, MA 02139
Provinces Where Gelato Charges Tax
Gelato charges and collects the following taxes:
QST/PST: Quebec, Saskatchewan, Manitoba, and British Columbia
GST/HST: Ontario, Prince Edward Island, New Brunswick, Nova Scotia, Newfoundland and Labrador, Alberta, Northwest Territories, Nunavut, and Yukon
Disclaimer: The information provided in this article is for informational purposes only and is not intended to be legal advice. Please consult a tax professional for specific tax guidance.