Tax Treatment of Website Development & eCommerce Sales
Tax Treatment of Website Development
Our friends at BDO have written a great article about the tax treatment of website development. We figured our clients in Kelowna and area would appreciate reading about how CRA divides up the various hardware, software, and labor involved in your next website redesign.
In today's "wired" world, it is now generally expected that businesses have a website. Whether your business is selling goods online or whether the website is strictly a resource for information about your product or service, ensuring that you have an online presence for customers to either make purchases or browse and learn more about your business is an essential requirement in an increasingly competitive marketplace.... While there are no special tax rules with respect to website development costs, the CRA has issued some administrative guidance to assist taxpayers...
eCommerce Sales in Canada: what does CRA say about charging sales tax when selling goods online?
Another question our Kelowna Marketing Company is asked all the time is what sort of tax needs to be charged when selling online through a website. This affects how GST and PST are handled in your online product catalog, the shipping and handling rates, and how everything is displayed, formatted, and recorded during the transaction. BDO has a good article for Canadian business owners, and web marketers who manage their websites.
Over the past several years, the sale of goods over the internet has become something that both vendors and consumers have grown accustomed to. This is largely because many businesses operate on-line stores and have the capability of delivering goods right to the door of their customers. While some retailers offer goods for sale over the internet in addition to maintaining physical stores, others simply operate solely on-line. No matter what type of retailer you may be, you will likely agree that it is necessary to understand the Canadian sales tax implications of transacting on-line with customers in Canada. On-line retailers selling taxable goods across Canada need to be aware of the various types of sales tax that apply within our country...