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Wholesale & eBay Forum Drop Shippers & Drop Shipping Do I need sales tax and business ID's in Canada?

 

Do I need sales tax and business ID's in Canada?


amandamagyar
Full Member
  • Posts: 1
  • Joined: 23 Sep 14
  • Karma:
26 Sep 14 06:03:36 pm
Hi there!

I am starting a dropshipping business and I am located in Canada.
I will be shipping my items to Canada and the USA, possibly to other international locations as well.

I have read several articles about what is needed such as a tax number and business ID
However, I am not sure if these are only required if you are located in the states, or will you need both of these if you are located in Canada as well?

Any information is appreciated thank you!


rachel_ramos
Site Admin
  • Posts: 442
  • Joined: 10 Jun 14
  • Karma:
29 Sep 14 02:10:34 am
Hello Amanda,

Most states have a sales tax if you are in the US and Canada, but there are a couple that don't. If you reside in one of these states just let the wholesaler know and they may have a different form or requirement for you to complete. You will need a tax ID If you sell online to make money .

You need a seller's permit so you can charge and collect taxes, which you'll pay to your state government later. If you want to purchase goods wholesale from a US supplier (and you are also based in the US), you need a seller's permit to buy wholesale sales tax free.

It's always pretty important to ask your local government if you would need both a tax ID number and a business ID. Although it's not necessary for SaleHoo members to have a seller's permit and a registered business for them to use many of the suppliers in our directory, we strongly recommend you get one as it will give you access to even MORE wholesalers.


Hope this clarifies! :)


 

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