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Taxes on plowing in Ontario

Discussion in 'Bidding & Estimating' started by ontario026, Jan 2, 2009.

  1. ontario026

    ontario026 Senior Member
    Messages: 228

    Am I correct in saying that 5% GST is chargable on snow plow service in Ontario? And NO 8% PST?

  2. Bruce'sEx

    Bruce'sEx Senior Member
    Messages: 873

    That is Right
  3. Correct but I *think* if you are salting you can charge the PST because you actually sold them a product that you paid PST on when you bought it.
  4. Case580M

    Case580M Senior Member
    Messages: 215

    Here in the state of Washington ALL labor is taxed no matter what it is.

    Have your car fixed or a house built and full tax on entire amt. 8.6% too

    Not only that when you sell your house no matter if at a loss the state takes 2% of sale price.

    So you buy a house for 500k then sell it for 400k the state still takes

    Car sales to private party to private party are taxed full rate (8.8) at amt State says its worth (very inflated value) not on what you actually pay for it. You pay 10k for car state says its worth 22k you pay tax on 22k
  5. I only dream of paying low taxes like that again Case580M

    Here we pay 13% tax....
  6. Bruce'sEx

    Bruce'sEx Senior Member
    Messages: 873

    I don't think charging pst for salt is worth it, unless your actually reselling salt to them, your actually just selling the salting as a service, so just charge gst, and make sure you cover your cost for salt, gst and pst on your buying of it.
  7. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,194

    That's what we do.
  8. Case580M

    Case580M Senior Member
    Messages: 215

    DWD, So your sales tax is 13%? On labor too?

    Arizona there was no tax on labor or on your home when you sold.

    Cannot imagine paying 13% sales tax
  9. We have GST (Goods and Service Tax) and PST (Provincial Sales Tax) totaling 13%

    As far as labor if you mean taxing employees we are more around 21% This would be similar to you paying your state tax off your pay checks. We pay Income Tax, Employment Insurance Tax and Canadian Pension Plan tax. (EI and CPP are not really a tax, moreso forced investment)
  10. Neige

    Neige Sponsor
    Messages: 2,215

    Here in Quebec we have to charge both taxes. I do not understand why you would add your cost of gst and pst on your buying of it, when as a company you get all your sales taxes reimbursed.
  11. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    We charge the GST, but no PST. The PST is worked into the price and gone forever. Your right Paul, and I have had this arguement with my accountant, and suggested we break down the invoice so we can recover the PST paid, but he suggested it was too much paperwork, and just another thing the CRA could scrutinize and not worth the agravation. I still dont get why we dont do it.
  12. Oasis

    Oasis Senior Member
    Messages: 273

    You should only be charging PST if you are actually selling them salt. Most of us do not sell salt. We sell salting service. X amount per lb/ton applied. This is a service under the GST rules. So unless you are picking up skids of salt and selling the bags to a customer stick with GST only. Technically speaking even if you were selling salt to your customers you wouldnt legally have to charge PST because the nature of our business is service and we are not primarily retailers. I dont charge PST in the summer either when we sell plants. We dont stock them and are not a retailer. We purchase them on behalf of customers and then bill back to the customer. We then charge a service fee.

    Hope this helps.