I'm developing an eCommerce site for a client whose shop is based in Ontario, Canada. They sell books, DVDs and music CDs to all provinces in Canada. After reading up on Canada's sales-tax system, the setup that my client has been using seems inconsistent with what I've learned so far.
Depending on the province or territory in which you operate your business, you need to collect either:
- A combination of GST and PST
- GST only
However, my client has been charging both GST and HST for all provinces, based on what the product is, as follows:
- Alberta - Books (GST 5%) - CDs/DVDs (HST 5%)
- Manitoba - Books (GST 5%) - CDs/DVDs (HST 13%)
- Nova Scotia - Books (GST 5%) - CDs/DVDs (HST 15%)
Am I missing something here, or has my client been charging sales tax incorrectly?