Robertson Sharpe - Retail Sales tax, Ontario

Ontario Retail Sales Tax

If you are carrying on business in Ontario and are selling a taxable tangible product or service you are required to register for Retail Sales Tax. Unlike GST there is no minimum revenue threshold.

You are not required to obtain a vendor's permit if you only sell tax-exempt goods, you provide only tax-exempt services or you are a manufacturer or wholesaler and do not make retail sales.

For the vast majority of businesses Retail Sales Tax poses little difficulty. It is, however, essential that you correctly determine the tax status of services and or goods that you may provide.

Tax-Exempt
Tangible Goods	Services
food products (except candies,snack foods,& soft drinks) children's clothing books & newspapers prescription drugs and medicines goods purchased for resale (valid Purchase Exemption Certificate provided to vendor) real property production machinery & equipment bought for use by a qualifying manufacturer fixtures attached to real-property installed by vendor at time of sale	dry cleaning professional services (legal, accounting, consulting) carpet & upholstery cleaning veterinary care & animal grooming labour to install or repair real property or fixtures computer assistance or support provided in person, by telephone, electronically or by e-mail (but not hands on) data management, testing & diagnostic services & disaster recovery services manual data entry

The above lists are by no means exhaustive or all-inclusive in scope. IT consultants and web developers need to pay particular attention to the requirements of the Retail Sales Tax Act as there are a number of situation where service will be deemed as taxable.

It is highly recommended that you retain the services of a professional familiar with your individual situation and the applicable legislation to ensure that you are complying the legislation and regulations.

If you are an IT consultant or web developer please click on this link for important Ontario Retail Sales tax information (pay particular attention to bulletins 650 and 651)

For more information or to arrange an initial meeting please call (613) 727-3845 or e-mail: info@robertson-sharpe.com

The information presented on this Site should not be construed as legal, tax or accounting advice. You should consult with Robertson Sharpe or other professional advisors familiar with your particular factual situation for advice concerning specific tax or other matters before making any decision.