How Canadian Tax Laws Apply to Free Geek

This is a brief overview of how Federal and Provincial Tax Laws apply to the Free Geek model. General Sales Tax(GST) is federal, and the Provincial Sales Tax(PST), is well, Provincial. I encourage other Canadians to add to this, as I will not complete it for all areas. Maybe one day, if I have the spare time.

GST

Currently sits a 6%. Only mandatory to collect if your business makes over 30K a year. You can collect it if you make less however. FG Vancouver has chosen to do so to get into the habit of doing it early.

GST is applied to monitor fees. FG Vancouver charges 9.44 for monitor fees, resulting in .56 cents of GST. We simply tell people 10 dollars GST included. This is important to put on the invoice for businesses that might drop off a large quantity, they need to know for their accounting.

GST must also be applied to all used computer sales. Yes they get you twice.

PST

The percent varies from Province to Province.

British Columbia

Currently(2007) at 7%.

We must charge it on all used computer sales.

Does not apply to monitor fees, or on site data destruction fees.

Info lines -
604-660-4524(in Vancouver)
1-877-388-4440 (rest o' BC)