by Sarah
(BC)
Sales Tax Errors
Have CRA's Place of Supply Rules recently changed?
It used to be that the Place of Supply was determined by the customer's province of residence. However, I recently purchased a product online - the vendor is in Ontario and I am in BC. Their site specifically stated that only GST would be charged for purchases destined anywhere in Canada outside of Ontario, but when the order was processed I was charged 13% HST instead of only 5% GST. When asked about the tax rate, the vendor replied that the rules had recently changed, however I can't find any information about any modifactions to the laws. And to dispel any questions about who initiated the shipping, the vendor offers it on their site, charges the customer for it and uses Canada Post as the delivery method.
I am an accountant by profession and am generally quite up to date on these things, but this is news to me.
Is anyone able to give any definitive answers as to whether or not this rule did in fact change, and if so, when the change was meant to be put to practice?
Thanks!
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