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How Sales Tax Affects Reselling Profit

1 min read · Profit and numbers

GST/HST on your purchases and sales changes your real margin. Here is the general picture.

On purchases

You pay GST/HST and, in some provinces, PST when you buy stock.

If you are registered

Registered businesses can generally claim back GST/HST paid on inventory as input tax credits, and must charge it on sales.

If you are not registered

Tax you paid is part of your cost.

Marketplaces

Marketplaces may collect and remit tax on some sales. How this applies depends on your registration.

Get advice

Tax rules are specific. Confirm your situation with an accountant or the CRA.

General information for resellers, not financial, tax or legal advice. Marketplace fees and policies change; check the current rules before you buy.

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