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Should tax be charged at a second hand store in Ontario?

Expert: John R Mott

Racheal asked:

Does a privately-owned second hand store in Ontario have to charge tax? Or is it just an option?

John R Mott answered:

If you are asking about the HST, absolutely. The only exception is if your gross sales do not exceed $30,000 in any period of 12 consecutive months. Once your revenues reach this level, you are required to register for the HST and collect it from your customers from that time forward.

This is not an issue to blithely ignore. If you have not been collecting HST when you should have, an audit could be financially devastating. It is too late after the fact to collect HST from your customers.




About the author


John Mott is a chartered accountant and tax specialist with a private practice in mid-town Toronto. He provides tax, accounting and advisory services to individuals and small businesses. He may be visited online at: johnmott.com.

 
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