Tax issues when selling to US from Canada?

How are Canadian Online sites handling US taxes when selling to consumers in the US?

I have been told by 1 customer of mine that they have to deal with individual tax rates for each state and county when they ship to the US. Although they are selling items to companies as opposed to consumers.

Is anyone charging state taxes and submitting them to IRS.

Also, how are Canadian Online sites handling taxes from province to province when selling to consumers? ie: my online customer is in Ontario and would be selling to all provinces. The volume will be low, maybe $750 month. Should she just ignore PST and just charge GST?

Supposedly if PST is not charged then it is up to the purchaser to submit the tax. But if the purchaser does not submit, then government goes after both purchaser and seller if there is an audit.

You are not responsible for collecting US taxes. If a US citizen purchases something from Canada that requires the collection of a state sales tax then the purchaser is responsible for submitting the tax. You’re off the hook. If you have nexus in the state (an office, warehouse, etc) then that is different.

Don’t know about Canada tax.

For Canada you have to charge taxes for the provinces that you have a location in. In your example you would charge GST + PST for items shipped in Ontario and GST only for the other provinces (assuming you only have business locations in Ontario).

As with the united state if I buy something from an other province I am responsible for paying the provincial tax. Also, if I buy something from the US or any other country, Canada customs will charge GST and maybe PST (I’m not sure) when I import the product.

Be sure to check with an accountant to be sure of the proper way to go.