Does Printify charge tax on local sales in Canada?
As of April 2022, Printify has updated its tax policy for sales within Canada, ensuring compliance with local tax regulations. This guide aims to clarify how taxes are applied to your orders and how you can manage them effectively.
Tax Application on Canadian Sales
For all items printed and shipped within Canada, local taxes will be applied. The tax rate is determined by the destination address of each order, reflecting the varied tax rates across provinces.
Product Taxability
General Rule: The majority of items available through Printify are subject to Canadian taxes.
Exceptions: Certain product categories may qualify for exemptions from provincial sales taxes. It's important to note, however, that the shipping fee is taxable at the rate applicable to the order.
Tax Exemptions and Reclaims
For Registered Taxpayers:
Exemptions: If you're registered as a taxpayer in specific provinces, you might be eligible for tax exemptions. To take advantage of this, you must provide Printify with your tax registration details.
Tax Reclaims: For those registered as taxpayers in Canada, it's possible to reclaim taxes paid on purchases through your tax returns, depending on your province's regulations.
Invoice Options for Greater Flexibility
Printify introduces more flexibility in how you receive invoices, aiding in your tax management and record-keeping:
Individual Invoices: Opt for an individual invoice with each order for detailed tracking.
Monthly Summary: Choose a summary invoice for a consolidated monthly overview.
Learn more about your invoice options here.
Ensuring Compliance and Simplifying Tax Returns
Regardless of your chosen invoice format, rest assured that every invoice will detail the full cost and tax information for your orders. This transparency facilitates easier management of your tax obligations and simplifies the process of claiming tax returns where applicable.