When a buyer of a domain name is located or has a business in Canada, the sale of a domain name is subject to the applicable tax (HST/GST).
The buyers location(province or territory) directs the value of the taxes. The buyer must inform himself and verify the tax rate in the province or territory “he/she” is a resident, or ”his/her” business is registered. Tax rate are subject to changes.
Below is the info for the applicable tax rates by province and territory
HST:
13% – New Brunswick, Newfoundland-Labrador, Ontario
15% – Nova Scotia
GST:
5% – Alberta, British Columbia, Manitoba, North West Territories (NWT), Nunavut, Prince Edward Island (PEI),
Quebec, Saskatchewan, Yukon
The buyer can recover the HST/GST as an “INPUT TAX CREDIT” when he has a business number.
Foreign buyers are exempt from taxation.
However to buy (.ca) domain names , the buyer must meet the “canadian presence requirements”.
