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No Tax on Shipping for Food Orders in Ontario

In summary, there is a difference in tax for shipping in different states and countries. In Ontario, Canada, shipping is not taxed if the order only contains food items, as there is no tax on food in Ontario. However, if the order contains at least one taxable item, the tax on the shipping will change to match the tax rate for that item. This may vary in different states and countries, so it is important to check the tax laws for the specific location where the items will be delivered.
kcjodih
Gold Member
3,408
Our shipping is taxed here in Ontario. I just entered an order with direct shipping for 3 spices (which aren't taxed - no tax on food, only GST on cookbooks) and nothing else and there was no tax charged. The shipping was $2.50 more but the shipping wasn't taxed. Any idea why that would be? If I order just a cookbook or just a citrus peeler and nothing else it would have been but since there wasn't any tax on the order, there was no tax at all!! :confused: I just tried the order again with nothing at all but a citrus peeler at $1.50 and it charged shipping of course and tax on both the peeler and the shipping like it should, so why no tax on shipping when the order is food only and not taxed? :confused::confused:
 
Hi!

I can't speak about Ontario -but in NJ - tax is only on shipping if the order contains at least one item that is taxable. So if the order is only food (no tax on food in NJ) there is no tax on the shipping.

HTH -
Lisa
 
  • Thread starter
  • #3
Hmmm, maybe that IS the reason here as well. Hopefully a fellow Ontarian or at least Canadian will way in too. Thanks Lisa!
 
I'm in NJ as well. And, yes if you are only shipping food the shipping is not taxed. That happened on my first show....I was like WTH? LOL
 
NC tax is 6.75% and food tax is 2%. If someone only buys pantry items her shipping is taxed at 2%. If she buys even just a seasons best the shipping tax changes to the 6.75%. That's just how it's set up - your customer gets the benefit!
 
Here in the US it varies from state to state and gets charged based on the state of delivery, the same goes for sales tax. I live in NY and just had an outside order from a party go to Mass. Our local tax is 8%, theirs is only 5%. NY charges 8% tax on S&H, Mass charges none. On consultant corner you can look up the taxes for where items are being delivered. I have no idea how Canada does it.
 
Makes me grateful to live in a state that doesn't tax the shipping at all!
 
Ditto Allison... I love being able to tell my customers that!
 
Our state charges tax on shipping also. I had a guest at a show get quite argumentative with me about this. She acted like it was me. I told her it was a state law and there was nothing I could do about it. She still argued that others did not do this. ??? I asked who and she wouldn't get specific...

We don't charge tax on food, so I am wondering if it is the same way here (no tax on shipping either for food only order). Atleast if it happens, I'll know what is going on! Very interesting.
 
  • #10
kam said:
Our state charges tax on shipping also. I had a guest at a show get quite argumentative with me about this. She acted like it was me. I told her it was a state law and there was nothing I could do about it. She still argued that others did not do this. ??? I asked who and she wouldn't get specific...

We don't charge tax on food, so I am wondering if it is the same way here (no tax on shipping either for food only order). Atleast if it happens, I'll know what is going on! Very interesting.

It's so frustrating when people argue over the tax on shipping. It's only 26 cents! (in PA it's 6% tax) I wonder if the other DS companies are doing it, just adding it in the cost somehow and the customer doesn't realize? I would think if it's a law, it's a law, and it would have to be clearly marked, right?! :confused:
 
  • #11
babywings76 said:
It's so frustrating when people argue over the tax on shipping. It's only 26 cents! (in PA it's 6% tax) I wonder if the other DS companies are doing it, just adding it in the cost somehow and the customer doesn't realize? I would think if it's a law, it's a law, and it would have to be clearly marked, right?! :confused:

LOL, I know. Like we're gonna run away with their extra .26 or so cents :)
 
  • #12
babywings76 said:
It's so frustrating when people argue over the tax on shipping. It's only 26 cents! (in PA it's 6% tax) I wonder if the other DS companies are doing it, just adding it in the cost somehow and the customer doesn't realize? I would think if it's a law, it's a law, and it would have to be clearly marked, right?! :confused:

I wonder this too - I've had other DS consultants who have questioned my charging tax on shipping - one even accused me of doing it illegally. I just tell them that it's not me - it's the state of Michigan who mandates that charge, and it would be illegal for me to NOT collect it. (it's 6% here too.)
 
  • #13
babywings76 said:
It's so frustrating when people argue over the tax on shipping. It's only 26 cents! (in PA it's 6% tax) I wonder if the other DS companies are doing it, just adding it in the cost somehow and the customer doesn't realize? I would think if it's a law, it's a law, and it would have to be clearly marked, right?! :confused:

I am thinking the same thing, that other DS companies might add it "differently". So maybe that's why this lady was so upset. But, yes, I would think it should be clearly marked.
 

What is "No Tax on Shipping for Food Orders in Ontario"?

"No Tax on Shipping for Food Orders in Ontario" is a government initiative in Ontario, Canada that exempts the shipping fees for food orders from provincial sales tax. This means that customers will not be charged any tax on the shipping portion of their food orders.

Who is eligible for this exemption?

All food businesses that are registered and located in Ontario are eligible for this exemption. This includes restaurants, grocery stores, and other food retailers.

What types of food orders are included in this exemption?

All types of food orders, whether made in-store or online, are included in this exemption. This includes both pickup and delivery orders.

Are there any restrictions or limitations to this exemption?

Yes, there are a few restrictions to this exemption. The food order must be for consumption and not for resale, and the shipping fees must be clearly stated and separate from the cost of the food. Additionally, the exemption only applies to the provincial sales tax and not the federal goods and services tax.

How can I ensure that I am not being charged tax on shipping for my food order?

If you are a customer, you can check your receipt to see if there is any tax charged on the shipping portion of your food order. If you are a food business, you can ensure that your shipping fees are clearly stated and separate from the cost of the food, and that you are registered and located in Ontario. You can also consult with the Canada Revenue Agency for more information.

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