Last modified: July 17, 2024
Canadian dispensaries: Sales tax
Note:
This content is intended for general informational purposes only and should not be construed or relied upon as tax, legal or financial advice, or applicable to your particular situation. You should consult with your own tax advisor regarding your tax obligations. The views expressed in any of these resources do not represent the views and are not affiliated with or endorsed by Fullscript in any way.
Sales tax
Fullscript maintains 100% responsibility for the collection and remittance of retail tax in all provinces of Canada (HST/GST/PST/QST).
Additionally, Fullscript pays passthrough tax to our practitioners when provided a GST/HST registration number as the CRA deems the transfer of profit margin to be a separate and taxable event. If you are registered to collect GST/HST, you have a responsibility to provide your registration number to Fullscript and ensure the appropriate taxes are included in your payouts.
The CRA has advised that the passthrough tax rate should be based on Fullscript’s location as practitioners are providing Fullscript with the service of their patients. Therefore, store owners that provide us with their business/registration number will see taxes included in their payouts at a rate of 13% (Ontario HST).
Collection of GST/HST on payouts
Given that Fullscript sits at the center of transaction administration, we have taken it upon ourselves to help you stay compliant. By providing us with your business number, as shown below, our system will know that you require us to pay taxes on these transfers as if you were invoicing us. Simply remit these proceeds to the CRA through your regular GST/HST filing process.
If you’re registered to collect GST/HST, enter your 9-digit business number on the Dispensary info page in Dispensary settings to opt-in to tax payments (13%) on future payouts.
Tip!
Check out the CRA’s website for more information on GST/HST eligibility and how to register.
Retroactive tax payment requests
If payouts were transferred before adding your business no. and you were registered to collect GST/HST at the time payouts were deposited, a retroactive lump-sum payment can be issued to you!
You must provide an invoice that includes the following:
- Business number (GST/HST registration number)
- Business name affiliated with business number
- All payout amounts with respective transaction date
- Tax amount due for each payout on the invoice
- Total tax due
| Mary Roberts Clinics Business No.: ##-####### | |||
|---|---|---|---|
| Date | Payout total | Tax rate | Tax amount |
| May 15th, 2019 | $100.00 | 13% | $13.00 |
| May 22nd, 2019 | $50.00 | 13% | $6.50 |
| Total | $16.50 | ||
Once completed, the invoice can be emailed to us at support@fullscript.com.