Some upscrupulous sellers are attempting to collect taxes on their listing. It is FRAUD if a seller attempts to collect GST or HST from a buyer when he is not legally registered by Canada Customs & Revenue Agency (CCRA). How to protect yourself?

A registered business is obligated to collect taxes on business sales. How can I verify if they are entitled to collect taxes?

Here are some simple ways to double check that you are not being scammed:

GST/HST - Every business that collects GST/HST must have a business number (BN) with the CCRA. They are obligated to do the following:

Sellers need to let customers know if GST/HST is being applied to their purchases. For taxable supplies (except zero rated supplies), you have to show either:

• the amount of the GST/HST paid or payable for the supply; or
• the price of the supply includes the GST/HST.

The seller can use cash register receipts, invoices, or contracts to inform customers, or you can post signs at their place of business. 

The seller must include their BN on their receipts, invoices, contracts, or other business papers that they use when supplying taxable goods and services.  ASK the seller for this number. It is in the following format:  nnnnnnnnnRTnnn  (n = number). If the seller says that they can't find the number or don't know it, then they most likely do not have a BN AND CANNOT COLLECT GST/HST. If they give you a BN then you can check it out on the CCRA GST registry page. For a link to the page, hit the contact button on this page and request the link from us.

What to do if you find out the seller is illegally collecting taxes ?Report them to the CCRA if they are illegally attempting collect GST/HST.

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