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Troubleshooting
Hi there,
I’m sorry, but the answer you received from Kim is completely incorrect. Couriers that are making over 30k per year are suppose to register for a GST number and Collect GST/HST in your situation.
Skip The Dishes, or any similar companies are NOT freight carriers, therefore interlining is not factored here. Skip the dishes is a marketing company, and their delivery charge is no different than a delivery charge that a company like The Brick would attach to the sale of a bed, if the person wanted to get it delivered. Whichever courier company has a contact with the brick to delivery that bed would ABSOLUTELY be required to charge GST to The Brick, as they would be responsible to pay the highest taxable amount charged for the courier fees.. you follow?
A situation where interlining would be considered, and the GST would be zero rated would be if a registered freight carrier (IE FedEx, Purolator or UPS) would be if the courier company that was billing The Brick for their courier services hired a sub-contractor to deliver it for them.. IE..
The Brick has a contact with FedEx to deliver beds for $100.00 + $5.00 GST (Total $105.00) Then hires Bobs Courier to deliver the bed for $80.00. Then Bob’s courier would not be required to charge the $4.00 GST because the brick already collected the $5.00.
Given that companies like Skip only charge their customers up to $5.00 for delivery there is absolutely No Way they could get away with zero rating the courier fees that they are paying out that are much more than that usually.
Hope this helps!