PST depends on the province. I believe bike parts are PST exempt in BC and recently in ON. Not sure about the rest.
GST depends on your shops gross yearly sales. If you sell less than $30,000 per year then you do not need to collect GST. Otherwise you do. If you collect GST then you must remit GST to CRA (but you get to keep some for your trouble so you actually add a couple of % to your profits).
If your shop is running on a non-profit basis then you should not have to worry about income tax (as long as you eventually spend/donate all the money). If you are operating as a for-profit entity then you will have to pay income tax on your profits.
Disclaimer: I'm not a tax lawyer! This is just info I have gathered related to my own businesses and the running of the re-cycles' non-profit shop.
Chris --- dragonfly@mac.hush.com wrote:
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Hi, Everyone. This thread is great. Your are all so knowledgable itmakes me happy. Does anyone know what the tax rules are for Canadian shops who want to raise money selling "fancy parts"? Sasha
Chris Wells (Head Mechanic & Email Handler)
re-Cycles Bicycle Co-op 477 Bronson Ave. Ottawa
re-Cycles is open 6pm-10pm Tuesdays, Wednesdays & Thursdays (for volunteering, DIY, bike & parts sales & donation drop off)
Bike sales and donation drop off also available during Cyclists' Kitchen hours: 9am-5:30pm Tuesday to Friday, and 9am-1pm on Saturday
(IMPORTANT: Please remember that while Cyclists' Kitchen will be using our shop during the day, any public bike repair, whether volunteer or do-it-yourself, is still only during regular re-Cycles hours in the evenings.)
info@re-cycles.ca http://www.re-cycles.ca/