Reporting and Remitting
Retail Sales Tax
Once you have a Vendor Permit, you will receive Retail Sales Tax (RST) "return" forms. You must complete and file all returns by the due date, even if you have no sales (either taxable or exempt) or RST to report during the return period.
RST is due at the time of sale. You calculate RST on the total amount of taxable sales charged to your customers. If you also charge the federal goods and services tax (GST) on a sale, you must calculate the RST on the total selling price before the GST.
If you make a sale to a customer and deliver, or arrange for delivery of, the goods to a place outside Ontario, you do not charge your customer RST. In this case, you must keep all shipping documents and bills of lading to support the tax-exempt sale. If a customer takes delivery of the goods in Ontario, then you must charge RST.
You must complete and file all returns by the due date, even if you have no sales (either taxable or exempt) or RST to report during the return period. Simply write "0" on Line 1 of the return.
You must report and remit all the RST you have charged your customers, even if you have not collected it yet.
If you used items in your business that you purchased without paying RST, you must report the RST you owe. Enter the amount owing on Line 3 of the return and remit it with the return.
This includes:
- items you took from your inventory for your own use
- items you manufactured for your own use
- items you brought into Ontario for your own use
- items you purchased tax-exempt in error.
