Purchase Order Form FAQ - Canada


A Purchase Order is a standard order form suitable for the requisition of goods and services. LawDepot offers a written Purchase Order form.
Definitions
What is the difference between ship date, and purchase order date?

The ship date is the date the purchaser would like the goods to be shipped. Purchase order date is the date the purchase order is created by the purchaser.

What is UOM?

UOM is a common abbreviation for Unit Of Measure. Each item on the purchase order will be sold by specific units. For example, nails may be sold by the pound. Hats may be sold as each or by the dozen. The unit price will be the price for each unit of good sold.


Tax
Which sales tax is applicable? Is it determined by the seller's address, the seller's head office address, the buyer's address or the location of the goods?

Generally the sales tax of the seller will apply. If a buyer purchases and takes delivery outside the seller's jurisdiction then the seller's sales tax would not be applicable. But any sales tax in the jurisdiction where the purchaser took possesion may be applicable. The seller would usually only be required to collect sales tax where the buyer purchases and takes possession within the seller's jurisdiction. The responsibility would be on the buyer to self-assess and pay sales tax in the jurisdiction where the buyer took delivery or where the good or service will be used. A self-assessed tax would not be included on a purchase order or invoice but would simply be paid directly to the Buyer's governing body. The client should consult authorities in their jurisdiction to confirm the requirements for collecting sales tax especially where a transaction involves multiple jurisdictions. (e.g. where the seller is located in Kansas and is shipping to a buyer who takes possession in Florida, the Kansas sales tax would not be applicable but the buyer may be expected to self-assess in Florida)

Which jurisdiction should be selected for governing law?

Generally the jurisdiction where the seller is located will be the governing law. The governing law indicates which jurisdiction's commercial law and consumer protection code (or its equivalent) will govern the purchase order.

What are the taxes for each state and province?

United States

Alabama - 4%

Alaska - N/A

Arizona - 5.6%

Arkansas - 5.125%

California - 7.25%

Colorado - 2.9%

Connecticut - 6%

Delaware - N/A

Florida - 6%

Georgia - 4%

Hawaii - 4%

Idaho - 6%

Illinois - 6.25%

Indiana - 6%

Iowa - 5%

Kansas - 5.3%

Kentucky - 6%

Louisiana - 4%

Maine - 5%

Maryland - 5%

Massachusetts - 5%

Michigan - 6%

Minnesota - 6.5%

Mississippi - 7%

Missouri - 4.225%

Montana - N/A

Nebraska - 5.5%

Nevada - 6.5%

New Hampshire - N/A

New Jersey - 6%

New Mexico - 5%

New York - 4.25%

North Carolina - 4.5%

North Dakota - 5%

Ohio - 6%

Oklahoma - 4.5%

Oregon - N/A

Pennsylvania - 6%

Rhode Island - 7%

South Carolina - 5%

South Dakota - 4%

Tennessee - 7%

Texas - 6.25%

Utah - 4.75%

Vermont - 6%

Virginia - 4.5%

Washington - 6.5%

West Virginia - 6%

Wisonsin - 5%

Wyoming - 4%

District of Columbia - 5.75%

Canada

British Columbia - 12% HST (5% GST and 7% Provincial Tax)

Alberta - N/A

Saskatchewan - 7%

Manitoba - 7%

Ontario - 13% HST (5% GST and 8% Provincial Tax)

Quebec - 7.5% NOTE: apply provincial tax to the total of selling price plus GST

Newfoundland and Labrador - 15% HST (7% GST and 8% Provincial Tax)

Nova Scotia - 15% HST (5% GST and 10% Provincial Tax)

New Brunswick - 15% HST (7% GST and 8% Provincial Tax)

PEI - 10% NOTE: apply provincial tax to the total of selling price plus GST

Northwest Territories - N/A

Nunavut - N/A

Yukon - N/A


 

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