In this article, we will be discussing how to verify your Canadian Wholesale supplier. you can verify a Canadian Wholesale Supplier by checking their Business is registered in Canada, if they are GST/HST registered in Canada and even comparing their product price rate to the retail rate in Canada.
Check the Affordability of the Wholesaler product price compared to retail price rate
Verify a wholesale supplier. You should check the price rates of the supplier. Who is the supply us usually has a cheaper price rate compared to retailers.
checking the price rates of your wholesale supplier is the most obvious way to verify the wholesale supplier. This is because wholesale suppliers usually purchase products in bulk from a manufacturer.
Check if the Canadian Wholesale has a legally registered Business in Canada
to verify a Canadian wholesale supplier you should check to know if the wholesale supplier has a registered Canadian business.
you can verify the business registration status of a Canadian wholesale supplier entirely online. It’s a quick, simple and free process.
We detailed the steps for verifying the Business registration status of a Canadian business in this Article.
If the company of your Canadian wholesale supplier is registered in Quebec, you can verify the business registration status of the company on the Quebec Business search webpage.
Check if the Canadian Wholesale is following the appropriate Canadian GST/HST regulations
Most businesses in Canada have to collect the goods and services tax (GST)/harmonized sales tax (HST) on taxable supplies of property (goods) and services made in Canada
Generally, if a Canadian Business provides taxable property and services in Canada and their total taxable revenues exceed $30,000 in any single calendar quarter or in four consecutive calendar quarters, they will have to register for the GST/HST.
If you are a Canadian Business and buy products from a Wholesale supplier in Canada, the Supplier requires you to charge your GST/HST for taxable products sold.
The GST/HST you pay on products which you purchase for your Business operations is called input Tax. So if you are purchasing a product from a Canadian Supplier, the GST/HST you pay is called an Input Tax.
If you are a Canadian Business selling products to Customers, the tax on the products you sell which you collect from your customers is called Output tax.
If your Input tax is more than your Output tax, you can claim the difference as an Input tax credit for Canada Government. This applies if you are a Canadian GST/HST registered Business.
Note that before you can claim an input tax credit, you must obtain the necessary documentation (which includes Invoice an invoice, a receipt, a credit card receipt, a debit note etc) from your supplier to support your claim and the documentation must be made available to the CRA for inspection if requested.
In Case of export, where you purchase a product from a Canadian Business for delivery outside of Canada, there is a 0% GST/HST rate on exports, meaning you do not get to pay GST/HST.
The GST/HST on exported products is 0% if you are Canadian, non-Canadian Business or Individual Buyer.
Check if the Canadian Wholesaler is GST/HST registered
One way of verifying your Canadian wholesaler Business legitimacy is to check if the wholesaler is GST/HST registered in Canada.
It’s important to note that all Canadian Suppliers will be GST/HST registered because a Business is only required to be GST/HST registered in Canada if the Business has made a sale of over 30,000 CAD or above.
You can check and verify if your Canadian Wholesale Supplier is GST/HST registered in Canada, by using the GST/HST register, which is accessible on the Government of Canada website.
After verifying the Wholesale Suppliers GST/HST registration, it’s important to Print the Search Details screen to make sure you claim input tax credits only for GST/HST charged by suppliers who are registered.
The checks discussed in this Article helps you to verify the Business legitimacy of your Wholesale Supply in Canada.
