Can a US company charge HST?

Alberta, Nunavut, Northwest Territories, and Yukon have no provincial sales tax so you would charge GST only. Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Ontario have combined GST/HST so you would charge both according to the applicable rate.

Do US companies have to pay Canadian HST?

If you are an importer, you have to pay the GST or the federal part of the HST on most commercial goods you import into Canada, whether or not you are a GST/HST registrant.

Can a US company do business in Canada?

U.S. companies that carry on business in Canada are subject to Canadian income tax unless a treaty exemption applies. While U.S. companies may be considered to be carrying on business in Canada, they may not be subject to Canadian income taxation if their activities are protected under the treaty.

Who should apply for HST?

In short, sole proprietors, contractors, consultants, small business owners and entrepreneurs with gross sales or revenues in excess of $30,000 or more in a single quarter or cumulatively over four quarters (a calendar year) must register for a GST/HST account.

Does the US have HST?

Let’s face it – The United States does not have a value-added tax and does not have a federal sales tax. The Canadian goods and services tax (“GST”) and harmonized sales tax (“HST”) are foreign in more ways than one. We are seeing very large assessments where the company has been very successful selling to Canadians.

Can you collect HST if you are not registered?

GST/HST are collected in trust for the government. If you are not registered, you are not a trustee and you are not authorized to collect GST/HST.

Can a foreign company do business in Canada?

A foreign company can also conduct business directly in Canada through one or more branch offices: The foreign company must obtain a licence or register in each province and territory where it proposes to carry on business.

How to register for a GST / HST account?

Register for a GST/HST account A GST/HST account number is part of a business number (BN). If you don’t have a BN yet, you will receive one when you register for your GST/HST account. If you are a non-resident business that is part of the digital economy, see GST/HST for digital economy businesses.

What do you need to know about HST and services?

We are here to help you sort through the complexities and get you the best possible outcome. Please feel free to contact myself, Garth Steele, CPA, CA, Indirect Tax Partner at [email protected] or Mona Tessier, CPA, CA, Senior Manager at [email protected] if you have any questions! Find out how our tax specialists can help you!

Where does the HST apply when buying a house in Ontario?

The building is located in both Ontario and Quebec. The part of the real property in Ontario and the part in Quebec are each considered to be a separate sale of real property. The HST will apply at the Ontario rate to the amount of consideration paid that is reasonably attributable to the part located in Ontario (a participating province).

What was the CRA letter on GST / HST?

CRA has released a letter which discusses whether GST/HST applies to membership dues. This particular letter involved a non-profit corporation seeking a GST/HST exemption for dues paid by its members.