GST/HST on Digital Products in Canada
GST/HST on Digital Products in Canada Canada has always been a global importer and exporter of goods and services. However, with more and more digital products in the marketplace, it is important to understand the impact of GST/HST on digital products in Canada. Legislative changes occurred in 2021 that directly address the taxation of digital […]
Sales Tax 101 For Canadian Startup Companies
Owning and operating a Canadian startup company can be a highly lucrative and exciting venture. At the onset of establishing a business venture, however, there are many major decisions to be made regarding how the company will operate. A major piece of the puzzle involves taxes. How much are Canadian startup companies expected to pay […]
What You Must Know About EU VAT If You Have European Customers
Establishing a business within Canada requires an understanding of Canadian tax law and the rules and regulations surrounding how to charge sales tax within the country. But what happens when your business extends beyond Canadian borders and into the European market? Unfortunately, European Union value added tax, or EU VAT, does not follow the same […]
First Nation Persons and GST/HST Exempt Sales
First Nation persons and GST/HST exempt sales is a topic that can be confusing and legally complex. Who is eligible, and what goods and services qualify? What responsibilities rest with First Nations persons, bands or band empowered entities when making a purchase, and what responsibilities are the vendors? There are often many questions and concerns […]
GST/HST Interest & Penalties Apply On “Net Tax”
The tax laws enforced by the Canada Revenue Agency (CRA) can be overwhelming and complicated. In some cases, interest and penalties apply on certain taxable amounts. In a recent court case, the Federal Court of Appeal in Canada has taken a definitive stance on GST/HST interest and penalties that apply on the “net tax” that […]
Ways to Minimize the Cashflow Impacts of GST/HST
According to the Organization for Economic Co-operation and Development (OECD), Canada received on average a lower proportion of revenues from taxes on goods and services than other OECD member countries. However, that does not mean that there are not still significant cashflow impacts of GST on Canadian businesses. In Canada, any taxpayers that earn over […]
Do You Need To Register For Provincial Sales Taxes?
Do you need to register for Provincial Sales Tax (PST)? Canada is unique in its administration of sales tax. Not only are there multiple types of sales tax, but the requirements vary from province to province. It is not surprising that many businesses are left wondering which taxes they need to register for, collect, […]
GST, HST and Residential Rental Properties
Building new properties and maintaining rental properties are already expensive as it is, but factoring in GST and HST can make the process even more burdensome. The Canadian Revenue Agency does offer partial tax rebates for new construction and there may be tax credits available if the property is going to be used for short […]
How To Manage Your Indirect Tax Risk
An important part of strategic planning for any company is managing indirect tax risk. Indirect taxes generate significant revenue for governments. For example, the Government of Canada collected $38.2 billion in goods and services (GST) taxes during the fiscal year 2018-2019. Governments often levy multiple forms of indirect tax on companies, and tax monitoring and […]
New GST/HST Rules For Foreign Companies
The new GST/HST rules surrounding Canadian sales tax present unique challenges for foreign businesses. While the new rules are designed to level the playing field for Canada-based businesses, those without a physical presence in Canada will need to adapt to continue selling goods and services to Canadian residents. If you own a foreign business that […]