Please note: Vehicles are considered separately. Different provincial taxes might apply than those shown above depending on a number of factors. Of course, this is only a simplified version of the Place of Supply rules and you may need clarification for your individual situation. Each province has its own rate, and it can be difficult to try and make sense of the sometimes confusing information.
Worse still, the federal government has strict regulations and you may face penalties if you fail to charge the appropriate tax. Allan Madan Chartered Accountant will show you the way. Not all provinces have HST, but the ones that do are:. Therefore, it is the lowest sales tax jurisdiction among all the provinces. It is important here to differentiate between legal delivery and physical delivery. This is different from physical delivery, which occurs when the buyer actually receives the good.
In most situations, the place of physical delivery determines what taxation laws are applied. Also, you do not need to be the one shipping the goods. If physical delivery occurs in the province that the buyer is in, then their province dictates the taxation rules. This is an interesting question, because services are taxed differently than goods.
If there is no billing address, then the place where most of the service is performed determines the taxation rules. If there is no business address and the service is performed equally in two provinces, then the one with the higher tax rate determines the taxation rules. For more information on charging and collecting sales tax, please visit Overview of charging and collecting sales. To understand this concept, let us look at some examples.
Did you receive acupuncture? Curious about whether you have to pay HST? The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area. Your email address will not be published. Notify me of followup comments via e-mail. I started a business last year, and applied for and HST number. I collected HST for my sales. Can I just ignore it and send out the invoices without HST? You would have to deregister the account. The CRA should tell you when the effective date that you are deregistered, until which you are supposed to keep collecting.
Otherwise, you will be liable for any HST not collected. Alternatively, you may consider keeping the account open. That way, you can file nil returns once a year. If you decide to get into any other business as self-employed, you can still use the same account. I own a marketing firm in which we provide services to people all over Canada. We help other companies with creating company logos and graphics as well as improve their marketing for their website.
If we are helping with website marketing for a company in another province, do we charge GST and HST according to the province we reside in?
Hi Aaron, It seems that most of the work is web-based and does not require it to be sent to the clients. Regards, Allan Madan and Team. We are currently providing sub contracting work for a Quebec based firm with the work being done in Quebec. I own my own bookkeeping business in BC, and I have new clients coming from Ontario for which I supply training for Quickbooks Online,as well as performing monthly reconciliations for them, I just want to confirm, because it is a service performed in BC, that I will only charge these clients GST and not HST.
Up until this month I did not need to register for GST. I am setting-up a dropship ecommerce business that will be registered in Quebec. The clients will place an order on my website for physical goods, I will process their payment, then order from a supplier that will deliver the goods directly to my client, under my name. I do not see or touch the goods, but pay the supplier and deal with the taxes: 1.
If my client is in Ontario, and the supplier is in another province not QC , what sales tax do I charge? If my client is in Ontario, and the supplier is in Ontario, what sales tax do I charge? If my client is in Ontario, and the supplier is in Quebec, what sales tax do I charge? Please help, this is quite confusing. I AM a small graphic design business in Quebec.
Ontario billing address. Thanks for the useful information you posted on this page. However, I still have a question regarding my situation and it would be great if you could please help clear my confusion. I am an Immigration Consultant registered my business in ON — not Canada wide and will be starting my business soon. But before I charge my future clients, I like to understand the taxation aspect fully. Please note, I am not sending any documents to the client physically but I have to obtain a clients address personal or business for my Retainer Agreement and Invoice.
The paper work is done in ON and I am not sending or delivery any documents to clients physically. Everything on email. I have tried to search everywhere but I am unable to find this answer. I hope I can get some help from you. Hello I work for a consulting company in Ontario. One company we work with is another consulting company based out of BC. They contract out work to us.
We perform work for their clients across the country including site visits and meetings in multiple provinces as well as reports sent via email. We are billed by the consulting company in BC regardless of where their client is located. I am an Ontario based company providing web design and marketing consulting services to a company in Alberta. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.
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Popular Courses. Fiscal Policy Tax Laws. Table of Contents Expand. What Is the HST? Understanding the HST. Canadian Provinces and the HST. Registering and Collecting the HST. Exempted Goods and Services. Key Takeaways The harmonized sales tax HST is a combination of federal and provincial taxes on goods and services in five Canadian provinces.
The concept behind the HST was to streamline the recording and collection of federal and provincial sales taxes by combining them into a single, uniform levy across Canada. Critics argue the HST shifts the burden of taxation to consumers, but proponents of the tax say it ultimately benefits consumers by lowering costs. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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