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Taxable supplies that are made in Canada are subject to the GST at a rate of 5%, or the HST at the harmonized rate if they are made in a participating province. The current rates of tax are: 5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon. 13% (HST) in Ontario.
Rebate for exported goods. Non-resident businesses that purchase goods for commercial export can receive a rebate of the GST/HST they pay on goods they buy in Canada. They can apply for the rebate using Form GST189, General Application for GST/HST Rebates, and Form GST288, Supplement to Forms GST189 and GST498.
- On November 30, 2020, the Government of Canada announced a number of proposed GST/HST measures relating to the digital economy. Generally, what are those measures and what is their overall effect?
- When are the measures proposed to become effective? Generally, the proposed measures would start to apply on July 1, 2021: The digital products and services measure, and the short-term accommodation measure, would apply to the affected supplies to the extent that the consideration for these supplies becomes due on or after July 1, 2021, or is paid on or after that day without having become due.
- The proposed measures refer to platforms. What does this mean? Generally, a digital platform would be a website, an electronic portal, gateway, store or distribution platform or any other similar electronic interface, but would exclude an electronic interface that solely processes payments.
- What businesses would be affected by the measure relating to cross-border digital products and cross-border services? Under the proposed measure, non-resident vendors supplying digital products or services (such as online subscription-based video streaming and including traditional services such as legal and accounting services) to consumers in Canada would generally be required to register for the GST/HST and to collect and remit the tax on their taxable supplies to Canadian consumers.
Jan 22, 2023 · The new regulation aims to bring the non-resident digital service providers into the tax net of Canada. The rule is intended to apply to non-resident digital service providers from July 1, 2021, specifically when: Providing cross-border digital services and products. Goods supplied through Canadian warehouse services.
The simplified GST/HST registration framework for non-resident suppliers, business owners, or operators selling to Canadian customers was created by the Canadian government to facilitate the collection of the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) on the supplies they provide. This new framework establishes the rules and regulations that these suppliers must adhere to ...
Jul 2, 2021 · Gail Cole Jul 2, 2021. For the most part, Canada hasn’t required non-resident vendors to collect and remit Goods and Services Tax (GST) or Harmonized Sales Tax (HST). That changed as of July 1, 2021. Non-resident vendors whose annual sales of taxable goods in Canada exceed $30,000 CAD may now need to register for GST/HST.
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Can a non-resident digital service provider claim GST/HST?
What does the new GST rule mean for digital service providers?
Can a non-resident vendor register for GST/HST in Canada?
Are digital platforms subject to GST/HST in Canada?
Do I have to pay GST/HST on digital products?
What is GST/HST registration?
Jul 12, 2021 · The benefit of registering for GST/HST even when not required to do so is that registrants can claim input tax credits, thereby effectively claiming a refund for any GST/HST they paid in the course of their business (where a business is not yet profitable, it may pay more GST/HST on expenses than it receives in revenue, resulting in a GST/HST refund).
