CANADIAN SALES TAX RATES BY PROVINCE
Do we need to be registered for GST in Canada?
Persons carrying on business in Canada must register for GST/HST purposes, if that person’s worldwide taxable income exceeds $30,000 annually. Certain specific industries are obliged to be registered for GST/HST irrespective of the $30,000 worldwide income threshold. The term “Carrying on Business” is not defined in the Excise Tax Act. Determining whether a Non-Resident is “carrying on business” in Canada is a question of fact, and requires consideration of multiple relevant factors. The Canadian Revenue Agency (CRA) has issued a policy statement, GST/HST Policy Statement P-051R2 to provide guidance on this subject.
Do we need to be registered for Provincial Taxes in Canada?
Persons selling into any of British Columbia, Manitoba or Saskatchewan must register for PST in each of these provinces if selling to consumers. The PST registration process is in addition to, and completely seperate from registering for GST/HST.
The province of Quebec has implemented it’s own Sales Tax, called QST (Quebec Sales Tax). THe rules and regulations governing QST follow the GST rules with a few notable specific differences. Historically suppliers without a physical presence in Quebec were not obliged to register for QST purposes. Registration requirements for suppliers without a physical presence in Quebec and operators of certain digital platforms that supply digital goods/services to consumers in Quebec, changed from January 2019. From January 1, 2019 non-resident suppliers without a physical presence in Quebec and non-resident operators of certain digital platforms that supply digital goods/services to consumers in Quebec were obligated to register for QST Since September 1, 2019, suppliers are obliged to register for QST.
Does my business need to register for GST
If your business is “doing business” in Canada, and the businesses WORLDWIDE sales exceed $30,000 in a fiscal year or within the previous four consecutive quarters, you are required to register and collect GST/HST on sales made in Canada.
What‘s Next After You’re Registered?
Once registered, you will be required to submit periodic statutory returns – annually, quarterly or monthly. Returns can be complex and difficult to complete accurately. We ensure you don’t miss return deadlines, and that they are completed correctly
The return filing periods depend on the volumes of taxable sales made in Canada:
- Annual Filing: sales less than CAD $1,500,000
- Quarterly Filing: sales between CAD $1,500,000 and CAD$6,000,000
- Monthly Filing: Sales in excess of CAD $6,000,000
WHY WORK WITH LITVIN MUIR?
- With a footprint in North America, Europe, Africa and Australasia, our firm is renowned for helping companies stay compliant across the world. Our network of qualified agents ensures that returns are completed expertly in all jurisdictions, no matter the language barrier or legislative requirements.
- Team of experts identifying all possible exposures and minimizing your risk of fines
Different Canadian Sales Taxes?
- Federal Sales Tax – GST (5%) is applicable to ALL sales made in Canada.
- Provincial Sales Taxes – British Columbia (7%), Manitoba (7%) and Saskatchewan (6%) have a retail sales tax. This tax is charged on retail sales and is charged in addition to GST.
- Quebec Sales Tax – QST (9.975%) The province of Quebec levies a sales tax on all sales in addition to GST.
- Harmonised Sales Tax – HST – Ontario (13%), New Brunswick (15%), New Foundland and Labrador (15%), Nova Scotia (15%) and Prince Edward Island (15%), have all adopted a harmonised sales tax which is charged on all sales in the particular provinces.
Why register if not required to do so
The primary advantage to register for the GST if not obliged to do so, is to be able to be refunded for sales taxes incurred on expenses incurred in carrying out business. These are claimed as input tax credits against taxes collected, when remitting taxes on tax filings.
Do Non Residents doing business in Canada need to register for GST?
All persons with a worldwide sales exceeding CAD$30,000 must be registered for GST if carrying on business in Canada.
Determining whether a Non-Resident is “carrying on business” in Canada is a question of fact, and requires consideration of multiple relevant factors. The Canadian Revenue Agency (CRA) has issued a policy statement, GST/HST Policy Statement P-051R2 to provide guidance on this subject.
How often do we need to file GST Returns?
The frequency for filing GST returns is determined by the volume of sales carried out in a 12-month period.
Annual: Sales less than CAD $1,500,000
Quarterly: Sales between CAD $1,500,000 – CAD $ 6,000,000
Monthly: Sales exceeding $6,000,000