Tax for Online Business Canada By Accountant Mississauga, Oakville, Toronto Watch Video
Allan Madan, CPA, CA
Many companies today have a presence online or they are conducting business completely online. Read More…
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ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
While the first point was very clear Viz-a-viz business incorporated in US and owners operating the business from the US selling to Canadian residents, point about collecting GST / HST on such sales by US based and incorporated businesses is not entirely clear. Can someone clarify or point to a site that explain collection of GST / HST for such businesses?
Hi,
Thanks for the inquiry!
You need to verify from where your client is making the order. At its most basic core, this is at least checking where the mailing address is though some individuals may have a mailing address in another country in order to avoid paying tax but as a business, you need to check for the destination address.
In terms of remitting the GST, if you are carrying on business, making taxable supplies and are not small suppliers in Canada, then you need to register for the GST / HST. Of course there are a wide variety of factors that need to be taken into consideration in determining this. We would gladly assist you with your HST situation as we have plenty of US-based clients. In the mean time, this link may be of use to you: http://www.cra-arc.gc.ca/E/pub/gp/rc4027/rc4027-11e.pdf. It covers main topics for non-residents doing business in Canada.
– The team at Madan CA