Should i collect hst

If any documents need physical copies, keep those copies safely in your business or home. A yearly inventory count is also important. There are many ins and outs to running your own business. HST is just one of the systems that seem complicated at first but quickly become second nature. The guidelines above should help you get a quick grasp of HST to follow the regulations for your particular business area. Back to Town Square. What is the Canadian HST? But the current sales tax rules for digital transactions date back to a time when our economy was strictly bricks-and-mortar, and the government is concerned that the existing rules put Canadian businesses at a disadvantage compared to their foreign competitors.

We highlighted these concerns in a submission to the government — prepared with input from the CPA Canada Commodity Tax Committee and other key stakeholders. In this tax blog, we present an overview of the proposed rules and highlights from our submission to the federal government on this topic.

To level the playing field, the proposals would require foreign-based online vendors, and digital platform operators i. This will be one complicating factor when compared with other countries which charge VAT as a single rate. This is one issue we asked the government to reconsider, as it has created difficulties under the tax that the Government of Quebec introduced previously. The CRA has not yet released information on how the new simplified registration process will work.

Similar fairness issues are at play when Canadians buy goods from online vendors or digital platforms who have no physical presence in Canada and hold their goods in Canadian fulfillment warehouses. Digital platform operators will be required to file an annual information return with the CRA for the calendar year by six months after the end of the calendar year. Fulfillment warehouses must notify the CRA that they are carrying on as a fulfillment business.

They must also maintain records about their non-resident clients and the goods stored on their behalf. She has run an IT consulting firm and designed and presented courses on how to promote small businesses. Learn about our editorial policies. Updated on March 05, Article Sources. Your Privacy Rights. 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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Posted on 3 January, 20 August, by MikeWiddis. Examples of taxable supplies include: advertising, hotel accommodation, legal and accounting services, and most products.

Examples of zero-rated supplies include: most groceries, agricultural products, medical devices, and prescription drugs.