The Canada Revenue Agency Has Released A New Guide For Non-Residents Doing Business In Canada
Non-residents who are doing business in Canada and would like to comply with Canada's Goods and services tax (GST) and harmonized sales (HST) tax laws should review this new gide published by the Canada Revenue Ageny on June 15, 2011. "Doing Business in Canada - GST/HST Information for Non-Residents" is an important document to read. It is over 38 pages on information that may or may not answer the questions that the non--resident may have about their GTS/HST obligations.
Whether or not a non-resident is actually doing business in Canada is a factual test. There is no definition of "carrying on business in Canada" in the GST/HST laws. Pages 7-8 of the CRA's document address the basics and a Canadian sales tax lawyer can help apply the CRA's test in a particular case.
The CRA document addresses many issues, including:
1. Should a non-resident register for GST/HST purposes?
2. How is GST/HST calculated?
3. What are the GTS/HST return filing requirements?
4. What are the place of supply rules for charging HST?
5. How is GST/HST applied on imported goods?
6. How is GST/HST applied on imported services and intangible property?
7. How is GST/HST applied on exported goods, services and intangible property?
8. What are drop shipments and how do the drop shipment rules work?
9. How do non-residents recover GTS/HST by way of a rebate?
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
