I have a small part-time company (sole proprietorship) based California. We perform a specific testing service on site (in this case, Alberta), and then reduce data back home in California. We've been asked to do a job in Alberta. I looked through the Canadian Revenue Agency web site. If the job would be over $30k, it looks like we would need to get a GST number, correct? How do I report income/taxes in Canada and US? Anything else I should be concerned with?
Thanks,
Mike
Cross Border Taxation
Moderator: Mark T Serbinski CA CPA
GST is mandatory if you sre selling goods and or services in Canada and it is exempt if your total anual worldwide sales are less than $30K, so for sure you need to get the GST number.
As far as you taxes go if you are selling services in Canada and you do not have a permanent establishment here you only come and perform these services on occassion and leave then it sounds as if you are not a resident for Canada so you file only the income on your 1040 as business income. The fact that you register for GST 5% in Alberta has no effect on your residency.
As far as you taxes go if you are selling services in Canada and you do not have a permanent establishment here you only come and perform these services on occassion and leave then it sounds as if you are not a resident for Canada so you file only the income on your 1040 as business income. The fact that you register for GST 5% in Alberta has no effect on your residency.
JG