US Service firm charge GST/HST for Ontario clients?

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Moving2Canada
Posts: 20
Joined: Thu Jun 25, 2015 12:58 pm

US Service firm charge GST/HST for Ontario clients?

Post by Moving2Canada »

Hi, I need to know if as a US based LLC with clients in Ontario, do we charge for GST/HST? Presumably, we then need to pay the Government by filing a Canadian tax return and paying or is there some sort of GST/HST exemption?

Looking on the CRA website I can see a witholding tax exemption but the GST/HST requirement is less clear - we would be above the $30k small supplier threshold.

If we must register/collect/pay, then do we only collect on the amounts billed in excess of $30k in the quarter?

Thank you.
nelsona
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Post by nelsona »

nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Moving2Canada
Posts: 20
Joined: Thu Jun 25, 2015 12:58 pm

Post by Moving2Canada »

Thank you. I don't see any exemptions but it looks like it comes down to whether we are 'carrying on a business in Canada', which raises a whole new set of questions.

http://www.cra-arc.gc.ca/E/pub/gl/p-051 ... P413_41376

They provide various examples of firms that are or are not 'carrying on a business in Canada'

How do I obtain an opinion as to whether or not we are?
-Small consulting firm based in the US
-Work performed in the US, possibly 1-2 visits to client per year
-Only one client in Canada (what happens if we get a second?)
-We do not intend to solicit new Canadian clients, but if approached we wouldn't turn them down
-'Where Payment is made...' I'm not sure if this refers to where the cheques are cut or where they are deposited?

If we determine that we are not carrying on a business but then later the CRA determines otherwise, can we go back and charge GST/HST to our client?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1-800-959-5525
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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