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.
US Service firm charge GST/HST for Ontario clients?
Moderator: Mark T Serbinski CA CPA
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- Joined: Thu Jun 25, 2015 12:58 pm
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- Posts: 20
- Joined: Thu Jun 25, 2015 12:58 pm
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?
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?