My friend is a Canadian citizen living in Canada providing services via phone and internet to an American Company located in the States. She is working as an independent contractor. So basically she calls into the States from Canada and the company cuts her a cheque in American dollars which they mail to her. (This is the first time they've used a Canadian's services).
Question #1: On the invoices she submits, should she be charging GST because she's providing the service from Canada? If so, she's already submitted one invoice and been paid but did not include GST, how does she rectify this? #2: When she deposits the cheque into her account, what does she have to be aware of in terms of the exchange rate? (she gets paid every two weeks so there's probably an additional income on the exchange of over $200) and finally, #3 Will she only have to pay taxes to Revenue Canada? Thanks in advance for any advice.
Cdn providing services to US for Amer co.
Moderator: Mark T Serbinski CA CPA