Quote:
Originally Posted by Barry-xlovecam
The USA hates big government and new taxes  How is the GST handled. That is both a Canadian federal and provincial consumption tax isn't it?
I know (at least for them moment) foreign business selling digital goods are not subject to demand of becoming the nation of Canada's tax collector ( unlike the EU and now Japan).
On inter-provincial sales is the buyer's GST rate collected and remitted on digital sales in general (all)? |
The GST is a federal only 5% value added tax (VAT). Most provinces also have a sales (consumption) tax. But, many provinces have merged their taxes with the federal one, creating a HST (Harmonized Sales Tax), which is a VAT-style tax.
Foreign entities selling to Canadian ones are not obligated to collect the tax. Neither is a Canadian company selling to a foreign one. Those are both "tax free".
Transactions between Canadian entities are taxed at the appropriate tax (either GST or HST) based on the province of the buyer.
__________________
AdultAdBroker - Buy and Sell Your Flat Rate Banners, Links, Tabs, Pops, Email Clicks and Members' Area Traffic - updated April 2025