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For programmers/Designers in Canada
If you are providing services to a client in the US, are you suppose to charge them GST/PST/HST?
was told by a programmer I'm working with and this is the first time I've heard of it. |
depends on your sales , think theres a 30k min
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i see what your asking , if you are supposed to be paying it as an american .. yes but you can get it back. Just like when canadians go to vegas they can get the money they paid on taxes on winnings back.
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If you are providing goods and or services to the US, no, you do not have to charge GST or PST if your business is located in Quebec.
However if your server is located in Quebec and you are providing services such as hosting, yes you DO have to charge GST and PST, even if your customers are American. As stupid as this sounds, its true. According to a "memo" issued by revenue Quebec (which today still is not a law), Hosting companies, even if you own one lousy server, even of you co-locate, are considered to be "Telco"'s (like Telus, Shaw, Rogers etc) under Revenue Quebec Taxation and therefore must charge GST and PST. Stupid as fuck, I know. Try telling your American customers that you have to charge them tax and then try explaining how they are supposed to get that back. (Answer: piles of paperwork provided IN FRENCH to Revenue Quebec). It's bullshit. |
For software development, no, you don't charge. As stated above, you don't have to collect any GST/PST until you've reached $30,000 in taxable (ie. Canadian) sales. From there, collect GST for all Canadian residents, and PST only for residents of your province.
Does your friend actually send the taxes to the government, or is that a self-imposed tip? |
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