Managing sales tax across multiple jurisdictions is complicated. We can help!

Similar to USA, Canadian GST/HST has a nexus test referred to as the Carrying on Business analysis. This consists of an analysis of 12 factors, basis which a decision is made. The factors include presence of employees/agents, physical office space, delivery location etc. as relevant consideration. Thus, even if the registration threshold has been crossed, it does not automatically trigger a registration requirement. QST and PST have separate requirements and should be analysed separately.

Marketplace rules in Canada are different than USA. If you are registered for GST/HST, then even if you sell only on Amazon, you are still required to file returns and remit tax to the Government.  Amazon will remit the taxes collected back to you.

Sales tax in Canada follows a unique dual tax system whereby both the Federal Government and Provincial (State) Governments levy their own sales tax. The Federal Government levies a Goods and Service tax (GST) whereas the Provincial Governments levy a Provincial Sales Tax (PST). In 2010, some of the provinces merged their PST with the federal GST and the merged tax is referred to as the Harmonized Sales Tax (HST). Currently, there are only four provinces (Saskatchewan, Manitoba, British Columbia and Quebec) which continue to levy a separate PST.  The remaining provinces either do not have a PST or have HST.

If you are selling digital or other goods and services to customers in Europe or in other countries where the Sales Tax applies, you will likely have to register for VAT at some point. Usually, sellers register for VAT as soon as their turnover passes a certain limit, set by the country where the store is established. The VAT registration requirements vary from country to country. The registration thresholds are different between countries and within a country depending on the type of business activity. The scope of documentation that needs to be submitted also varies depending on the applicant’s place of business.