- Canada has a complex sales tax system with federal and provincial taxes
- Businesses must manage GST, HST, PST, QST, and RST based on location and sales type
- Digital sales taxes apply to non-resident businesses selling digital goods in Canada
- Proper registration, tax collection, and compliance are crucial to avoid penalties
- GST is 5 percent nationwide
- HST ranges from 13 to 15 percent in certain provinces
- PST ranges from 7 to 10 percent in specific provinces
- QST is 9.975 percent in Quebec
- RST is applied in Manitoba
- Digital sales tax requires non-resident businesses to collect GST/HST if sales exceed C$30,000
- Additional taxes on cross-border digital services exist in Quebec, Saskatchewan, British Columbia, and Manitoba
- Businesses must register for applicable sales taxes and file returns based on province and revenue
- Compliance involves verifying customer location, validating B2B tax numbers, and timely filing of tax returns
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
