According to the Organization for Economic Co-operation and Development (OECD), Canada received on average a lower proportion of revenues from taxes on goods and services than other OECD member countries. However, that does not mean that there are not still significant cashflow impacts of GST on Canadian businesses. In Canada, any taxpayers that earn over $30,000 in taxable sales must register with the Canada Revenue Agency (CRA) to collect the federal goods and services tax (GST) and harmonized sales tax (HST). While businesses can then later claim this amount back from the CRA in the form of Input Tax Credits (ITCs), this can take time and eat into the business cashflows. If you have questions or concerns about the cashflow impacts of GST or are curious if there are ways to minimize the applicability of GST/HST, it may be helpful to speak with a seasoned Canadian tax lawyer. Jeremy Scott Law provides indirect tax advice to clients and may be able to provide you with the guidance that you need. Reach out for a consultation today at (902) 403-7201.
Source Jeremy Scott
