Canada 5%
Some importations such as prescription drugs, medical and assistive devices, basic groceries, agriculture and fishing goods are non-taxable.
However, the rate at which taxes should be collected and levied depends on whether the taxable supplies are made in Canada and whether they are made in the participating province.
$30,000
Be careful, the threshold vary in different provinces.
First, apply for a business number. This can be done using an online form or by sending a request by mail or fax. After you are assigned a business number, you will be able to request GST registration.
Applications must include business information about the company, such as the type of business or organization, the legal name of the company, contact information, website address (if applicable), description of the main business activity registration information (Date of incorporation, jurisdiction of registration and certificate number).
The appointment of a tax representative is not a prerequisite. Anyway, we would advise you to appoint a tax representative or consultant to avoid mistakes in tax documents. The tax Service of Canada levies quite large fines.
Deadline is end of month after the end of the reporting period. The tax is paid quarterly, based on the calendar quarterly reporting period.
The main currency of payment is the Canadian dollar, but you can apply for permission to make these payments in the appropriate foreign currency.
If you submitted the declaration late, you may be charged a fine. The formula for calculating the penalty: A + (A×0.25 × C),
where:
A – 1% of the outstanding amount;
C – the number of full months for which the refund is overdue, but not more than 12 months.
As rule, keep all required documents and supporting data for a period of six years from the end of the last tax year they relate to.
5%
30,000 Canadian dollars
Some provinces have separate legislation regarding the taxation.
Quebec. The rate is 9.975%. The threshold is 30,000 Canadian dollars (transactions to companies registered as taxpayers are not taken into account).
Saskatchewan. Provincial sales taxes (PST) are applied. The rate is 6%. Registration is required starting from the first transaction.
British Columbia. Provincial sales taxes (PST) are applied. The rate is 7%. The threshold is 10,000 Canadian dollars (transactions to companies registered as a taxpayer are not taken into account).
To determine the bid correctly, it is necessary to establish the location of the client. To do this, it is necessary to accurately establish two proofs of the customer’s location, such as
To register, you need to fill out an application and send it by fax or mail.
The appointment of a tax representative is not a prerequisite.
Deadline is end of month after the end of the reporting period (as rule – quarterly).
If you do not file a return after an official request from the tax authority, the fine can be up to 250,000 Canadian dollars.
Six years.