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Originally posted by Brad Gosse
GST tried me on for this a while ago. My accountant handled them and everything was fine.
GST is not charged to US based consumers or businesses. They can't force you to collect it on those sales. However if they want to be pricks they can audit your sponsors to find out which sales came from Canada. but that's too hard for them.
When americans come here to shop they get the GST back @ the border. The Gov't would be stupid to make us charge GST or any taxes to US based customers. Canada can't survive without US money. If we started hitting thhem up for tax they wouldn't shop here or deal with Can businesses.
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Well, this is what I thought too - our accounting firm told us that the administration of the law and the law itself is very different. If the person who audit you wants to get some good stats in his records, he can be a pain in the ass and force you to pay GST on that.
The law state that you have to charge EVERY consumer or business the GST. But most likely the CCRA weren't enforcing this.
But now they are... Recently they actually enforced this to some people I know and some that I heard about.
Here is a part of our accounting firm letter they presented to us:
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"A GST/HST registrant operates an interactive Web site. Subscribers pay a fee to access the site, which features digitized content, including music, videos, games, and other activities. The subscribers are not able to download permanent copies of the content to their computers, but can interact with it while on-line. They are provided with a password to enter the site, and can access it at any time from any location.
This is a supply of intangible personal property, which is made in Canada as there are no restrictions as to where the intangible personal property may be used. The registrant will be required to charge its non-resident subscribers tax at the rate of 7%, as the supply is not a supply of intellectual property, and therefore is not zero-rated under the provisions of section 10 of Part V of Schedule VI."
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