Quote:
Originally posted by rickholio
Disclaimer: I'm not an accountant. If you do any serious business, you'll need one anyways. So, go get one. A good one. One that eats sleeps and shits tax stuff. You'll be glad you did.
When dealing with cross-border sales (canada into US) the CCRA considers it "zero rated", that is, not GST-able. My business involves sales of my services to corporations in the US, and thus I pay no GST. I still get the benefit of being able to reclaim GST on business expenses (business related expenses and purchases are effectively GST-free).
However, if you do business within Canada with other Canadians beyond a certain amount (I believe it's 35k/year) you need to collect and remit GST.
At least, this is how I understand it based on what my accountant tells me. YMMV.
|
You are correct. It's a little different if you operate a paysite though. You need to track who is Canadian and who is not. if you cannot, CCRA will assume 100% of your members are Canadian. I have a whitepaper that explains it really well, but its in paper form from the settlement I entered into with the government and I'm too lazy to scan it.
WG