Changes in GST / HST and QST - What happens when you have activities in other provinces?
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Changes in GST / HST and QST
What happens when you have
activities in other provinces?
Rosa Maria Iuliano, M.Acc, CPA, CA
Tax Partner
Collins Barrow Ottawa LLP
Provincial Tax Rates
Province Rate Type Provincial Rate Federal Rate Total
(GST/HST, PST)
Alberta GST 0% 5% 5%
British Columbia GST + PST 7% 5% 12%
Manitoba GST + PST 8% 5% 13%
New Brunswick HST 10% 5% 15%
Newfoundland and Labrador HST 10% 5% 15%
Northwest Territories GST 0% 5% 5%
Nova Scotia HST 10% 5% 15%
Nunavut GST 0% 5% 5%
Ontario HST 8% 5% 13%
Prince Edward Island HST 10% 5% 15%
Quebec GST + QST 9.975% 5% 14.975%
Saskatchewan GST + PST 6% 5% 11%
Yukon GST 0% 5% 5%
Place of Supply Rules • Is the supply made in Canada? – Does GST/HST apply? – What rate? – Is it made outside of Canada? – Do you now have other tax obligations in other jurisdictions? – Wayfair
Is the supply made in a Province? • Made in Canada – YES! • Made in a province – refer to Schedule IX and the New Harmonized Value-Added Tax System Regulations • Place of Supply Rules
What to Consider? • Where is possession? • Address of supplier? • Meaning of “Delivered or made available” • When is a service performed? • Where is a service performed?
LA BELLE PROVINCE – QUEBEC – 9.975%
Specified QST Registration • New legislation • Mandatory registration for Non-resident suppliers of IPP and services to a Quebec consumer • Mandatory registration for Canadian suppliers if sales of IPP, services or TPP made to a Quebec consumer
New QST Registration Effective on January 1, 2019 • Suppliers who have no physical or significant presence in Canada and are not registered for the purpose of the application of the GST/HST, will be required to register for, collect and remit the QST on taxable incorporeal movable property and services they supply in Quebec to specified Quebec consumers • Will also apply to digital property and services distribution platforms.
New QST Registration Effective on January 1, 2019 • Suppliers who are registered for GST/HST purposes will be required to register for, collect and remit the QST on taxable corporeal movable property, incorporeal movable property and services they supply in Quebec to specified Quebec consumers. • For these mandatory registration measures to apply to a non- Quebec resident supplier, the value of consideration for all taxable supplies made remotely by the supplier to Quebec consumers must exceed an annual threshold of $30,000
Registration (477.5 of the AQST)
• Mandatory registration if the annual taxable supplies in
Quebec to consumers (individuals) exceed $30,000
– “Consumer for purposes of the AQST
– Sales of associated persons are not considered for this
purpose
– Consideration must be expressed in Canadian dollarsSpecified QST registration surprises
• The Specified QST is not quite QST
– No input tax refund is available to registrants if QST is paid in error
to a supplier registered under the specified QST system
– QST paid by a supplier registered under the specified QST system
cannot be claimed as an ITR. ITRs are available to “registrants” only
– A registrant under the QST general regime must inform a specified
supplier of its registration number (the recipient’s number) to attest
to the fact that is not a Quebec consumer in order to avoid being
charged otherwise unrecoverable QST
– NO rebate for QST paid in error, only a credit or refund from the
supplier.BRITISH COLUMBIA – 7%
British Columbia • Persons Located Outside BC Registration Requirements – Cause TPP to be delivered in the ordinary course of business – Solicits order by advertising and other means – Accepts orders from locations in BC – Sells or provides to a person in BC for use or consumption AND - Causes the TPP to be delivered in BC
SASKATCHEWAN – 6%
Saskatchewan
• Must be registered for PST to sell TPP at a retail sale
• Retail sale means:
1. TPP to a consumer or use for consumption or use (not resale)
2. Taxable services for purpose of use and not resale
3. TPP to a consumer or user who purposes to provide taxable
service
4. TPP to a consumer or use to be used by the consumer for
promotional distributionSaskatchewan • Definition of a vendor - retail sale includes a sale of TPP or of a taxable service by a person who does not otherwise carry on business in Saskatchewan, if the TPP or the service is acquired for use or consumption in or relating to Saskatchewan • This catches a business with no physical presence, but makes sale in Saskatcheqn
MANITOBA – 8%
Manitoba • Must have a Manitoba RST number to carry on business in Manitoba as a vendor, manufacturer, wholesaler, importer. • Vendor means a person who sells or leases TPP at a retail sale in Manitoba • Retail sale is a sale of TPP to a purchaser for purposes of consumption and not for resale as TPP, and includes a sale of TPP by a seller who does not otherwise carry on business in Manitoba
Manitoba
• Exception
– Not required to register if the person’s taxable retail sales of
TPP and taxable services in the preceding calendar year did
not exceed $10,000 and the sales in the current calendar year
not expected to exceed $10,000Manitoba
• An NFP is not required to collect and remit if:
1. If sales are non-commercial and not commercially advertised
and do not compete with sales by other vendors
2. Tax has been paid on the FMV of the property
3. Organization does not sell tobacco or liquorDisclaimer Information is current to November 1, 2018. The information contained in this presentation is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
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