US & Canada - Tax
Lily Lo CPA Professional corporation
what is the gst/hst?
Goods and services tax (GST) - a tax applies to most supplies of goods and services made in Canada.
The harmonized sales tax (HST) - is implemented in participating provinces where GST is harmonized with their provincial sales tax.
Who has to register for a gst/hst account
GST/HST registrants have to collect the GST/HST on all taxable supplies of property and service they provide to their customers.
You have to register for a GST/HST account if both situation apply:
If you provide exempt supplies only, you cannot register for a GST/HST account.
how does the gst/hst work
If you are a GST/HST registrant, you have to
You can claim Input Tax Credits (ITCs) on your GST/HST return to recover the GST/HST paid or payable on purchases and expenses to the extent you use, consume, or supply them in your commercial activities.
You can deduct your ITCs from the GST/HST you charged your customers when you complete the GST/HST return. The result is your net tax.
US & Canada Tax - Lily Lo CPA Professional Corporation - Edmonton, Alberta