On July 1, 2021, broad new Canadian sales tax (GST/HST) registration requirements will come into effect, requiring many non-Canadians to become registered to collect such tax on sales of tangible property, intangible property and all manner of services to Canadian customers. The provinces of British Columbia, Saskatchewan and Quebec have also recently implemented new rules that greatly expand the registration requirements for both Canadian and non-Canadian entities that make sales into these provinces. These rules are also generally designed to require registration for entities that sell accommodation services to non-Canadians if the accommodations are located in Canada and for entities that operate digital sales platforms that facilitate sales to Canadians.
Fasken has created a free online Sales Tax Registration Diagnostic Tool designed to help you determine whether you (or another entity) needs to register to collect sales tax under any of these new rules. After answering a series of questions, the tool will provide a report with our preliminary findings about the entity's registration requirements.
This tool should be used by any non-Canadian entity that makes supplies of any property or services to Canadians, or that operates a digital platform facilitating such sales, and that is not already registered for GST/HST purposes. It should also be used by Canadian entities that are selling property or services to customers in Quebec, Saskatchewan and/or British Columbia and that are not already registered to collect provincial sales taxes in those provinces.
After using the tool, you will have an opportunity to contact Fasken directly to discuss the findings described in your report.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
