How to I charge GST/HST/QST in this situation?
November 11, 2022 2:02 PM Subscribe
I am based in Toronto, Ontario. I'm offering consulting services, which will be conducted entirely online, remotely, to a client in Quebec. (ie: they will be in Quebec the whole time, I will stay here in Ontario) How do I charge GST/HST? Is there some online source that explains this? Thanks!!
If you are invoicing all clients for under $30K/quarter
Gah. This should read: "$30k/quarter or a full year."
Per CRA:
Small supplier means a person whose revenue (along with the revenue of all persons associated with that person) from worldwide taxable supplies was equal to or less than $30,000 ($50,000 for public service bodies) in a single calendar quarter and over the last four consecutive calendar quarters.
posted by mandolin conspiracy at 2:46 PM on November 11, 2022
Gah. This should read: "$30k/quarter or a full year."
Per CRA:
Small supplier means a person whose revenue (along with the revenue of all persons associated with that person) from worldwide taxable supplies was equal to or less than $30,000 ($50,000 for public service bodies) in a single calendar quarter and over the last four consecutive calendar quarters.
posted by mandolin conspiracy at 2:46 PM on November 11, 2022
Also, check with your college and insurance. Many therapists cannot practice out of province, even residents. (So counselling an Ontarian in Quebec).
posted by Yavsy at 3:27 PM on November 11, 2022
posted by Yavsy at 3:27 PM on November 11, 2022
Mod note: A few deleted. Please keep comments focused on answering OP's question.
posted by travelingthyme (staff) at 6:42 PM on November 11, 2022
posted by travelingthyme (staff) at 6:42 PM on November 11, 2022
The guidance you’re looking for is the Place of Supply rule. Here’s a CRA page that explains the place of supply rules in fairly plain language.
Look under “Services -> General Rule 1.” In your situation, you should likely charge 5% GST.
I’m assuming based on the information in your question that you’re not a QST-registrant and don’t need to be, so you wouldn’t add any QST to your fees.
posted by bkpiano at 6:44 PM on November 11, 2022 [2 favorites]
Look under “Services -> General Rule 1.” In your situation, you should likely charge 5% GST.
I’m assuming based on the information in your question that you’re not a QST-registrant and don’t need to be, so you wouldn’t add any QST to your fees.
posted by bkpiano at 6:44 PM on November 11, 2022 [2 favorites]
Note also that if you do register for the GST, it is most likely financially advantageous for you to elect to use the Quick Method of accounting. Not only is this simpler for you, it results in you getting to keep more of the GST you charge, unless you have some kind of special situation that makes this not a good deal for you financially. You need to fill out a form to make this election, so it makes sense to do it at the same time as you register.
Even if you don't have to register for the GST as a small supplier, it may be advantageous for you to do so and elect to use the Quick Method (depending also on how the 5% GST would affect your relationship with your customer).
This probably doesn't apply here, but just in case: if your client is a business in Quebec who are themselves registered for QST, you are fine just charging GST (they are supposed to self-assess QST), but if your client is an individual or otherwise not registered for QST and you are charging more than $30,000 per year to those in Quebec, then you do in fact have to register for and charge QST. Here are details. Quebec, as always, has to be special.
posted by ssg at 1:34 PM on November 12, 2022
Even if you don't have to register for the GST as a small supplier, it may be advantageous for you to do so and elect to use the Quick Method (depending also on how the 5% GST would affect your relationship with your customer).
This probably doesn't apply here, but just in case: if your client is a business in Quebec who are themselves registered for QST, you are fine just charging GST (they are supposed to self-assess QST), but if your client is an individual or otherwise not registered for QST and you are charging more than $30,000 per year to those in Quebec, then you do in fact have to register for and charge QST. Here are details. Quebec, as always, has to be special.
posted by ssg at 1:34 PM on November 12, 2022
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If you are invoicing all clients for under $30K/quarter, you are a small supplier and not required to charge GST/HST. If this applies to you and you don't want to go through the admin of HST/GST registration, you can just note on your invoices "as a small supplier under the Income Tax Act, no GST.HST has been applied to this invoice."
See also: When to register for and start charging the GST/HST
posted by mandolin conspiracy at 2:39 PM on November 11, 2022 [2 favorites]