For businesses beginning to provide goods and/or services into a new jurisdiction, a frequent question is whether they have an obligation to register and collect sales tax. An often-underappreciated aspect of the Canadian federal value added tax system was the decision to harmonize the provincial sales tax with the administration of the federal goods and services tax, together forming GST/HST. Currently five provinces have opted for their provincial sales tax to form part of the federal GST/HST system (Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island). The GST/HST system requires one registration and return that covers the federal tax and the provincial tax for each of the harmonized provinces.
Continue ReadingInitially proposed during the 2021 Federal Budget, the Underused Housing Tax (“UHT”) and the commentary around it has continued to evolve over recent months. Intended as a tax on vacant or underused housing in Canada owned by non-residents, the UHT has attracted a lot of additional attention primarily due to its wide-reaching filing requirements and severe late filing penalties.
Continue ReadingOn September 14, 2023, Prime Minister Justin Trudeau announced plans to introduce new legislation to enhance the GST Rebate on new rental apartments. The new legislation is intended to incentivize construction of new rental homes and improve housing affordability for Canadians.
Continue ReadingA recent court case may have a significant impact on the way GST/HST registrants resolve GST/HST audits and examinations, confirming the general approach from the Canada Revenue Agency (“CRA”) is often overly strict. As you may know, registrants charge GST/HST on their sales and pay GST/HST on their purchases, with the difference being remitted to the CRA or eligible to claim back as a refund. If you have had the pleasure of dealing with CRA review, you will know that documentation is often one of the most prevalent issues under audit.
Continue ReadingThe Underused Housing Tax Act (the “UHTA”) came into effect from January 1, 2022. The rules for UHTA were enacted June 9, 2022, for residential properties owned on December 31 each year starting December 31, 2022. The Underused Housing Tax (“UHT”) rules require residential property owners to file an annual return, unless certain exemptions apply, even if no tax is due.
Continue ReadingGST/HST on Assignment of New Housing Agreements
Continue ReadingGST/HST Changes Effective July 1, 2021 As many of us have been confined to our homes during the pandemic for some or all of the past year, it should come as no surprise that online shopping platforms have flourished. Canadians have enjoyed the convenience and safety of shopping from their living rooms, confirmed in the Government of Canada's Fall Economic Statement, where it was noted that retail e-commerce was up nearly 70% in the first eight months of 2020.
Continue ReadingOn June 12, 2018, Quebec Bill 150 received Royal Assent. The Bill includes changes relating to the application of the Quebec Sales Tax (QST) to supplies made by suppliers with no significant presence in Quebec through the implementation of a new “specified registration system.”
Continue ReadingIf recent media attention, a job offer, travel plans to the U.S., or a new investment opportunity has you concerned about your U.S. personal tax filing requirements, you are not alone. Our U.S. tax team frequently gets asked this question.
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