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PolarBear2019
May 30, 2020 1:58 PM UTC
Question

Canadian Consulting Company with USA Clients - Sales Tax Question

Hi All,

 

I need some help from the Community.

 

We are a Canadian company. We have a few Clients in the USA for which we deliver IT consulting services. The work is performed in Canada and mainly overseas.

 

As far as I know, we should be billing USA Clients as zero-rated for sales tax. Is this correct? 

 

Thanks,

 

Rory

1 reply

LeithG
LeithG
Jun 18, 2020 5:16 PM UTC

https://canadabusiness.ca/government/taxes-gst-hst/federal-tax-information/overview-of-charging-and-collecting-sales-tax/

Foreign customers (outside of Canada)
If you sell goods or services to customers outside of Canada, you are not required to collect GST/HST or PST, provided they take delivery of the goods or services outside of Canada. The service must be wholly used outside of Canada. If non-resident customers, such as tourists, make purchases within your province or territory, they are required to pay the GST/HST and PST. In some cases, they may be eligible to receive a GST/HST rebate.

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