Sales and Other Taxes

In the next series of blogs, we will provide a summary of the federal government and most of the provinces have sales tax regimes.

See Chinese version below [中文版参阅下文]

The federal government and most of the provinces have sales tax regimes.

Federal Goods and Services Tax

The federal government imposes a 5% multi-stage, value-added tax called the Goods and Services Tax (GST), which applies to taxable supplies (e.g., supplies of most types of property, including intangibles and real property as well as services) made in Canada. Certain types of property and services, including most financial services, are exempt for GST purposes and certain supplies, defined as zero-rated supplies, which include exports, are taxed at a rate of 0%.

GST is also levied on taxable goods imported into Canada, and there are self-assessment obligations on certain purchasers of imported services and intangibles.

The GST is a value-added tax and it applies at each stage of the production and distribution chain. Generally, businesses making taxable supplies of property and services must register for, collect and remit the applicable GST on their supplies made in Canada. While GST applies to every transaction throughout the distribution chain, it is imposed on the ultimate consumer; accordingly, businesses involved in commercial activities are entitled to recover the GST they pay through an input tax credit mechanism.

It is not always easy to determine whether supplies made to or by non-residents of Canada attract GST; accordingly, consideration of specific rules is required. For example, whether GST applies to recent e-commerce developments requires close examination.

销售税与其它税项概述

在接下来的博客系列中,我们将讨论联邦商品税销售税与其它税项机制。

联邦政府和大部分省份都设有销售税机制。

联邦商品和服务税

联邦政府对在加拿大制造的应税商品和服务供应(亦即,大多数类型的财产,包括无形财产、不动产和服务)征收一种5%多阶段的增值税,这里称为商品和服务税(简称“GST”)。有些财产和服务,包括大多数金融服务行业,免征GST,这里称为零税率供应,其中包括出口税率,税率为0%。

另外,GST也适用于进口到加拿大的应税商品。有些购买方有义务对进口的服务和无形资产价值作自我评估。

GST是一种增值税,这种税项在生产和销售的整个系列中分阶段征收。一般来说,供应应税商品或服务的企业必须登记注册,并在规定范围内对在加拿大供应的商品和服务收取及缴纳GST。尽管GST适用于在整个销售过程中的所有交易,但它由最终的消费者支付。因此,进行商业活动的企业有权通过进项税额抵免方式收回他们所上交的GST。

人们很难判断由非加拿大居民提供或购买的商品和服务是否应该缴纳GST;因此需要考虑具体的条例规定。例如,GST是否适用于近期发展起来的电子商务则有待于周密考量。

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