Every sale without proper GST registration is a risk – fix it now.

Goods and Services Tax(GST) is the value-added tax levied on the supply of goods and provision of services, besides imports and other types of transactions. The introduction of the GST on a country-based level has contributed to increasing public revenue; it has simplified indirect tax collection.

Countries from various regions have implemented the GST as their primary indirect tax imposed on supplies of goods or services. Based on their economic presence in the global landscape, we would indicate the following: India, Canada, New Zealand, Singapore, and Australia.

There aren’t any meaningful differences to be mentioned when we compare the two, such as how they are imposed on the supplies they cover. Both types are levied on the value added at each product or service supply chain stage. So, at each level of production or distribution. The differences are mainly seen in how the country or province within the country imposed the registration or filing requirements, to name a few.

Canada is one of the GST countries with a dual structure GST system. This means that the final GST levied on the transaction depends on the taxability rules established at the federal level and local(provincial) levels. Let’s illustrate this with a practical example – if the place of the taxable supply is within Quebec, two separate tax rates will be imposed: the federal GST and Quebec Sales Tax. This also means that the supplier(if it has sales outside Quebec but in Canada) will need to submit two returns: one GST/HST return for sales outside Quebec but in Canada and a QST return for sales in Quebec.

The answer to this question depends on several factors. Two initial parameters would be whether the business is looking to register for Canadian GST, a local business is carrying over a business in the country, or a non-resident business that will not have any establishment there. In most cases, the registration is transparent, fast, and online. We have an extensive experience with registration and GST compliance services in Canada.

The Goods and Services Tax(GST) and/or Provincial Sales Tax(PST) are usually imposed when the digital marketplace facilitator enables or facilitates the supply of accommodation services between the service providers and customers in the country. To be sure about taxability rules and regulations surrounding the supply of accommodation services through the e-marketplace, we need to be aware of the terms and conditions between the platform and provider, as well as the main activity of the platform operator.

It depends on whether the supplier has or doesn’t have any sort of physical presence in the country. The Singaporean tax authority has established a simplified GST registration and filing framework for non-resident digital service providers.

Canada has a dual GST system in place, meaning that the federal and Provincial Sales Tax rates determine the tax rate for the taxable supply. Some provinces have adopted a Harmonized Sales Tax(HST), where federal GST and local PST are unified, and provinces have independence regarding PST. So, registration requirements and filing procedures can differ between federal GST/HST and PST returns. This also covers the distinction between filing procedures between provinces that handle their PST separately. 

Penalties vary depending on the jurisdiction of the tax authority. The non-compliance with provincial sales tax requirements differs depending on the jurisdiction concerning the place of the supply rules. In Canada, penalties and interest payments often result from late GST registration and filing.

Penalties vary depending on the type of non-compliance. The penalties for late filing of returns can start at ₹100 per day for late-filed returns.

Non-resident digital service providers registered under the simplified registration regime are subject to the same penalty and compliance regime as domestic GST-registered persons.

The registration regime for non-resident suppliers and e-marketplace operators is based on two cumulative conditions. The first covers the global turnover, and the second is based on the B2C supplies of remote services and imported low-value goods when the place of supply is within the country.

The GST-registered non-resident digital platform operator should collect and remit payable GST for third-party non-resident providers of digital services made through its platform.

This depends on the location of your Canadian customers. Suppose your customers are based in the provinces that aren’t part of the unified GST/HST regime. In that case, you should also register for provincial sales tax, e.g., in British Columbia or Manitoba.