- Canada has specific place-of-supply rules for digital services by non-resident providers.
- These rules follow a destination-based principle for B2C transactions.
- Non-resident providers must register for Canada GST when they reach the required threshold.
- Registration can be under a simplified or normal GST scheme.
- Tax responsibility may vary based on who is deemed responsible under GST rules.
- If a non-resident provider supplies directly to Canadian customers, they are responsible for GST compliance.
- If a digital platform operator facilitates the supply, tax responsibility may shift to the platform operator.
- Additional information is available in Canada tax guides.
Source: 1stopvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Canada"
- Navigating CRA Audits: How Canadian Companies Can Reduce Proposed GST/HST Assessments
- CRA Waives Late-Filing Penalty for Amended GST Returns Filed Before Deadline
- The Sales Tax Requirements of Selling Into Canada
- Canada Removing Tariffs for U.S. Goods Covered under CUSMA
- GST Registration for Non-Residents: Understanding “Carrying on Business in Canada” Requirements
