GST Registration for Non-Residents: Understanding “Carrying on Business in Canada” Requirements

• The report is part of the GST 101 Series focusing on GST/HST registration for non-residents in Canada.
• Non-residents carrying on business in Canada may need to register for GST/HST if they make a taxable supply in Canada.
• Business is broadly defined under ETA 1231 to include various activities but excludes office or employment.
• Carrying on business in Canada is not defined in ETA and relies on common law principles.
• Two key tests for determining business presence are the place of contract and location of profit operations.
• Additional factors like delivery and payment locations are considered in the analysis.
• CRA guidance provides insights but does not replace common law analysis.
• Significant presence in Canada is generally required for a non-resident to be considered as carrying on business.
• Isolated transactions in Canada may not constitute carrying on business.
• Expert legal advice is recommended for determining GST/HST registration requirements.

Source: taxandtradelaw.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.

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