Oct 29, 2010 - Announcements, Finances, Taxes    1 Comment

GST and HST for Canadian Full-Time RVer Independent Contractors

On Fridays, I write about financial issues that affect Canadian Full-Time RVers.

The recent implementation of HST in two of Canada’s biggest provinces, BC and Ontario, affects Canadian full-time RVers who are independent contractors.

While tax rules are never easy to navigate and their are a lot of nuances, there is one important thing to remember:

When invoicing clients in these provinces and the Maritimes, you must now charge them the provincial HST rate rather than GST, even if you are not registered in a HST province or territory. Similarly, if you are registered in a HST province, you would not charge HST to a client in a province or territory that charges GST. Moreover, your GST number works for claiming and filing HST, and vice versa.

In other words, the tax rate is determined by where the service is being supplied to rather than by where the work is being done.

For fun bedtime reading, be sure to check out CRA’s updates at the GST/HST site.

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