Companies who make taxable sales and provide services in Canada may be subject to GST and the other Canadian provincial taxes. In general, commercial activities as defined by Canadian statute, are subject to GST. However, most of the GST that companies pay is recoverable in the form of input tax credits (ITC’s) which must be properly documented and applied.
In addition to the federal Goods and Service tax (GST), company’s doing business in Canada may be subject to the Provincial Sales Tax (PST), the Quebec Sales tax (QST), and the Harmonized Sales tax (HST) which is a combination of the PST and the GST in some provinces.
FandlGagnon’s Canadian goods and services tax services include data review, VAT registrations, VAT compliance, Input Tax Credit calculations, defending VAT positions on audit and appeals, and management reporting.
The recovery of ITC’s is an important aspect to GST compliance. According to the CRA, to claim an ITC, the expense must be “reasonable in quality, nature, and cost in relation to the nature of the business”. To be eligible, companies must have acquired, imported or brought into a province, property or services for consumption, use or supply in the course of the company’s commercial activities. Examples of ITC’s that generally qualify, include fuel cost, rent, maintenance and repairs, along with many others.
As part of our overall Canadian goods and services tax services, FandlGagnon offers industry-leading goods and services tax outsourcing services. We have filed returns with the CRA as well as all the provinces and territories. FandlGagnon’s outsource engagements are comprehensive and our services include preparation and filing returns, assistance with processing of tax payments, audit support, and management reporting.
Our secure on-line data warehouse gives clients access to all of their Canadian GST/PST/QST/HST documents including filings, notices, bills, and compliance calendars.