HST - New tax for canadian business owner
Thread poster: Nicole Dargere

Nicole Dargere
Canada
Local time: 10:02
English to French
+ ...
Jul 3, 2010

As of July 1, 2010, a new tax has been established: the HST, which is a total of 12%. In the past I used to charge the GST tax (5%). Now this tax + the pst have been put together in a new tax called HST.
Should I charge the new HST 12% on my translation work to my Canadian clients from now on?
Tank you in advance for your replies.
Nicole


 

Johanna Timm, PhD  Identity Verified
Canada
Local time: 10:02
Member (2002)
English to German
+ ...
Info Jul 3, 2010

Hi Nicole!

The following info was sent out a while ago by the STIBC. Here's an excerpt:

After July 1st, 2010, those who registered for GST, i.e. who make more than $30,000 per year, are automatically registered for HST.

For translators doing business nationally or globally, Canada Revenue has "Place of Supply" Rules.
- If a BC self-employed translator provides translation services for an Alberta client but performs the translation services in BC and sends the translation over to Alberta, then 12% HST needs to be billed.
- If a BC self-employed translator provides translation services for an Alberta client but travels to Alberta to perform the translation service, then 5% GST applies because Alberta does not have HST.
- Clients in the USA or Europe are not charged HST, just as they are not charged GST.

A pdf with more details (53 pages) on Place of Supply rules is available via the Canada Revenue site http://www.cra-arc.gc.ca/E/pub/gm/b-103/b-103-e.pdf.

In summary, it appears that as provincial taxes vary from province to province, more options are possible than before with the national GST only. International options are mainly unchanged.

Happy HST-ingicon_smile.gif

johanna


 

Nicole Dargere
Canada
Local time: 10:02
English to French
+ ...
TOPIC STARTER
THE INFAMOUS HST TAX... Jul 5, 2010

Dear Johana,

Thank you for your quick reply. I am off to France for 5 weeks... where the weather is HOT... HOT... HOT... I think I will miss the COLD summer of B.C....
Wishing you a great summer!
Nicole

[Edited at 2010-07-05 15:05 GMT]

[Edited at 2010-07-05 15:05 GMT]


 

Tom Ellett  Identity Verified
United Kingdom
Local time: 18:02
Swedish to English
+ ...
Place of supply rules Jul 5, 2010

I beg to differ with the STIBC's interpretation of the new place of supply rules for GST/HST.

The relevant example in the Canada Revenue Agency's information bulletin (http://www.cra-arc.gc.ca/E/pub/gm/b-103/b-103-e.pdf) seems to be Example 70 on page 29:

A supplier in Quebec agrees to design the Web site of a company in Ontario. The service is performed entirely in Quebec. The only business address of the recipient obtained by the supplier in the ordinary course of its business is in Ontario.

Since the only business address of the recipient in Canada that is obtained by the supplier in the ordinary course of its business is in Ontario, the supply of the service is proposed to be made in Ontario and subject to HST at a rate of 13%.

Basically the rule is that, so long as you have an address for the client, it is the client's location that determines whether you charge GST or HST, and at what rate. Only if you don't have the client's address is the tax based on the supplier's location. I can't imagine any serious translator not obtaining an address for the client.


 

Marie Claude Etoc  Identity Verified
Canada
Local time: 10:02
Member
French to English
+ ...
TAXES THAT APPLY IN QUEBEC Jul 17, 2010

I am a translator in Vancouver, BC and need to invoice a client in Montreal. What taxes need to be collected.

So far I have been trying to avoid dealing with translations in Canada and keep to providing services to USA nd International in order to avoid having to deal with having to figure out the percentages that needs to be collected but knew sooner or later would need to deal with this.

Thanks to everyone and their input I have managed to find out other provinces except Quebec.

Much appreciated.

Marie Claude


 

Tom Ellett  Identity Verified
United Kingdom
Local time: 18:02
Swedish to English
+ ...
Federal GST only Jul 19, 2010

Marie Claude:

In a case like yours (you're in one province, your client in another), the place of supply rules say that you should charge GST/HST at the appropriate rate for your client's location. Since Quebec is not a "participating province" for HST, you would charge your client the federal GST only, i.e. 5%.

However, if your client was in Ontario, which is a "participating province," you would charge them 13% HST.

Hope this helps!

Tom


 

Marie Claude Etoc  Identity Verified
Canada
Local time: 10:02
Member
French to English
+ ...
TAXES THAT APPLY IN QUEBEC Jul 23, 2010

Thanks for the responses this helps a great deal.

Marie Claude


 


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