I have a corporation registered in BC, Canada. I provide custom software development services to companies outside of Canada. Do I need to collect GST/PST ?
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2This question appears to be off-topic because it is about corporate finance rather than personal finance. See money.stackexchange.com/help/on-topic but note that I may be mistaken.– ChrisInEdmontonCommented Jul 17, 2013 at 15:30
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1@ChrisInEdmonton There's a small-business related meta discussion: Are small business questions on topic? This didn't strike me as off-topic because correctly charging GST/HST is a tax issue that all self-employed people in Canada have to deal with (and whether they are incorporated, or not) and charging this tax and claiming the input tax credits affects the bottom line for those of us (myself included) who work as contractors, freelancers, etc.– Chris W. ReaCommented Jul 17, 2013 at 21:01
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1 Answer
If you charge clients outside of province, you don't need to collect PST, and if outside of Canada, you don't need to collect GST.
Generally, GST/HST registrants must charge and account for the GST on taxable supplies (other than zero-rated supplies) of property and services made in Canada. However, where GST/HST registrants make taxable supplies (other than zero-rated supplies) in Canada, and those supplies are made in a participating province, they must charge and account for the HST instead of the GST.
PS: I think you should consult with Canada Revenue anyway. From my experience: I had sole proprietorship in Quebec, when I had clients from Ontario, I collected only GST, when I had clients in US, I didn't collect taxes at all.
