I am a US citizen living and working in Canada for a small US company that provides consulting services to a large Canadian company. I am considered an independent contractor; and am paid in US dollars to my US bank account. My employer automatically deducts 15% for Canadian taxes. Recently, the other US contractors for this company (including myself) were instructed to begin charging 13% HST. I've researched HST and understand that a blanket statement to charge HST is not acceptable, because it does not begin until after the first $30,000 (and that start date varies drastically for each worker). My question is, should we even be charging HST as independent contractors in the first place?
There is no minimum amount before you can start charging HST, only a maximum beyond which you must charge HST (if it is taxable). Even if your taxable sales are $1 you can charge HST. If your sales are only taxable and zero-rated services, it's to your advantage to do so since you can take advantage of input tax credits.