What is Data Governance and Why is it Important for Canada?
data governance is the establishment of decision rights and an accountability framework to ensure...
The Canadian Sales Tax system can be a real headache.
For this reason, our experts have compiled and answered your most frequently asked questions on Canadian Sales Tax.
Sales taxes or consumption taxes are government fees levied on taxable goods and services. The different sales taxes you may encounter in Canada include Goods and Services Tax (GST), Harmonized Sales Tax (HST), and Provincial Sales Tax (PST).
Taxes levied depend on the province or territory. All of Canada is susceptible to the Goods and Services Tax (GST). GST is a federal sales tax that is set at a rate of 5%.
In addition to the GST, some provinces and territories (with the exception of Alberta, Nunavut, Northwest Territories, and Yukon) also have a provincial sales tax (PST/RST/QST), which is added on top of the GST:
Some provinces combine the GST with their PST creating a single tax known as the harmonized sales tax or HST, that is administered by the Federal government:
A registered business/individual must file a sales tax return with the Canada Revenue Agency (CRA ) and/or with the respective governing tax body in their province on a monthly, quarterly, or annual basis.
A tax return is a document where revenues, deductions, and credits are reported to determine if one will receive a refund or if one will have to remit money to the government. A tax refund will occur if the taxpayer has paid more in taxes on their purchases than the taxes they owe or have collected on their sales. The government will then remit the excess amount to them
Sales tax recovery is the process of recovering the sales tax paid on purchases made in Canada. The recovery is done through a refund of the GST or HST paid on eligible purchases that were determined through a detailed analysis as having not been refunded previously.
Both Canadian and foreign companies of all sizes, who are registered for the respective sales taxes and who make taxable purchases of goods and services within Canada, can participate in a sales tax recovery.
Due to the complexity and multi-level integration of the Canadian sales tax system, determining the amounts to recover may require the help of a Canadian Sales tax expert. With the help of an expert, businesses of all sizes gain access to funds that may have otherwise been missed and are able to generate growth while remaining focused on their business. Schedule your free consultation with one of our experts today to get started!
Our in-house team has 20+ years of experience and can identify missed opportunities and errors that can contribute to your cashflow.
Head of Sales Tax Consulting Team
Sales Tax Consulting Manager
Sales Tax Consulting Manager
Explore our latest insights
More arrow_forwardWhat is Data Governance and Why is it Important for Canada?
data governance is the establishment of decision rights and an accountability framework to ensure...
Blockchain 101: A Beginner’s Guide to Social Impact and ...
Discover blockchain technology in this beginner's guide and learn about its potential for social ...
Sustainable Agriculture: Eco-friendly Innovation to Feed the W...
This article will explore how innovation is driving sustainability in the agricultural industry, ...
Bidirectional Encoder Representations from Transformers
The technological objective of Bidirectional Encoder Representations from Transformers (BERT) was...