HST for Canadian Product Providers

6 replies
So I have a question. I'm Canadian and have coaching sites where people pay subscriptions for coaching/training. Anyhow, it was my understanding that I only had to worry about HST IF a Canadian subscribed but didn't have to if anyone outside Canada subscribed.

Apparently I was wrong.

The HST person feels that because my company is in Canada it does not matter who subscribes. It could be someone in the US, UK, AUS or anywhere outside of Canada and they would have to pay HST.

I'm completely confused. My accountant said the same thing that I thought, but now I'm getting a different story from the government.

Anybody know this or have experience with this?
#canadian #hst #product #providers
  • Profile picture of the author Joe Russell
    Originally Posted by PPC-Coach View Post

    So I have a question. I'm Canadian and have coaching sites where people pay subscriptions for coaching/training. Anyhow, it was my understanding that I only had to worry about HST IF a Canadian subscribed but didn't have to if anyone outside Canada subscribed.

    Apparently I was wrong.

    The HST person feels that because my company is in Canada it does not matter who subscribes. It could be someone in the US, UK, AUS or anywhere outside of Canada and they would have to pay HST.

    I'm completely confused. My accountant said the same thing that I thought, but now I'm getting a different story from the government.

    Anybody know this or have experience with this?
    Taken from here:
    PST - HST - GST - Charging Provincial Sales Tax on Online Sales in Canada


    "GST and HST

    We can't talk about provincial sales tax (PST), though, without talking about the Goods and Services Tax (GST). Generally, if you are selling taxable goods and/or services to people in Canada, you will be charging and remitting GST to the federal government. (You will not charge GST on taxable goods and/or services shipped to people in other countries, such as the U.S.)"


    Joe Russell
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  • Your HST person is saying that you should charge HST, "a foreign tax" to someone who resides and purchases your service from outside of Canada? This makes no sense at all!!

    We certainly don't charge HST to anyone who is not physically living or shopping in Canada.

    Maybe if a customer came to Canada in person and walks into a retail store, and or your service, then most likely they are charged HST at the cash register. That would sort of make sense.
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    • Profile picture of the author PPC-Coach
      Originally Posted by stoltingmediagroup View Post

      Your HST person is saying that you should charge HST, "a foreign tax" to someone who resides and purchases your service from outside of Canada? This makes no sense at all!!

      We certainly don't charge HST to anyone who is not physically living or shopping in Canada.

      Maybe if a customer came to Canada in person and walks into a retail store, and or your service, then most likely they are charged HST at the cash register. That would sort of make sense.
      My thoughts exactly, which is why I was totally broadsided by this meeting this morning I just had.
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  • Profile picture of the author PPC-Coach
    Thanks Joe,

    That was my understanding. I'm now going through and using an ip lookup database to see exactly where everyone came from. I guess the government just wants money.

    As usual.

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  • Yes, if you do not have someone else collecting taxes on it, then you are responsible for collecting the taxes according to the appropriate tax laws.
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  • Profile picture of the author Mike Hill
    When American's shop online and buy stuff from a Canadian store and get it shipped to the USA or a Canadian buys stuff online from a USA store and gets it shipped to Canada NO HST or other tax is collected by the company.

    They cannot force you to pay a tax from a foreign purchaser. I suggest you send them a copy of the tax laws with the portion highlighted. If that doesn't work, say you want to speak with someone above them who is in charge.

    This is the problem with Government workers... you can ask the exact same question to 2 different agents and get completely and conflicting answers. Also, ask them you want everything they told you in writing with references.
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