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ARTICLE · 03 MAY 2021

Canada Introduces New GST/HST Regime For Non-resident Businesses

Borden Ladner Gervais LLP
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On July 1, 2021, new rules take effect that significantly broaden the obligations of non-resident businesses to register for and comply with the Goods and Services Tax/Harmonized Sales Tax.

CanadaTax
Bobby Solhi
Bobby Solhi
Braek Urquhart
Braek Urquhart
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What you need to know

  • The new GST/HST regime is effective as of July 1, 2021.
  • Non-resident vendor can trigger GST/HST registration, even if it is not carrying on business in Canada or provides services or products entirely outside of Canada.
  • Non-GST/HST-registered vendors with Canadian clients must now keep records to prove they are not obligated to register.
  • Certain Canadian clients may continue to have a GST/HST self-assessment obligation under the current rules, of which they may not necessarily be aware.
  • Canadian clients with non-resident vendors should understand these rules to avoid compliance traps.

The Simplified Registration Regime

On July 1, 2021, new rules take effect that significantly broaden the obligations of non-resident businesses to register for and comply with the Goods and Services Tax/Harmonized Sales Tax (GST/HST)  rules under a so-called simplified registration regime (the Simplified Registration Regime). The

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