ARTICLE · 02 AUGUST 2017

Performing in Canada – The GST Blues

Crowe Soberman LLP

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Over 25 years after it was first introduced in Canada, the Goods and Services Tax ("GST"), while simple in concept, remains one of the more confusing taxes in Canada to apply, especially when it comes to non-residents.

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Jeffrey Steinberg

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Over 25 years after it was first introduced in Canada, the Goods and Services Tax ("GST"), while simple in concept, remains one of the more confusing taxes in Canada to apply, especially when it comes to non-residents.

The GST is a Canadian federal value added tax. Similar to other value added type taxes from around the world and unfamiliar to those in the United States, the GST for most businesses, is intended to be a cost only to the person who consumes the good or service. An entity, like a business, who is not the end consumer, would normally be able to recover any GST paid. At the same time, it is the responsibility of the business to collect GST on each sale of good or service that it provides in Canada.

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