SEPTEMBER LEARNING KURVE

Changes to Sales Tax in the U.S.

Implications of the wayfair case for companies with U.S. customers

Historically, companies that make sales of goods or taxable services to U.S. customers were only required to collect state and local sales taxes in jurisdictions in which they had a physical presence (eg. store, warehouse, office), either directly or through an agent.

New Rules for Large Businesses

Input tax credit recapture and input tax refunds restrictions

In the past, large businesses, defined as organizations that exceed $10 million in taxable and zero-rated revenues during their fiscal year (including revenue from related entities), have been required to repay a portion of their input tax credits (ITC) claimed on the provincial part of the harmonized sales tax (HST) paid or payable on specified services or property in Ontario.

Reminder to Update Changes in your Marital Status

Requirement to report to CRA

Your marital status has an impact on your tax situation and the benefits you may receive from the government. Through the filing of a T1 personal income tax return annually, taxpayers report their income and provide CRA with information that is used to determine eligibility for certain benefits such as the goods and services tax/harmonized sales tax (GST/HST) credit and the Canada Child Tax Benefit (CCB).

CRA Issues Clarification on T4A Reporting Requirements

Requirement to report payments to service providers for U.S. companies

U.S. companies that operate in Canada must be aware of their reporting requirements in Canada.  Most U.S. companies are familiar with the requirement to report payments to U.S. based service providers through form 1099-MISC. Canada has a comparable service payment reporting requirement, known as the T4A slip/return.

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