New sales tax legislation has gone into effect in Canada that will impact certain businesses outside of the country. Companies affected will need to register for Canada’s Goods and Services Tax (GST) and Harmonized Sales Tax (HST).

Companies will need to comply if they sell $30,000 CAD or more in products or services to Canadian customers (B2C) over a 12-month period. The rule went into effect on July 1, 2021, and applies to any 12 consecutive months of revenue.

Affected companies must collect, file, and remit Canadian HST/GST. To assess if your company is liable and to ensure compliance, we recommend you consult your tax accountant.

More details on this rule are available on the Government of Canada website.

If you are required to follow this rule, contact us today. We can help you set up Sage 500, Sage X3, or Acumatica to create, apply, and report Canadian taxes. If your organization has any complicated tax obligations, we can help you find a solution best suited for your needs.