Question: When Should I Charge HST Or GST?

Do you charge tax on design services?

Design fees to your client are taxable even if you pay tax on furnishings to your vendors.

Goods are taxable only when the sale is considered “complete”.

Deposits and retainers are not taxable.

Design fees that are based on a percentage markup of goods are taxable at the sales tax rate..

Do I charge GST to US customers?

GST With Foreign Clients As a general rule, goods that are exported outside of Canada and services rendered to non-residents are zero-rated under the GST/HST rules. This means that they’re technically taxable, but at a rate of 0%, you don’t have to charge anything.

What is exempt from HST?

Consumers do not have to pay HST on exempt items including: Qualifying food and beverages, including basic groceries but not alcoholic beverages, soft drinks, candy, snack foods, etc.

Is GST applicable on electricity?

Electricity bills can have a goods and services tax (GST) component at times. Non-tariff charges, which include application fee for releasing connection, rentals charged against metering equipment and labour charges for shifting of meters and service lines, are liable to taxed at 18% under the GST.

Is GST charged or HST?

If you sell goods and services in Canada, you must charge customers the goods and services tax (GST) or the harmonized sales tax (HST), unless your business qualifies as an exception.

When did GST change to HST?

July 1, 2010Consequently, in 2008 and 2009, the provinces of Ontario and British Columbia entered into negotiations with the Government of Canada for adopting the HST. On March 26, 2009, in its annual budget, the province of Ontario announced its intention to merge the PST and GST to take effect on July 1, 2010.

Who is exempt from GST?

Businesses and individuals are exempt from GST if their annual aggregate turnover is less than a specific amount. At the time of GST implementation in July 2017, businesses/individuals with annual aggregate turnover of less than Rs. 20 lakhs were allowed GST exemption. A lower limit of Rs.

What is the purpose of HST?

The harmonized sales tax combines federal and provincial sales taxes into one lump tax rate in some Canadian provinces. Any business that sells taxable goods and services worth more than a total of $30,000 over the previous four quarters is required to register for a GST/HST account.

Do small businesses have to charge HST?

If your business will collect over $30,000 in revenue a year, you’ll be required to charge and remit GST/HST. But let’s say your business is a part-time gig, it might stay under that threshold and you’d then be considered a “small supplier”.

Is HST collected considered income?

Some amounts do not need to be included in your gross income. For business owners, this can include any GST/HST credits, most gifts and inheritances, lottery winnings and most amounts received from a life insurance policy following an individual’s death.

Where is GST not applicable?

What goods and services are not covered under the GST? Items that are exempted from GST are live fish, fresh fish, bird’s eggs in the shell, fresh milk, fresh ginger, garlic, grapes, melon, unroasted coffee beans, unprocessed green tea leaves, etc. Corn, rice, wheat, maize, soybean, hulled cereal grains, etc.

Do you have to charge HST under $30000?

Most people know that, under the GST/HST, a “small supplier” with sales under $30,000 per year does not need to charge GST/HST on their sales. … Second, when counting the $30,000 threshold, you must total up not only your own sales, but also those of other persons with whom you are “associated”.

How do I calculate HST from a total?

Price x 12 (HST percentage) / 112= HST. The original price before HST would be $150.00, and the HST would be $18.00, totalling $168.00.

How much is HST in ontario2020?

Current HST rate for Ontario in 2020 The HST for Ontario is calculated from Ontario rate (8%) and Canada rate (5%) for a total of 13%.

Is GST required below 20 lakhs?

A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.