Canadian Money Forum banner

1 - 4 of 4 Posts

·
Registered
Joined
·
6 Posts
Discussion Starter · #1 ·
I am a software engineer and and I am contracting a a programmer for US company from Massachusetts who has an office in Montreal. I am still not sure if I have to charge GST/HST to my US client?

I have called revenue quebec twice and I got two different answers.
The first answer is that I cannot charge a foreign customer who doesn't have a GST number and the second time when I called I have been told that I have to charge the US client because I am not selling selling a tax free product.

According to my research is GST + QST is only for customers from Quebec . How am I supposed to add 20% of taxes for a customer who has no GST number?

Taking in account that even quebec revenue office is providing misleading informations where can I get any certified declaration with a statement that my customer is excluded from GST/HST obligation?
 

·
Registered
Joined
·
3,451 Posts
I would say the complicating matter here is that they have an office in Montreal. Who is paying you, the local Montreal office or the Massachusetts office?

The guidelines from CRA say that you don't need to charge foreign customers, UNLESS they take delivery in your local province. I would guess that the question here is who do you work with/for? Who approves your work? Is it someone in Montreal or Massachusetts?

http://www.canadabusiness.ca/eng/pa..._territory_customers_and_to_foreign_customers

Also, since they do have an office in Montreal, I'd be surprised if they don't have a GST number. If they don't, that means they have to pay GST on any purchases they make for their office. I would think they would want to avoid that and would register for a GST number. But of course I don't know.

Also please note I'm not an accountant, just trying to be helpful.
 

·
Registered
Joined
·
368 Posts
What in the world does the client having a HST number matter? Consumers don't have HST numbers and they're still charged.Furthermore, you have to charge a US company for anything delivered in Canada. This is actually the interesting part as you are working in Canada, so it would be up to your contract to determine the delivery location. The safest bet is to have them run it through their Montreal location, that way they can get back the ITC and it makes it simple for you.
 

·
Registered
Joined
·
6 Posts
Discussion Starter · #4 ·
Yes the delivery server is hosted in Montreal and the work approval goes through the Montreal office so it makes sense to include the GST/HST into the bill.
Thank you for above analyzes guys both of them are helpful.
 
1 - 4 of 4 Posts
Top