As the economy chills, the Canadian federal and provincial taxing authorities are becoming hungry for more revenue. This means that U.S. companies with Canadian customers may need to ensure the correct tax is paid or face a potential levy.
Canada has three types of sales taxes:
• Provincial sales taxes (PST)
• Goods and Services Tax (GST), a value added tax levied by the federal government
• Harmonized Sales Tax (HST), a value added tax levied by some provinces
Complexity arises because the HST is a value added tax (charged to the Canadian dealer of your products) and because the tax varies by province. For example, the New Brunswick HST is 8% and the Nova Scotia HST is 10%.
Your DCS EDI Specialist can configure properly your EDI (810) invoices to Canadian customers. The first step is our free assessment.
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