Effective July 1, 2021, significant changes to the goods and services/harmonized sales tax rules in Canada could lead to GST/HST obligations for businesses operating outside of Canada who sell to customers in Canada.
The existing GST/HST rules have generally allowed businesses who operated entirely outside of Canada to avoid any GST/HST obligations, even if the business was selling products or services to customers in Canada. The changes that will take effect on July 1, 2021, will require all businesses who sell to customers in Canada to review if the new rules apply to them.
If a business is subject to the new rules, it will be required to register for GST/HST by July 1, and will be required to charge and collect GST/HST on sales to customers in Canada starting on July 1. Additionally, businesses may have additional information gathering requirements under the new rules, which may require significant changes to enterprise resource planning and/or billing systems.
After listening to this recorded webcast, nonresident businesses can expect to:
- Have a better understanding of the upcoming changes
- Learn how their business may be affected
- Hear practical examples of the new rules in action