Commodity Sales Taxes

The many amendments and changes which have occurred in sales taxes throughout the years have increased the confusion and errors made by the agents who must collect and remit such taxes.

Following are examples of these constant changes:

  • The adoption of harmonized sales tax (HST) in Ontario;
  • Elimination of the HST in British Columbia, as voted through a referendum by the citizen of the province, and re-establishment of the provincial sales tax;
  • An agreement between the federal and Quebec governments on a better harmonization of the goods and services tax (GST) and the Quebec sales tax (QST); and
  • An annual rate modifications to the QST.

As an agent, you are required to administer these laws when collecting sales taxes from your clients, to establish your remittances, taking into account your corporation's inputs and to remit the net balance within the period specified. You must also ensure complete and accurate documentation of each sale and purchase transaction.      

Therefore, it is crucial to understand when to apply the sales tax and to correctly understand your obligations and rights in that regard.

Amongst others, through the production of our comments regarding the Excise Tax Act (GST) and the Act Respecting the Québec Sales Tax (QST), which are published by Carswell, we have acquired the expertise to guide you through these ever changing tax matters.

Areas of Expertise

Commodity Sales Taxes

  • Assistance and preparation of tax forms
  • Claiming ITCs and ITRs
  • Establishment of the liability and obligations in inter-provincial trade
  • Planning in order to minimize the impact of commodity sales taxes in the acquisition of assets
  • Production of expert reports and acting as expert witness in a judicial process
  • Assistance and help with the establishment of your internal processes relating to sales tax
  • Assistance and representation before tax authorities relating to auditing and assessments   
  • Negotiation and litigation settlements with federal and provincial tax authorities