{"id":5045,"date":"2021-06-18T12:27:58","date_gmt":"2021-06-18T16:27:58","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=5045"},"modified":"2024-12-01T16:55:16","modified_gmt":"2024-12-01T21:55:16","slug":"new-gsthst-requirements-for-non-resident-vendors","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/new-gsthst-requirements-for-non-resident-vendors\/","title":{"rendered":"New GST\/HST Requirements for Non-Resident Vendors"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Next month, there will be some notable updates made to the <a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/difference-between-gst-hst-and-pst\/\">GST\/HST<\/a> requirements for non-resident vendors. It was announced that the Government of Canada will be implementing new tax measures that will focus primarily on the \u201cdigital economy\u201d, as stipulated in the Government of Canada\u2019s Fall Economic Statement.\u00a0<\/span><\/p>\n<p><b>As a refresher, <\/b><a href=\"https:\/\/www.trade.gov\/canada-non-resident-importer-program\"><b>a non-resident importer<\/b><\/a><b> is defined as:\u00a0<\/b><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201c[&#8230;] A business located outside of Canada that ships goods to customers in Canada and assumes responsibility for customs clearance and other import-related requirements. This program allows the exporter to include all shipping, customs clearances, duties and taxes in the shipping and handling fees charged to the customer, who could even be charged in Canadian dollars. In this way, the transaction appears to the Canadian consumer as a domestic transaction.\u201d\u00a0<\/span><\/p><\/blockquote>\n<p>The benefits of the non-resident importer program, includes, but is certainly not limited to:<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Certainty in the fees, pricing, and other payable amounts to be paid by the importer.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Streamlines the overall trade process.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Increases the NRI\u2019s competitive advantage over others.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Improve control over the shipment process.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Expands the NRI\u2019s general market reach.<\/span><\/li>\n<\/ul>\n<p><b><i>Recommended Reading:\u00a0<\/i><\/b><\/p>\n<p><span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/clearit.ca\/services\/non-resident-importing\"><i>Non-Resident Importing Program<\/i><\/a><\/strong><\/span><\/p>\n<p><span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/becoming-canadian-non-resident-importer\/\"><i>Becoming A Canadian Non-Resident Importer<\/i><\/a><\/strong><\/span><\/p>\n<h2><b>What new GST\/HST measures were proposed?\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There are 3 main subjects to which these new measures are related to\u2026\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The movement of digital products in a cross-border manner<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Shipment of goods that are supplied through fulfillment warehouses within the jurisdiction of Canada<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Short-term accommodation that is primarily platform-based.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-5048\" src=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/\/2021\/06\/pexels-markus-spiske-1089440-1024x682.jpg\" alt=\"non-resident digital platform\" width=\"600\" height=\"400\" srcset=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2021\/06\/pexels-markus-spiske-1089440-1024x682.jpg 1024w, https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2021\/06\/pexels-markus-spiske-1089440-300x200.jpg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<p><strong>A platform, as defined on the Government of Canada website, is:\u00a0<\/strong><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201c[&#8230;] A digital platform would be a website, an electronic portal, gateway, store or distribution platform or any other similar electronic interface, but would exclude an electronic interface that solely processes payments.\u201d For further information on this definition,<\/span><span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/programs\/about-canada-revenue-agency-cra\/federal-government-budgets\/faq-relation-electronic-commerce-supplies.html\"> click here.\u00a0<\/a><\/strong><\/span><\/p><\/blockquote>\n<h2><b>Why is the Government of Canada proposing these changes?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As it stands today, the current GST\/HST regulations result in taxes not being required for online purchases from non-resident vendors or purchases made through digital platforms. As such, these new measures would result in GST\/HST being required upon purchase for these types of transactions, specifically for Canadian consumption. <\/span><b>\u00a0<\/b><\/p>\n<blockquote><p><i><span style=\"font-weight: 400;\">\u201cTo improve the collection of the GST\/HST and level the playing field between resident and non-resident vendors, the Government proposes that non-resident vendors supplying digital products or services (including traditional services) to consumers in Canada be required to register for the GST\/HST and to collect and remit the tax to the CRA on their taxable supplies to Canadian consumers.\u201d<\/span><\/i><\/p><\/blockquote>\n<h2><b>When will these proposed measures take place?\u00a0<\/b><\/h2>\n<p>As of July 1, 2021, these measures will be applied to the affected goods mentioned above. In addition, the measure related to warehouse fulfillment would apply to the affected supplies on or post-July 1.<\/p>\n<p>Supplementary information on these measures can be found within Annex 4 of the Fall Economic Statement, under tax measures.<\/p>\n<h2><b>Are there any exceptions of note?\u00a0<\/b><\/h2>\n<p>There are a few examples that are provided in order to understanding the cases in which exceptions are valid to the new GST\/HST rules:<\/p>\n<ul>\n<li>Supply to different provinces\/territories: If a non-resident supplier provides security monitoring service for a cottage or condo in Ontario, to a consumer whose place of residence is in Alberta, the non-resident should collect the Ontario HST rate.<\/li>\n<li>Non-resident vendors or distribution platform operators shouldn\u2019t collect GST\/HST on digital products or services purchased by someone whose usual place of residence is in Canada &#8212; if the supply is linked or restricted to a location outside of Canada! Such as real estate outside of Canada, etc.<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">&#8212;\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are unsure whether these new measures will impact your current operations, it is ideal that you connect with a customs broker that can help you navigate these adaptive situations. <\/span><span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/clearit.ca\/clearance_step2\">Click here to connect with a broker!\u00a0<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Next month, there will be some notable updates made to the GST\/HST requirements for non-resident vendors. It was announced that the Government of Canada will be implementing new tax measures that will focus primarily on the \u201cdigital economy\u201d, as stipulated in the Government of Canada\u2019s Fall Economic Statement.\u00a0 As a refresher, a non-resident importer is [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":5047,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[142,250,241],"tags":[],"_links":{"self":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/5045"}],"collection":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/comments?post=5045"}],"version-history":[{"count":3,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/5045\/revisions"}],"predecessor-version":[{"id":5679,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/5045\/revisions\/5679"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media\/5047"}],"wp:attachment":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media?parent=5045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/categories?post=5045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/tags?post=5045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}