What is GST (Goods and Services Tax)?
There is a 5% sales tax known as the Goods and Services Tax (GST), which is a federal tax on goods and services. In addition to supplies of tangible real property (land, buildings) and intangible personal property, such as trademarks, rights to use a patent, and digital products, GST is also applied to all supplies of goods and services made in Canada.
It is important to know that GST/HST is a recoupable tax, and GST/HST registrants are entitled to claim an input tax credit (“ITC”) on GST/HST they incur in the course of their commercial activities. Basically, GST/HST is usually not a net cost to an entity (business) that is registered.
What is HST?
Harmonized Sales Tax, or HST, is the abbreviation of Harmonized Sales Tax, a form of sales tax representing a combination of a 5% federal GST and a provincial sales tax that has been added to the federal GST in order to create a unified tax. There is a 15% HST on goods and services only in the participating provinces of Canada. Generally speaking, HST applies to the same type of property (that is, tangible and intangible) and services as GST, however, at a different rate. It is important to note that the HST rate varies from province to province, as well as city to city.
Here is a list of the provinces and territories that are participating in the HST in Canada:
In New Brunswick, the percentage is 15%;
Newfoundland and Labrador – 15%;
In the province of Nova Scotia, the rate is 15%;
Among the provinces, Ontario has a 13.3% share;
Prince Edward – 15%.
What is Provincial Level Sales Tax?
PST or QST refers to the provincial sales tax in Quebec.
There are four provinces in Canada that impose a provincial sales tax which is separate and in addition to the federal goods and services tax (GST) imposed by the federal government. As with the GST, the PST and QST are imposed on most sales of supplies and goods.ases of supplies and goods that are made.
QST is a refundable tax, like GST, so registrants that incur QST in the course of their business can claim input tax credits (“ITCs”). It is important to note, however, that the QST is generally not a net cost for businesses registered with it.
British Columbia, Manitoba, and Saskatchewan impose a provincial sales tax (PST). Taxes on this item are not refundable. It is a consumption tax, which is meant to be paid by the end-user of the product or service in question. You could be eligible for some exemptions, such as the sale for resale exemption.
It is expected that the change to the following tax rates will have an impact on sales into the following provinces:
- British Columbia – 7%;
- Manitoba – 7%;
- Quebec – 9.975%;
- Saskatchewan – 6%;
Canada GST of 5% will also be charged in each of these provinces.
Who must pay PST/QST?
In general, when the sale is made into one of the four applicable provinces, the customer is responsible for paying the applicable transactional tax for taxable goods or services acquired from the supplier in Canada.
Invoices are sent to the customer by the supplier who then collects the tax from the customer and subsequently remits the collected taxes to the government entity that is responsible for the tax.
Who is responsible for paying the GST/HST?
Generally, the customer is responsible for paying GST/HST on taxable goods or services acquired from their supplier in Canada.
The supplier invoices the customer for GST/HST and collects the tax from the customer, after which the supplier remits the collected tax to the government.
Where does GST/HST apply?
GST/HST are generally applicable to all taxable supplies made in Canada.
When does the PST/QST apply?
Zoom determines which transaction taxes apply to a sale based on the “sold to” address of the customer. The applicable PST/QST rate will be applied to sales into one of the four previously mentioned provinces.
A GST/HST account number is what?
GST/HST account numbers are 9-digit numbers assigned to registrants by the Canada Revenue Agency. They allow the CCRA to identify the person’s status as a registrant. GST account numbers are usually shown on the invoices issued by the supplier of goods and services.
Does Zoom have a GST/HST number?
Yes, Zoom is registered with the Canada Revenue Agency under the GST/HST number 786568113 RT0001. On the invoices that Zoom sends to Canadian clients, this number will appear.
What is a QST account number?
A QST account number is a unique ten-digit number issued by Revenue Quebec that identifies an individual as a registrant for the purposes of the QST in Quebec. On the invoice issued by the supplier when QST is charged, the customer’s QST account number should appear in order for the customer to be able to recover the amount he paid as QST.
Is there a QST number associated with Zoom?
Yes, I agree. The QST number for Zoom is 1227494057 TQ0001. This number appears on the invoices that Zoom sends to customers in Quebec.
What is a PST-BC (British Columbia) account number?
PST-BC account numbers are unique 8-digit numbers that can only be issued by British Columbia Finance that can be used by British Columbia companies to identify them as PST registrants.
Does Zoom have a PST-BC number?
There is a Zoom PST number in British Columbia, 12477834.
What is a PST-MB (Manitoba) account number?
The PST-MB account number is a unique seven-digit number issued by Manitoba Finance that is used to identify registrants for PST purposes in the province of Manitoba.
Does Zoom have a PST-MB number?
It is true that Zoom’s Manitoba PST (RST) number is 119635-1.
What is a PST-SK (Saskatchewan) account number?
Identifying the PST-SK registrant to Saskatchewan Finance is done by assigning a seven-digit number that is unique to the person. This number is used to identify them as a PST register in Saskatchewan.
Does Zoom have a PST-SK number?
Zoom’s Saskatchewan PST number is 7273121, which is its Saskatchewan PST code.
How is Zoom determining which customers GST/HST applies to?
In the event that the location of the customer’s “Sold To” contact address has been entered as being located in Canada, Zoom will apply GST/HST to those payments.
Will GST/HST apply if a Canadian company purchases Zoom for use in a location outside of Canada?
Even if the billing address is in Canada but the “Sold To” address is outside of Canada, GST/HST will not be charged if the Zoom product is intended to be used primarily outside of Canada, regardless of where it is sold. If the “Sold To” address is in Canada, then GST/HST will generally only be applicable.
In the event that a Canadian company purchases Zoom for use in an international location, will the applicable PST/QST be applied?
In cases where the “Sold To” address is within the boundaries of one of the four provinces, the PST/QST will apply. There are situations where the address on the “sold to” side is outside of these four provinces, but the sale still occurs in Canada, and therefore only Canadian GST/HST will be applied.
Why did I get a notification email if I am not located in Canada?
As a precautionary measure, and in order to ensure that all the customers who may be impacted are fully and properly informed, we sent the notification communication to everyone who had a “Bill To” OR “Sold To” address in Canada.
Can I claim an input tax credit for the PST and QST?
Currently, only the QST imposed by the province of Quebec is a creditable tax in respect of which a tax credit can be claimed by businesses registered in the province of Quebec. A customer who pays the PST in British Columbia, Manitoba, or Saskatchewan does not have to pay an input tax on the PST they paid.
Is there a minimum threshold purchase amount before PST/QST is applied?
No. As part of the sale of Zoom’s services, you will have to pay PST/QST in addition to the Canada GST.
Is there a minimum threshold purchase amount before GST/HST is applied?
No. GST/HST is applicable to the sale of all Zoom’s services.
What exemptions are available?
If you would like our tax experts to review your exemption certificate, please submit it to us. As soon as your exemption certificate has been approved, you will be refunded or credited for all applicable taxes for which you are eligible for exemption.
What if I have a PST reseller account number/exemption form and forget to provide it?
If the reseller account number/certificate has not been provided within the specified deadline, PST will usually be applied to all invoices. We recommend, however, that if a valid PST reseller account number/certificate covering the period of service is available, please contact Billing by chat within 30 days of the invoice issuance date.
Are there any special exemptions applicable for charities under which GST may not be charged?
It is true that there are no exemptions available for charities when it comes to the GST/HST. In some cases, however, charities may be able to reclaim from the government a part of the GST/HST that they have paid on their expenses, depending on their status.
Will GST/HST apply even if a Canadian company provides a valid GST/HST number to Zoom?
Yes. There is a GST/HST charge on the sale of all Zoom’s services.
Are there any GST/HST obligations for me as a customer?
No. There is no GST/HST obligation on the part of the customer. You should make sure to keep a copy of Zoom’s invoice for your records in the event you intend to claim an input tax credit for the GST/HST you paid to Zoom.