Discussion:HST Canadian contractor sales rep

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Discussion Forum Index --> Advanced Tax Questions --> HST Canadian contractor sales rep

Discussion Forum Index --> Tax Questions --> HST Canadian contractor sales rep

Hangmeup (talk|edits) said:

5 December 2012
We are a U.S. corporation and have a new Canadian sales representative that was hired as a contractor. All invoicing to customers is processed by our corporation. The contractor says he is required to levy and pay HST on his Canadian sales.

If we levy the HST on these invoices and pay the contractor, there is no guarantee that the funds will be paid to Canada. If this is similar to a sales tax, we could get into deep trouble for not remitting funds directly to the government. I am wondering if this is more similar to an income tax, and should be calculated and paid by the contractor personally without our involvement.

Has anyone had experience with this? I would really appreciate any help I can get!


EmpireCPA (talk|edits) said:

5 December 2012
The CRA(Canada Revenue Agency) has a user friendly website and provides guidance on who/when/how to pay GST/HST.

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