GST Registration - anomaly

New client, with income profile: $80K exported, $20K CDN-source, taxable.

CRA insists that client should GST Register as worldwide gross income will be > $30K, even though if only Canadian-source income, they’d be a non-registrant as a small supplier.

Seems anomalous to me, but I think CRA (horrors!) might be correct?

I hate to say it but CRA is sometimes correct.

I hate it when CRA gets something right, especially when it’s weird.

What is weird? Maybe hating a policy that may well be to your client’s advantage? Otherwise taxable sales that are exported are zero-rated, so input tax credits can be claimed. Far from being anomalous, that situation was intended from the start, to encourage development of export markets.

What’s anomalous? How about the exemption for the cost of travel outside the country, which has the same economic effect as an import. I know people who wouldn’t buy a “foreign” car built in Canada, but think nothing of “importing” a vacation in Florida, Arizona, Mexico, Cuba, Costa Rica, or what-have-you.

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