Hello, need help in recording HST for an immigration company whose clients are mainly abroad. There are only a few clients in Canada which comprises only 5% but since the gross receipts from outside Canada is more than the HST threshold, that’s why they registered. My first question is since they are now an HST reg, should we charge HST to all invoices regardless of where the client is? And lastly, they registered only Sep 1 - Dec 31, 2021. I am trying to report the HST today being the deadline. In the period, I should only choose Sept 1 to Dec 31 right? And not from January 1 - Dec 31? Thanks. Thank you in advance mentors!
You do not charge HST to foreign clients. if you registered in September, then you only report on that period.
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The foreign clients are subject to HST, are zero-rated, so you can claim ITCs related to both foreign and Canadian clients.
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Thanks! So this means that I do not have to worry about the three general rules right? The second one confuses me because it says if Gen rule 1 is not applicable, then you charge based on where the services were performed. :(.
Got it, thanks a lot Helga. Will do the needful.
You charge HST based on whether you are EXPORTING your services, or providing services to those within Canada.