Goods and Services Tax/Harmonized Sales Tax Bond
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What It Is A Goods and Services Tax/Harmonized Sales Tax Bond & Why It’s Needed
Goods imported into Canada are subject to the Goods and Service Tax (GST) or the Harmonized Sales Tax (HST). The GST was implemented in Canada on January 1, 1991. The GST/HST is a tax on final consumption, however, unlike a retail sales tax, the GST/HST has a multistage collection process.
GST is applied at the border to all imported Commercial goods destined or supplied to all provinces within Canada. In turn you will also collect the GST from your Canadian customers by billing them GST Sales Tax on your invoice to them. All Firms with (Canadian) annual sales exceeding $30,000 must register and must post a GST Bond. You will be issued a Business Number (BN) with an annex code of “RT” for GST and “RM” for importing. Remember, even if you do not need to register for GST you must still register for a BN for importing into Canada, which will include an annex code of RM for importing only.
Registered firms collect the GST on the sale in Canada of taxable goods and services supplied to all provinces. After registering you would prepare and submit a GST return quarterly showing the amount of tax you charged and the amount of tax you paid. If the amount of GST charged is greater than the amount you paid, the difference would be owed to the Government of Canada. If the amount of GST paid is larger, you could claim a refund. Transborder shipping costs are not subject to the GST/HST.
How Do I get a Goods and Services Tax/Harmonized Sales Tax Bond?
ALIGNED Insurance will secure a GST Bond on your behalf. ALIGNED just requires that the attached Goods and Services Tax/Harmonized Sales Tax Bond Application be completed and returned to email@example.com
To learn more about a Goods and Services Tax/Harmonized Sales Tax Bond or other bonding and/or surety needs for your organization connect with an ALIGNED Insurance Advocate today at www.alignedinsurance.com
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