# HST and other Taxes for USA services?



## jamesbe (May 8, 2010)

I've started providing an online service to a company based in the US.

But I'm not sure if I have to charge them HST? They just pay me by cheque so I don't think I need to fill out their W forms either. But I really don't know much about US taxation.

I'll never head there to work for them, this is purely an over the e-mail thing...

Anyone know if I can just send them a bill for my services and leave it at that?


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## Homerhomer (Oct 18, 2010)

No you don't charge them HST.

If you provide services to them on the regular basis they should ask you to get few forms filled out (W-8BEN) so they don't have to withold taxes from you.


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## jamesbe (May 8, 2010)

That's the thing I'm not on a payroll they are just going to cut me a cheque for my invoice so no taxes. But going to catch up to someone no?

I'll of course declare it on my income tax at years end.


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## the-royal-mail (Dec 11, 2009)

I believe the threshold for GST is $30K/yr. Will you be doing more than this amount of business in the US over a year?

If not, I wouldn't worry about it and just keep copies of the invoices and add them all up and declare as income.


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## marina628 (Dec 14, 2010)

We do about a million a year from one company in South Africa and they are coded tax exempt.I assume that applies to all foreign companies.


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## jamesbe (May 8, 2010)

Yeah I do HST in Canada as I'm well over $30k but never provided service across the border before. I can't seem to find anything about the US on CRA's website so I guess I don't charge them...


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## Homerhomer (Oct 18, 2010)

jamesbe said:


> That's the thing I'm not on a payroll they are just going to cut me a cheque for my invoice so no taxes. But going to catch up to someone no?
> 
> I'll of course declare it on my income tax at years end.


I know you are not the employee, US tax rules for foreigners providing services to US companies are strange but quite specific.

I am providing services to US companies out of Canada and was required to fill those forms or they would be witholding taxes, it's common and that's how it is.

Sales to outside Canada are called zero rated, means you do not charge them HST but you can still claim HST ITC.

If your services were HST excempt you wouldn't charge hst, but you also wouldn't be able to claim ITC on your expenses.


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## Homerhomer (Oct 18, 2010)

the-royal-mail said:


> I believe the threshold for GST is $30K/yr. Will you be doing more than this amount of business in the US over a year?
> 
> If not, I wouldn't worry about it and just keep copies of the invoices and add them all up and declare as income.


How much business is done in US is not relevant, total revenues of the company is what's important for 30k threshold.


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## FrugalTrader (Oct 13, 2008)

As others have mentioned, you do not charge HST to US clients.


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