![]() ![]() This test will be triggered if in one calendar quarter, the supplier goes over the $30,000 threshold. There is an exception to the “last four calendar quarters test”, and that’s the “calendar quarter test”. However, since the $30,000 threshold is passed in the October to December 2018 quarter, this supplier will be required to register with the authorities to collect sales tax as of the 1st of February 2019. In this example, the supplier is considered a small supplier up to December 2018. If the $30,000 threshold is passed under this test, the person must begin collecting sales taxes on the first day of the second month following the end of the quarter. This is what is commonly referred to as the “last four calendar quarters test”. Under this provision, a person will be considered a small supplier if in the last four calendar quarters (they do not have to be in the calendar year), taxable supplies provided have not exceeded $30,000. However, there are exclusions to this rule, the most common one being the small supplier provision. The full list of exempt supplies can be found on Schedule V of Part IX of the ETA.Īny person who provides a taxable supply is under obligation to register with the authorities to collect sales tax under subsection 240(1) of the ETA. Most services provided by charities and not-for-profit organizations.Sale of real estate property (land and building excluding new developments).Health and dental care (excluding cosmetic).Due to this, the provider of the supply cannot claim any input tax credits. ![]() These supplies are not subject to sales tax, and are considered non-taxable. The full list of zero-rated supplies can be found on Schedule VI of Part IX of the ETA.
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