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Should I be charging HST for my services?
Expert: CRA
Brian asked:
I am an independent DZ driver with my own truck and currently doing pickups and deliveries for one carrier. My question is should I be charging HST for my services?
CRA answered:
The answer to this question is contingent upon the details, but it sounds as if you are providing interline services. Interline services are zero-rated, which means you are not obligated to charge HST to the carrier.
The definition of interlining according to the CRA website:
"Several carriers may take part in the supply of a freight transportation service during the course of a continuous freight movement from the shipper to the consignee, but only one carrier invoices the customer. This process is called interlining.
Only the invoicing carrier who settles the freight bill directly with the customer, who may be the shipper or the consignee, is responsible for charging and collecting any applicable GST/HST. Supplies between interlining carriers are zero-rated. This is the case even if the invoicing carrier is acting as an agent for the other carriers for collecting the GST/HST."
I would advise consulting Guide RC4080, available on the CRA website, which will allow you to better understand if you fall under this category and thus whether or not to charge HST.
About the author
The Canada Revenue Agency (CRA) administers tax laws for the Government of Canada and for most provinces and territories and various social and economic benefit and incentive programs delivered through the tax system.
