Paying a broker HST
By Julia Germain | May 22, 2013
Carol asked:
When a broker works for me do I pay the broker HST? I have already paid it on the Invoice from my customer it would be truck driver to truck driver.
Julia Germain answered:
Anyone you buy services or products must be registered for HST if their gross income is over $ 30,000/annum.
This is a helpful link on the Canada Revenue Agency webpage that you should read and become familiar with http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html.
If they do not charge you HST on their Invoice, then do not pay it. If they do charge you HST on their invoice, then pay it but only after you have verified that the name, date of transaction and HST account # are valid.
You can verify that # here:
http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/gsthstrgstry/menu-eng.html
You will encounter business associates who are cheating the system, wrong number, just registered but don't have the number etc. Don't ever pay HST until they can prove they are registered.
It is your duty as a business owner, to ensure that you know these things. You are also unfortunately required to verify that those you do business with are compliant.